Open and Distance Learning in Microfinance

This paper was commissioned by the Microcredit Summit Campaign in 2006. This article takes a look at 'Open and Distance Learning' (ODL) with a focus on the practice in developing countries. The article is divided into the following sections:

• Section 1 presents an overview of the ODL concept examining:
  • Distance learning and the new trends in human resources development;
  • The practice of open and distance learning in developing countries.
• Section 2 overviews the emergence of ODL in microfinance.
• Section 3 looks the challenges in the implementation of a Distance Learning model for microfinance institutions (MFIs). These include the need for:
  • Initial investment in learning tools;
  • Innovations in training methodologies;
  • Computer literacy.

The article concludes that:

• ODL:
  • Among MFIs, is still in its nascent stages;
  • Is the most viable means to increase MFIs' access to both the quantity and the quality of training;
  • Presents an opportunity to move from the culture of "schooling" to one of "learning";
  • Promotes life-long learning, individual responsibility and, ultimately, empowerment.
• MFIs will start using sophisticated technologies in the field because:
  • They will have to reduce training costs as the industry moves away from donor-led models to commercial models;
  • They will need to expand their recipient base and train more and more disseminated staff;
  • With aggregate demand, prices will tip and ODL will become affordable and commonplace.