Impact Pathway Analysis and Sustainability Evaluation of Microfinance Projects in Goa, Camarines Sur, Philippines
Main Article Content
Keywords
Camarines Sur, Impac, Pathway Analysis, Microfinance, Review of Outcomes to Impact (ROtI), Sustainability Evaluation
Abstract
Due to the remarked efficacy of microfinance on poverty reduction and tenable development, this study evaluated the sustainability of microfinance projects (MPs) implemented by two purposively selected microfinance institutions (MFIs) in Goa, Camarines Sur using both quantitative and qualitative approaches. Impact pathway (IP) analysis showed that MP components were causal in attaining the desired outcomes. Analysis employing the difference-in-difference approach to quantify the economic impact (EI) of the MPs to the household beneficiaries (HBs) revealed an increase in business profitability before and after availing of MP, from 2010-2013.Utilizing MP has 9.80% positive impact to the economic condition of HBs. With the review of outcomes to impact (ROtI) based on IP analysis, it was found out that due to some factors hampering or contributing to the productivity of microfinance operations, the extent of sustainability of the MFIs regarding financial, socio-political and economic aspects are highly likely, while likely for institutional aspects.
References
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http://scholarsarchive.byu.edu/esr/ .
Alvarez, S., Douthwaite, B., Thiele, G., Mackay, R., Cordoba D., & Tehelen, K. (2010). Participatory impact pathway analysis: a practical method for project planning and evaluation,
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ISSN 1441-5429. Retrieved from https://ideas.repec.org/p/mos/moswps/2014-03.html.
Ayayi, A., & Sene, M. (2010). What drives microfinance institution's financial sustainability? The Journal of Developing Areas, 44(1), 303-324. doi:10.1353/jda.0.0093.
Aziz, A.M. (2013). Impact assessment of ASA microfinance program 2013. ASA University Review, 7(2), 152-168.
Baao Parish Multi-Purpose Cooperative (2010). ”˜Making the cooperative system work for all', 48th annual general assembly. Annual Report 2010.Goa Branch, Goa, Camarines Sur. www.baaocoop.com.
Bogan, V. L. (2014). Capital structure and sustainability: an empirical study of microfinance institutions. MIT Press Journals, 94(4), 1045-1058. doi:10.1162/REST_a_00223.
Brune, A. (2009). An empirical study on the impact of microfinance institutions on development [Unpublished Thesis]. Institute for Empirical Research in Economics (IEW). Retrieved from http://www.econ.uzh.ch/ipcdp/theses/BA_AmelieBrune.pdf .
Buera, F. J., Kaboski, J.P. & Yonhseok, S. (2012). The macroeconomics of microfinance. National Bureau of Economic Research, working paper 17905. doi: 10.3386/w17905.
Crepon, B., Devoto, F., Dulfo, Esther & Pariente, W. (2011). Impact of microfinance in rural areas of Morocco: evidence from a randomized evaluation. Working paper prepared for the International Growth at the London School of Economics. Retrieved from www.theigc.org
Czura, K. (2010). Impact assessment of microfinance in Sri Lanka: a household survey of microfinance clients in 5 selected ProMis partner. Sri Lankan - German Development Cooperation PROMIS - Promotion of the Microfinance Sector. Retrieved from http://www.microfinance.lk/microfinance_in_sri_lanka_literature.php .
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Douthwaite, B., Kuby, T., Van de Fliert, E., & Schulz, S. (2003). Impact pathway evaluation: an approach for achieving and attributing impact in complex systems. Agricultural Systems, 78(2), 243–265. doi:10.1016/S0308-521X(03)-00128-8.
Duflo, E., Abhijit, B., Glennerster, R., & Kinnan, C., (2013). The miracle of microfinance? Evidence from a randomized evaluation. National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w18950 .
Duvendack, M., & Jones, R. (2012). High noon for microfinance impact evaluation: re- investigating the evidence from Bangladesh. Journal of Development Studies, 48(12), 1864-1880. doi:10.1 080/00220388.2011.646989.
Duvendack, M., Jones, R., Hooper, L., Loke, L. & Rao, N. (2011). Evidence of the impact of microfinance: what is the evidence of the impact of icrofinance on the well-being of poor people? [Systematic review]. London: EPPI-Center, Social Science Research Unit, Institute of Education, University of London. Retrieved from
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Espiritu, N.O., Casin, M.C. & Camacho, S.C. (2010). Development pathways in the Philippine uplands: impacts and influences on forest resource management and human well-being. Asian Journal of Agriculture and Development, 7(2), 27-47.
Fuwa, N. (2007). Pathways out of rural poverty: a case study in socioeconomic mobility in the rural Philippines. Cambridge Journal of Economics, 31(1), 123-144. doi: 10.1093/cje/bel015.
