Disabilities Inclusion Framework for MFIs: Making Microfinance Institutions Disability Inclusive and Smart Campaign Certifiable

The Center for Financial Inclusion at Accion, in conjunction with the Smart Campaign and technical partner Handicap International has completed an activity under the FIELD-Support LWA to design and test disability inclusive tools and standards at Fundación Paraguaya, a microfinance institution in Paraguay, that can be broadly disseminated and implemented at microfinance institutions around the world.

This activity, launched in 2013, was part of a larger initiative by the Smart Campaign to develop tools and trainings for a standardized process model and toolkit to guide microfinance organizations in the disability inclusion process. The pilot designed and tested staff training on human resources policies and practices, disability inclusion, and partnership with disability organizations.

Why does this matter? There is a strong moral and legal case for disability inclusion, outlined under the Convention on the Rights of Persons with Disabilities in 2006. Approximately 650 million people currently live with a disability, 80 percent of whom live in developing countries.^[1] Connecting Persons with Disabilities (PWD) to MFIs highlights an additional economic case for disability inclusion that is equally compelling. Representing the world’s largest minority, PWD have higher rates of self-employment and small business experience than those without disability, but at the same time make up only 0.5% of clients of the world’s MFIs. Combined with estimates that 40% of current MFI clients are projected to develop a disability by age 65, institutions can undermine economic growth and sustainability through inaction. Increasing disability inclusion capabilities is essential for long term growth and prosperity.

With this in mind, the Center for Financial Inclusion (CFI) and its partners set out to pursue knowledge that MFIs can utilize to move towards disability inclusion in an accessible and realizable way.  The evidence-based program design and insights gained from the pilot activity have proven that disability inclusion, although challenging, is possible and worthwhile. The support of strategic partners who have experience working with and for people with disabilities combined with learning tools developed during this activity can help MFIs initiate disability inclusion from the construction of the first ramp to institution-wide commitment towards disability inclusion.

A recently published FIELD Brief describes the Framework for Disability Inclusion developed by CFI and provides lessons learned from piloting the Framework at Fundación Paraguaya. The Framework, as well as tools and trainings, are readily accessible in several languages on the CFI website.

Going forward, the creation of partnerships around the world, some of which are currently being pursued with MFIs in India, will ensure that the knowledge gained is not left on the shelf, and that Persons with Disabilities and MFIs can benefit from this learning on a global scale.

This activity was funded through the FHI 360-managed FIELD-Support LWA. 

Footnotes

[1] Convention on the Rights of Persons with Disabilities Factsheet