Measuring poverty of microfinance clients in Haiti

Fonkoze, a microfinance institution in Haiti, has used a poverty “scorecard” to benchmark existing client data to the $1-a-day extreme poverty line. By referring to data from a national survey of household income, 12 variables already routinely collected by Fonkoze were found to be suitable as indicators of whether a household is above or below the extreme poverty line. A scorecard was constructed, which allocates a number of points to each household depending on their responses to those 12 questions: this total score can then be translated into a probability that each household lies above or below the poverty line. This scorecard has already been used to analyse poverty rates of clients across several Fonkoze branches and credit cycles. Introduction Fonkoze is Haiti’s largest microfinance institution, serving clients throughout rural areas of the country. Since its creation in 1994, Fonkoze has grown to a network of 29 branches, serving over 40,000 female credit clients through its solidarity loan program. Fonkoze has long had a commitment to tracking the impact of its work on the lives of its clients. Its primary method for collecting information on the wellbeing of its clients is the Kat Evalyasyon (“evaluation card” in Creole), which is used to assess all clients on entry to the credit program, and then at intervals as they progress through the program. The tool has been adapted over several years, and now consists of questions on: • Materials used in the construction of the family’s house • Type of bed and toilet/latrine used by the household • Ownership and use of land • Ownership of animals • Ownership of household goods