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The funding landscape for microfinance is becoming increasingly complex, and significant amounts of financial and technical resources continue to be dedicated to microfinance. Unfortunately, funders often do not follow good practices and results are mediocre. CGAP's aid effectiveness initiative strives to improve the quality of aid flowing to microfinance. CGAP helps funding agencies (headquarters and field) internalize good practices, train staff, and adapt their internal systems to allocate and manage resources more effectively. For more information, please see the following links.
Member Donors of CGAP include multilateral agencies, bilateral agencies, and private organizations.
Better Aid for Access to Finance is the second high-level meeting of CGAP members on 20 October 2006 in Paris to discuss how to improve the way they work.
Donor Information Resource Center (DIRECT) offers a wide range of training and information products addressing critical issues in microfinance tailored specifically for donor staff.
CGAP Briefs for Donors and Investors offer concise two-page presentations of issues affecting microfinance programming and operations by donors.
Donor Brief No. 22, Maximizing Aid Effectiveness in Microfinance
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Donor Peer Reviews use microfinance as a test case for improving aid effectiveness generally, an issue indisputably at the top of the donor agenda.
CLEARS bring donor aid effectiveness one step closer to field with a country-level review to help donors identify gaps in the financial systems in the countries where they work and design interventions that build on their respective comparative advantages.
Donor Training: Building Financial Systems for the Poor: How Donors Can Make a Difference is a 5-day course specifically designed for donor staff who are not experts in microfinance but who seek a better understanding of how financial services are related to their scope of work.
Good Practice Guidelines for Funders of Microfinance The donor guidelines on good practice microfinance provide practical guidance for donor staff on how to best interact with, and support, the various actors in microfinance.
Portfolio Reviews are described in a recent Focus Note based on the findings of CGAP's evaluations of the World Bank and UNDP microcredit projects. The evaluations reveal serious problems, but also highlight promising corrective measures.
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