How AlSol is Integrating the PPI into Operations

This case study discusses the adoption and implementation of the Progress out of Poverty Index (PPI) by Alternativa Solidara Chiapas (AlSol) in Mexico.

AlSol is among Grameen Foundation's fastest growing partner MFIs in Latin America. It serves over 16,000 clients, mostly poor indigenous women in the agricultural sector. AlSol, which is among PPIs early adopters, previously used a means test for its entering clients to determine loan size, but the test could not assess poverty level. The organization's information needs related to the PPI included reliable and objective poverty level data, baseline of poverty status of new clients, data that could inform regular management decision making and ability to track clients' movement out of poverty.

Data from the PPI revealed that 75 percent of AlSol's entering clients were likely to be below the poverty line. Two years since PPI implementation, AlSol has made several changes such as:

• Change in client recruitment incentive system to reward recruitment of the very poor;
• Literacy and nutrition program for the poorest clients;
• Assessment of loan cycle level at which clients move out of poverty;
• Refocusing of services to increase outreach to the poor.