Gaiha, R., & Thapa, G. (2006). A methodology for assessment of the impact of microfinance on empowerment and vulnerability. International Fund for Agricultural Development (IFAD). doi:10.1.1.116.4140.
Global Environment Facility (GEF) Evaluation Office (2009). The ROtI handbook towards enhancing the impacts of environmental projects. Retrieved from https://www.thegef.org/gef/ROtI .
Goa Brief Profile (2014). Municipality of Goa, Camarines Sur.
Guntz, S. (2011). Sustainability and profitability of microfinance institutions. Center for Applied International Finance and Development (CAIFD).
Habaradas, R.B. & Umali, M. (2013). The microfinance industry in the Philippines: striving for financial inclusion in the midst of growth. De La Salle University, CBRD Working Paper 2013-05. doi:org/10.2139/ssrn.2568021 .
Imperial, CJ., Flores, C., Almazar, J. & Asor, A. (2014). Microfinance institutions in the municipality of Goa, Camarines Sur: an assessment [Unpublished Thesis]. College of Business and Management, Partido State University, Goa, Camarines Sur.
Jackson, E. T. (2013). Interrogating the theory of change: evaluating impact investing where it matters most. Journal of Sustainable Finance & Investment, 3(2), 95–110. doi:org/
10.1080/20430795.2013.776257.
Kimando, L. N., Kihoro, J.M., & Njogu, G.W. (2012). Factors influencing the sustainability of microfinance institutions in Murang'a municipality. International Journal of Business & Commerce, 1(10), 21. Retrieved from http://www.ijbcnet.com/.
Kipesha, E.F. (2013). Performance of microfinance institutions in Tanzania: integrating financial and non-financial metrics. European Journal of Business and Management,5 (4), 94-105.
Kondo, T., Orbeta, A., Dingcong, C. & Infantado, C. (2008). Impact of microfinance on rural households in the Philippines. Philippine Institute for Development Studies. http://www.pids.gov.ph
Microcredit Summit Campaign (2013). Philippines to host the 2013 microcredit summit; partnerships against poverty. Retrieved from http://partnershipsagainstpoverty. org/2013-partnerships-againstpoverty-summit-declaration/
Nyamsogoro, G.D. (2010). Financial sustainability of rural microfinance institutions (MFIs) in Tanzania [Unpublished Thesis]. Greenwich Academic Literature Archive (GALA). Retrieved from https://core.ac.uk/display/316086 .
Obeng, C.K. (2011). The impact of microcredit on poverty reduction in rural areas- a case study of Jaman North District, Ghana [Thesis]. Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi. Retrieved from http://ir.knust.edu.gh:8080/handle/123456789/4271.
Palis, F.G., Sumalde, Z.M. Torres, C.S. Contreras, A.P., & Datar, F.A. (2013). Impact pathway analysis of ACIAR's investment in rodent control in Vietnam, Lao PDR and Cambodia. ACIAR Impact Assessment Series Report No. 83. Australian Centre for International Agricultural Research: Canberra. www.aciar@aciar.gov.au .
Roman, PB. M. (2004). Microfinance in the banking sector: current environment and future directions. Retrieved from http://nap.psa.gov.ph/
Roodman, D., & Morduch, J. (2013). The impact of microcredit on the poor in Bangladesh: revisiting the evidence. The Journal of Development Studies, 50(4), 583-604. doi: 10.1080/00220388.2013.858122.
Severino, J.M. (2013). Microfinance barometer 2013 [Editorial]. Retrieved from http://www. citigroup.com/citi/microfinance/.
Stein, D. & Valters, C. (2012). Understanding ”˜theory of change' in international development: a review of existing knowledge. Asia Foundation and The Justice and Security Research Programme. Retrieved from http://eprints.lse.ac.uk/56359/1/JSRP_
Paper1 .
Tilakaratna, G.M. (2005). Microfinance in Sri Lanka: a household level analysis of outreach and impact on poverty. Poverty Monitoring,Measurement and Analysis Network. Institute Policy Studies of Sri Lanka. Retrieved from http:// www.ips.lk/index.php/49-researchpublications/.
Tuprio, K.C. (2014). Impact of microfinance programs on the business and economic condition of market vendors in Goa, Camarines Sur [Unpublished Thesis]. School of Graduate Studies, Partido State University, Goa, Camarines Sur.
Turnell, S. (2005). A survey of microfinance institutions in Burma [Unpublished thesis]. Macquarie University Sydney, Australia. Retrieved from http://www.econ.mq.edu.au/staff/sturnell.htm.
doi:10.5539/ijef.v3n4p217.
Addo, C.K. & Twum, S.B. (2013). Sustainability of microfinance institutions in developing countries through sound credit risk management: evidence from business experience, purpose of loan, loan term, and profit maximization motive. Global Journal of Finance and Banking, 7(7), 9-18.
