- The promotion of better employment; and
- A reduction in the vulnerability of the working poor.
The Social Dimensions of Development Finance
In collaboration with the Association of African Development Finance Institutions (AADFI) and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), the ILO investigated what management systems DFIs employ to identify and manage social risks, impacts, and opportunities. The results of the study are summarised in two new Social Finance publications, one for Africa and one for Asia and the Pacific.
As part of PROMISE IMPACT, a seminar was organized on 14th of December 2016 to share experiences and practices in delivering financial and non-financial services by financial institutions to achieve what is often referred as the “double bottom line”.
The purpose of the seminar is to provide a platform for exchanging knowledge in inclusive finance, decent work and social performance management (SPM) as part of a strategy to achieve economic and social development.
Together with the teams of the Youth at Work and IRAM technical cooperation projects, the Social Finance Programme established a collaboration with the Moroccan Central Bank (through the Moroccan Foundation for Financial Education-FMEF) to develop and roll out a national financial education programme. During his visit to Morocco in March 2016, ILO's Director General Guy Ryder signed a collaboration agreement with the Governor of the Central Bank and President of FMEF Abdellatif Jouahri. In his interaction with the Central Bank, the DG acknowledged the financial inclusion agenda's contributions to economic growth, employment and decent work. ILO's press release here.
Knowledge Sharing Workshop
Microfinance for Decent Work: Enhancing the impact of microfinance on formalisation and productivity, The Indian Experience
New Delhi, India
4 December 2015
Access agenda here.
Microfinance for Decent Work – Enhancing the impact of microfinance: Evidence from an action research programme
Did you know that enterprises loans can be used to encourage small businesses to formalize? Or that modifications to an insurance product can prevent child labour? And significant improvements to occupational safety and health can be achieved by a microfinance institution? These findings and much more can be found in the synthesis report from ILO's Microfinance for Decent Work action research project, which is now available.
A series of Working Papers on Microfinance for Decent Work are released
From 2008 to 2012 the ILO collaborated with 16 microfinance institutions to test a range of approaches to foster social impact through the delivery of innovative financial and non-financial services. Eliminating child labour, fostering the formalization of enterprises, reducing vulnerability and enhancing business performance through improved working conditions – these are decent work objectives that MFIs addressed in the framework of the “Microfinance for Decent Work” (MF4DW) action research programme. For a full list of SFP working papers, click here.
Professional microcredit and support to enterprise creation in France and Europe: What effects on employment?
3 February 2015
Prevention and elimination of bonded labour: the potential and limits of microfinance-led approaches
08 January 2015
This paper, authored by S. Premchander V. Prameela and M. Chidambaranathan of the Indian NGO SAMPARK, documents the learning processes of the NGOs and microfinance organizations that experimented with different approaches to microfinance and bonded labour. It highlights the importance of adopting a holistic and integrated approach, including social, economic, political and judicial interventions at individual, household, community and higher levels. In making the paper available to a wider audience, we hope to stimulate broader debate and experimentation on how microfinance can most effectively contribute to ending bonded labour.
Microcredit and support to enteprise creation in France: what is the situation of the entrepreneurs 3 years after
18 June 2014
Can financial institutions be drivers of formalization of enterprises?
The ILO Enterprises Meeting Room - 11th Floor
June 16th 2014,10.30 am to 11.30 am
In India, the innovation of a microfinance institution lead to a 70% increase in formalisation status of the clients- beneficiaries of the project.
Mr George Thomas, the Executive Director of Evangelical Social Action Forum (ESAF) Micro Finance & Investments Pvt. Ltd will share the results of the impact assessment of the "Shram Jyoti" project implemented by ESAF together with the ILO in the framework of the Action research on Microfinance for decent work.
Press here to access the impact assessment report.