From Skepticism to Success: The World Bank and Banco do Nordeste in Brazil

This case study showcases the partnership between the World Bank (WB) and Banco do Nordeste (BN) - Northeast Brazil's largest financial service provider. This partnership led to the development of the CrediAmigo program to assist microentrepreneurs in the region. The study describes the WB inputs to BN in the form of appropriate technical assistance and performance-based funding criteria.

Further, the paper recognizes the role that World Bank played in CrediAmigo's program evolution, by taking the following key decisions:

• Enlisting technical experts to assess project viability;
• Starting the project on a pilot basis and on limited magnitude;
• Providing microfinance training to donor staff;
• Limiting donor involvement in the pilot phase to encourage trustworthiness;
• Continually supporting and providing partnership to the task team even in troubled times;
• Signing a performance-based contract.

The paper also enlists the benefits perceived by BN staff in the BN-WB relationship:

• Access to high-quality technical assistance;
• The opportunity to learn from successful international MFIs;
• The possibility to undertake market research and impact assessments to refine CrediAmigo product;
• Increased credibility and recognition of BN as a sustainable provider of microfinance.

Finally, the paper corroborates that donors can foster sustainable MFIs by concentrating on quality technical assistance and by giving microfinance providers the time and resources needed to institutionalize microfinance best practices.