September 2011 has marked another milestone in Grameen Financial Services Pvt. Ltd.'s (GFSPL) result oriented work for social development.  The Grameen Foundation USA (GF) has awarded GFSPL with the Certificate of Completion for its Basic, Advanced and Tracking Over Time Standards of the use of Progress out of Poverty Index (PPI).  

According to Grameen Foundation, the PPI “is a simple and accurate tool that measures poverty levels of groups and individuals. Using the PPI, MFIs can better determine their clients’ needs, which programs are most effective, how quickly clients leave poverty, and what helps them to move out of poverty faster.”

GFSPL has adopted the PPI in December 2008.  The PPI data is collected during client intake, each loan renewal, and at drop-out, if the client leaves the MFI.   As of March 2011, GFSPL has collected PPI scores from over 300,000 active clients and 60,000 drop-outs.  More than 60,000 of the active clients now have at least two PPI scores, and about 4,000 have at least three PPI scores. Analyzing clients who have multiple PPI scores allows the organization to understand more precisely the effects of the financial services offered to them. These scores are then benchmarked against the national and the international poverty lines in order to arrive at the appropriate conclusions that the data can offer.

It has been noted that the overall poverty levels of clients with two PPI scores have improved consistently across all poverty brackets during the course of the past two years.  Among these clients, 9% have moved out of the stage of absolute poverty ($1.25/day) while 7% of those clients in the $2/day category have moved above this poverty line.  It has also been observed that the progress made by clients across poverty lines has been steady. The chances of clients during the third PPI  instance of living on $1.25 a day has reduced by 15% and clients living on $2 a day by 12% as compared to their chances during 1st PPI instance.

GFSPL has always been keen to stick to its programs and their effective implementation as a socially responsible organization. Its track record, millions of its clients and the awards it received in the past amply testify to this fact. Therefore, the present achievement of GFSPL in being certified as performing the PPI effectively and efficiently might not be seen as something very exciting for a close observer of GFSPL's mode of action, whether it is in planning or in the implementation of its programs. It would be right to say that the certification is the natural result of the meritorious work carried out by the organization.