Helping to Build a Microfinance Industry

This strategy paper sets out the broad directions and priorities that will guide the third phase (2003-2008) of the Consultative Group to Assist the Poor (CGAP), together with plans for implementing the strategy.

The strategy was prepared on the basis of extensive discussions between the Consultative Group of member donors, the Policy Advisory Group, the CGAP Secretariat, and a large number of other leaders in the microfinance industry through vision statements for the microfinance industry and other mechanisms.

The strategy paper:

• Defines the role of microfinance in the development agenda;
• Discusses the key challenges of expanding financial services to the poor on a much larger and more sustainable scale;
• Proposes ways in which the donor community - individually as well as collectively - can best promote the development of financial services to the poor;
• Discusses, specifically, the manner in which CGAP as a donor consortium can assist donors in this effort that includes:
  • Facilitating donor interaction and collaboration among its donor agencies;
  • Developing operational guidelines to address a range of issues facing donors;
  • Developing technical tools and providing just-in-time information;
  • Building staff skills;
  • Offering direct technical assistance to individual donor agencies where it affords the most leverage and has the most potential for impact.