Adongo, J., & Stork, C. (2005). Factors influencing the financial sustainability selected microfinance institutions in Namibia. The Namibian Economic Policy Research Unit. Retrieved from http://www.afdb.org/.
Afrane, S. (2002). Impact assessment of microfinance interventions in Ghana and South Africa: a synthesis of major Impacts and lessons. Journal of Microfinance, 4(1). Retrieved from
http://scholarsarchive.byu.edu/esr/ .
Alvarez, S., Douthwaite, B., Thiele, G., Mackay, R., Cordoba D., & Tehelen, K. (2010). Participatory impact pathway analysis: a practical method for project planning and evaluation,
Volume 20(8), 946-958. doi:10.1080/09614524.2010.513723.
ARDCI NGO Group Inc. (2013). ARDCI NGO Group, Inc. Performance Report 2012.
Goa Branch, Goa, Camarines Sur. Awaworyi, S. (2014). Impact of microfinance interventions: a meta-analysis Monash University-Business and Economics, Department of Economics,
ISSN 1441-5429. Retrieved from https://ideas.repec.org/p/mos/moswps/2014-03.html.
Ayayi, A., & Sene, M. (2010). What drives microfinance institution's financial sustainability? The Journal of Developing Areas, 44(1), 303-324. doi:10.1353/jda.0.0093.
Aziz, A.M. (2013). Impact assessment of ASA microfinance program 2013. ASA University Review, 7(2), 152-168.
Baao Parish Multi-Purpose Cooperative (2010). ”˜Making the cooperative system work for all', 48th annual general assembly. Annual Report 2010.Goa Branch, Goa, Camarines Sur. www.baaocoop.com.
Bogan, V. L. (2014). Capital structure and sustainability: an empirical study of microfinance institutions. MIT Press Journals, 94(4), 1045-1058. doi:10.1162/REST_a_00223.
Brune, A. (2009). An empirical study on the impact of microfinance institutions on development [Unpublished Thesis]. Institute for Empirical Research in Economics (IEW). Retrieved from http://www.econ.uzh.ch/ipcdp/theses/BA_AmelieBrune.pdf .
Buera, F. J., Kaboski, J.P. & Yonhseok, S. (2012). The macroeconomics of microfinance. National Bureau of Economic Research, working paper 17905. doi: 10.3386/w17905.
Crepon, B., Devoto, F., Dulfo, Esther & Pariente, W. (2011). Impact of microfinance in rural areas of Morocco: evidence from a randomized evaluation. Working paper prepared for the International Growth at the London School of Economics. Retrieved from www.theigc.org
Czura, K. (2010). Impact assessment of microfinance in Sri Lanka: a household survey of microfinance clients in 5 selected ProMis partner. Sri Lankan - German Development Cooperation PROMIS - Promotion of the Microfinance Sector. Retrieved from http://www.microfinance.lk/microfinance_in_sri_lanka_literature.php .
Deaton, A. (1995). Data and econometric tools for development analysis. In J. Behrman & T.N. Srivivasan, B.V. (Eds.). Handbook of Development Economics, 3 (1785-1874). http://web2.uconn.edu/tripathi/5495/Deaton-handbook.pdf .
Douthwaite, B., Kuby, T., Van de Fliert, E., & Schulz, S. (2003). Impact pathway evaluation: an approach for achieving and attributing impact in complex systems. Agricultural Systems, 78(2), 243–265. doi:10.1016/S0308-521X(03)-00128-8.
Duflo, E., Abhijit, B., Glennerster, R., & Kinnan, C., (2013). The miracle of microfinance? Evidence from a randomized evaluation. National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w18950 .
Duvendack, M., & Jones, R. (2012). High noon for microfinance impact evaluation: re- investigating the evidence from Bangladesh. Journal of Development Studies, 48(12), 1864-1880. doi:10.1 080/00220388.2011.646989.
Duvendack, M., Jones, R., Hooper, L., Loke, L. & Rao, N. (2011). Evidence of the impact of microfinance: what is the evidence of the impact of icrofinance on the well-being of poor people? [Systematic review]. London: EPPI-Center, Social Science Research Unit, Institute of Education, University of London. Retrieved from
http://opus.bath.ac.uk/26940/1/Microfinance_2011Duvendack_report .
Espiritu, N.O., Casin, M.C. & Camacho, S.C. (2010). Development pathways in the Philippine uplands: impacts and influences on forest resource management and human well-being. Asian Journal of Agriculture and Development, 7(2), 27-47.
Fuwa, N. (2007). Pathways out of rural poverty: a case study in socioeconomic mobility in the rural Philippines. Cambridge Journal of Economics, 31(1), 123-144. doi: 10.1093/cje/bel015.
