{"id":61,"date":"2014-02-23T18:29:52","date_gmt":"2014-02-23T18:29:52","guid":{"rendered":"http:\/\/blogs.scu.edu\/jcaemmerer\/?page_id=61"},"modified":"2014-03-06T19:34:32","modified_gmt":"2014-03-06T19:34:32","slug":"geographical-impact-potential","status":"publish","type":"page","link":"https:\/\/blogs.scu.edu\/jcaemmerer\/geographical-impact-potential\/","title":{"rendered":"Impact Potential"},"content":{"rendered":"

Case: Depth Scaling \u00a0of Microfinance in \u00a0Timor-Leste<\/b><\/span><\/p>\n

Assessing the ability of an organization (or its model) to scale in new areas requires an appreciation for how the organization or technology will interact with local demographics, culture, politics, and economics. Timor-Leste, a country largely let down by international aid efforts, provides a unique case study to analyze the potential of both Juhudi Kilimo and Kiva to scale in light of Timor-Leste\u2019s environment.<\/p>\n

In context \u2013 Demographics<\/i><\/b>: Timor-Leste is a small population of 1.2 million, with 74 percent of the population residing in rural areas.[ref]UNFPA Timor-Leste (2010). Retrieved February 22, 2014, from http:\/\/countryoffice.unfpa.org\/timor-leste\/2009\/11\/02\/1482\/timor-leste_democratic_republic_of\/<\/a>.[\/ref]<\/p>\n

In context \u2013 Technology<\/i><\/b>: <\/i>60 percent of all households in Timor-Leste are serviced by at least one mobile phone, while only 49 percent of agrarian households have mobile phone access. 7 percent of the population uses Internet, but only 1 percent has in-home Internet access.[ref]United Nations Integrated Mission in Timor-Leste, Communication and Public Information Office. Timor-Leste Communications and Media Survey (2011).\u00a0[\/ref] Microfinance is in its infant stages, and there exist two MFIs in the country.[ref]Banking with the Poor. Microfinance in Timor-Leste (2010). Retrieved February 28 from http:\/\/www.bwtp.org\/files\/BWTP%20Industry%20Update%201%20-%20Microfinance%20in%20Timor-Leste.pdf<\/a>.[\/ref]\u00a0However, the Asian development Bank reports an unmet demand for microfinance ranging between 275,000 and 400,000 individuals.[ref]Bankable Frontier Associates: The potential for New Technologies and Branchless Banking Models to Expand Access to Financial Services in Timor-Leste. Draft Jan 2009, ADB.\u00a0[\/ref]<\/p>\n

In Context \u2013 economics and financial system<\/i><\/b>: <\/i>Timor-Leste experiences weak financial and economic infrastructures, and nearly an entirely cash-based economy.<\/p>\n

\"DSC01625\"

Timorese \u00a0farmers don’t have access to advanced production equipment or inclusive financial systems. A depth scaling model could target both undersupplied demands (source: author).<\/p><\/div>\n

Taking into account these aspects particular to Timor-Leste, it is apparent that Juhudi Kilimo and depth scaling are most applicable for Timor-Leste\u2019s development due to its small and predominantly rural population, lack of financial institutions and infrastructure, and increasing access to mobile technologies. Its small population (with a MFI targetpopulation not exceeding 400,000) would be best served by a depth scaling MFI that seeks to bring as many beneficial services to a community as possible; \u2018stacking\u2019 the services, rather than \u2018spreading\u2019 the services, so to speak. Further, Timor-Leste\u2019s cash-based economy would benefit from a form of financial inclusion that went all the way to the individual level to ensure repayment. Beyond ensuring repayment, this would also begin to develop a culture of financial responsibility.<\/p>\n

\"This<\/a>

This depulper results in higher quality beans that sell for an increased market rate (source).<\/p><\/div>\n

Funding productive assets could have a significant positive impact, especially in the agricultural and traditional production sectors.<\/p>\n