David S. Gibbons, Founder and Chairman, CASHPOR Micro Credit This paper will begin with a summary of what we know, based on Kathleen Odell’s recent report, "Measuring the Impact of Microfinance: Taking Another Look"; and by considering the views of Mature Clients (those who have been borrowers for more than 5 years). Also included will be a discussion on asking the right questions to determine impact, such as is continued borrowing statistically associated with being no longer poor? The paper will argue that the difficult, complex and time-consuming process of attribution of cause and effect is not essential. If according to the Progress out of Poverty IndexTM, more than two-thirds of Mature Clients (those who have been borrowers for more than 5 years) who were formerly poor, have progressed out of poverty, it would be enough to show that continued borrowing for at least 5 years is positively and strongly, statistically associated with no longer being poor. Then the critical questions would be what proportion of MFI clients borrow for at least 5 years, and how that proportion could be increased?
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