Gaiha, R., & Thapa, G. (2006). A methodology for assessment of the impact of microfinance on empowerment and vulnerability. International Fund for Agricultural Development (IFAD). doi:10.1.1.116.4140.
Global Environment Facility (GEF) Evaluation Office (2009). The ROtI handbook towards enhancing the impacts of environmental projects. Retrieved from https://www.thegef.org/gef/ROtI .
Goa Brief Profile (2014). Municipality of Goa, Camarines Sur.
Guntz, S. (2011). Sustainability and profitability of microfinance institutions. Center for Applied International Finance and Development (CAIFD).
Habaradas, R.B. & Umali, M. (2013). The microfinance industry in the Philippines: striving for financial inclusion in the midst of growth. De La Salle University, CBRD Working Paper 2013-05. doi:org/10.2139/ssrn.2568021 .
Imperial, CJ., Flores, C., Almazar, J. & Asor, A. (2014). Microfinance institutions in the municipality of Goa, Camarines Sur: an assessment [Unpublished Thesis]. College of Business and Management, Partido State University, Goa, Camarines Sur.
Jackson, E. T. (2013). Interrogating the theory of change: evaluating impact investing where it matters most. Journal of Sustainable Finance & Investment, 3(2), 95–110. doi:org/
10.1080/20430795.2013.776257.
Kimando, L. N., Kihoro, J.M., & Njogu, G.W. (2012). Factors influencing the sustainability of microfinance institutions in Murang'a municipality. International Journal of Business & Commerce, 1(10), 21. Retrieved from http://www.ijbcnet.com/.
Kipesha, E.F. (2013). Performance of microfinance institutions in Tanzania: integrating financial and non-financial metrics. European Journal of Business and Management,5 (4), 94-105.
Kondo, T., Orbeta, A., Dingcong, C. & Infantado, C. (2008). Impact of microfinance on rural households in the Philippines. Philippine Institute for Development Studies. http://www.pids.gov.ph
Microcredit Summit Campaign (2013). Philippines to host the 2013 microcredit summit; partnerships against poverty. Retrieved from http://partnershipsagainstpoverty. org/2013-partnerships-againstpoverty-summit-declaration/
Nyamsogoro, G.D. (2010). Financial sustainability of rural microfinance institutions (MFIs) in Tanzania [Unpublished Thesis]. Greenwich Academic Literature Archive (GALA). Retrieved from https://core.ac.uk/display/316086 .
Obeng, C.K. (2011). The impact of microcredit on poverty reduction in rural areas- a case study of Jaman North District, Ghana [Thesis]. Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi. Retrieved from http://ir.knust.edu.gh:8080/handle/123456789/4271.
Palis, F.G., Sumalde, Z.M. Torres, C.S. Contreras, A.P., & Datar, F.A. (2013). Impact pathway analysis of ACIAR's investment in rodent control in Vietnam, Lao PDR and Cambodia. ACIAR Impact Assessment Series Report No. 83. Australian Centre for International Agricultural Research: Canberra. www.aciar@aciar.gov.au .
Roman, PB. M. (2004). Microfinance in the banking sector: current environment and future directions. Retrieved from http://nap.psa.gov.ph/
Roodman, D., & Morduch, J. (2013). The impact of microcredit on the poor in Bangladesh: revisiting the evidence. The Journal of Development Studies, 50(4), 583-604. doi: 10.1080/00220388.2013.858122.
Severino, J.M. (2013). Microfinance barometer 2013 [Editorial]. Retrieved from http://www. citigroup.com/citi/microfinance/.
Stein, D. & Valters, C. (2012). Understanding ”˜theory of change' in international development: a review of existing knowledge. Asia Foundation and The Justice and Security Research Programme. Retrieved from http://eprints.lse.ac.uk/56359/1/JSRP_
Paper1 .
Tilakaratna, G.M. (2005). Microfinance in Sri Lanka: a household level analysis of outreach and impact on poverty. Poverty Monitoring,Measurement and Analysis Network. Institute Policy Studies of Sri Lanka. Retrieved from http:// www.ips.lk/index.php/49-researchpublications/.
Tuprio, K.C. (2014). Impact of microfinance programs on the business and economic condition of market vendors in Goa, Camarines Sur [Unpublished Thesis]. School of Graduate Studies, Partido State University, Goa, Camarines Sur.
Turnell, S. (2005). A survey of microfinance institutions in Burma [Unpublished thesis]. Macquarie University Sydney, Australia. Retrieved from http://www.econ.mq.edu.au/staff/sturnell.htm.
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Published
Aug 26, 2016
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How to Cite
Delfino, A. N. (2016). Impact Pathway Analysis and Sustainability Evaluation of Microfinance Projects in Goa, Camarines Sur, Philippines. Asia Pacific Higher Education Research Journal (APHERJ), 3(1). https://doi.org/10.56278/apherj.v3i1.207
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Research Article