Global Microscope 2015 the Enabling Environment for Financial Inclusion

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Global Microscope 2015 the Enabling Environment for Financial Inclusion An index and study by The Economist Intelligence Unit GLOBAL MICROSCOPE 2015 THE enabling ENVIRONMENT FOR financial inclusiON Supported by Global Microscope 2015 The enabling environment for financial inclusion About this report The Global Microscope 2015: The enabling environment for financial inclusion, formerly known as the Global Microscope on the Microfinance Business Environment, assesses the regulatory environment for financial inclusion across 12 indicators and 55 countries. The Microscope was originally developed for countries in the Latin America and Caribbean region in 2007 and was expanded into a global study in 2009. Most of the research for this report, which included interviews and desk analysis, was conducted between June and September 2015. This work was supported by funding from the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group; CAF—Development Bank of Latin America; the Center for Financial Inclusion at Accion, and the MetLIfe Foundation. The complete index, as well as detailed country analysis, can be viewed on these websites: www.eiu.com/microscope2015; www.fomin.org; www.caf.com/en/msme; www.centerforfinancialinclusion.org/microscope; www.metlife.org Please use the following when citing this report: The Economist Intelligence Unit (EIU). 2015. Global Microscope 2015: The enabling environment for financial inclusion. Sponsored by MIF/IDB, CAF, Accion and the Metlife Foundation. EIU, New York, NY. For further information, please contact: [email protected] 1 © The Economist Intelligence Unit Limited 2015 Global Microscope 2015 The enabling environment for financial inclusion Project teams The Economist Intelligence Unit CAF Leo Abruzzese Vicepresidencia de Sectores Productivo y Financiero Project Director: [email protected] Manuel Malaret Romina Bandura Director: [email protected]/ Project Manager: [email protected] +58 212 209 2060 Atefa Shah Francisco Olivares Project Analyst: [email protected] Principal Investment Officer: [email protected] / Anil Sarda +58 212 209 6579 Project Associate: [email protected] Andrés Zamora Rachael Glynne Communications Officer: [email protected] / Marketing Executive: [email protected] / +58 212 209 2423 +44(2)7 576 8224 Center for Financial Inclusion at Accion Multilateral Investment Fund Elisabeth Rhyne Managing Director: [email protected] Inter-American Development Bank Sonja Kelly Sergio Navajas Fellow: [email protected] Senior Specialist: [email protected] / +1 202 623 3268 Bruce MacDonald Vice-President, Communications & Operations: Verónica Trujillo [email protected] Consultant: [email protected] / +1 202 312 4084 Eric Zuehlke Communications Director: [email protected] / Elizabeth Terry +1 202 393 5113 Communications Consultant: [email protected] / +202 623 1416 MetLife Foundation Evelyn Stark Assistant Vice-President: [email protected] The views and opinions expressed in this publication are those of The Economist Intelligence Unit and do not necessarily reflect the official position of the MIF, CAF, the Center for Financial Inclusion at Accion or MetLife Foundation. 2 © The Economist Intelligence Unit Limited 2015 Global Microscope 2015 The enabling environment for financial inclusion About The Economist Intelligence Unit About CAF The Economist Intelligence Unit (EIU) is the CAF—Development Bank of Latin America—has research arm of The Economist Group, publisher of the mission of stimulating sustainable The Economist. As the world’s leading provider of development and regional integration by country intelligence, it helps governments, financing projects in the public and private institutions and businesses by providing timely, sectors, and providing technical co-operation and reliable and impartial analysis of economic and other specialised services. Founded in 1970 and development strategies. Through its public policy currently with 18 member countries from Latin practice, the EIU provides evidence-based America, the Caribbean, and Europe, along with research for policymakers and stakeholders 14 private banks, CAF is one of the main sources seeking measureable outcomes, in fields ranging of multilateral financing and an important from gender and finance to energy and generator of knowledge for the region. For more technology. It conducts research through information, visit www.caf.com. interviews, regulatory analysis, quantitative modelling and forecasting, and displays the About the Center for Financial Inclusion at results via interactive data visualisation tools. Accion Through a global network of more than 350 The Center for Financial Inclusion at Accion (CFI) analysts and contributors, the EIU continuously helps bring about the conditions to achieve full assesses and forecasts political, economic and financial inclusion around the world. Constructing business conditions in more than 200 countries. a financial inclusion sector that offers everyone For more information, visit www.eiu.com. access to quality services will require the combined efforts of many actors. CFI contributes to full About the Multilateral Investment Fund inclusion by collaborating with sector participants The Multilateral Investment Fund (MIF), a member to tackle challenges beyond the scope of any one of the Inter-American Development Bank (IDB) actor, using a toolkit that moves from thought Group, is funded by 39 countries and supports leadership to action. For more information, visit private sector-led development benefiting www.centerforfinancialinclusion.org. low-income populations and the poor—their businesses, their farms, and their households. The About MetLife Foundation aim is to give them tools to boost their incomes: MetLife Foundation was created in 1976 to access to markets and the skills to compete in continue MetLife’s long tradition of corporate those markets, access to finance, and access to contributions and community involvement. Since basic services, including green technology. A core its founding through to the end of 2014, MetLife MIF mission is to act as a development Foundation has provided more than US$670m in laboratory—experimenting, pioneering, and grants and US$70m in programme-related taking risks to build and support successful micro, investments to organisations addressing issues small, and medium business models. Learn more that have a positive impact in their communities. at www.fomin.org Today, the Foundation is dedicated to advancing financial inclusion, committing US$200m to help build a secure future for individuals and communities around the world. To learn more about MetLife Foundation, visit www.metlife.org. 3 © The Economist Intelligence Unit Limited 2015 Global Microscope 2015 The enabling environment for financial inclusion Acknowledgements The following researchers, country analysts and specialists contributed to this report. We thank them for their contributions: Country analysis: Diane Alarcon, Madeline Baron, Dinah Bengur, Naubet Bisenov, Bronwen Brown, Chen Chen, Maria Fernanda Diaz de la Vega, Fatima Frank, Andrei Franklin, FRONTIER (Johannes Olschner), Afghanistan Holding Group (Josiane Hatem), Karen Kim, Haris Komic, M-CRIL (Gunjan Grover, Pankaj Kumar, Nitin Madan, Gaurav Prateek, Sanjay Sinha and Sana Zehra), Dinka Majanovic, MANAUS Consulting (Tamar Benzaken Koosed, Fernanda Luchine, Caroline Ott and Rachel Rosenberg), Scott Martin, Susana Martinez, Jason Mitchell, Thorn Pitidol, David Ramirez, Amila de Saram, Jimena Serrano, Deen Sharp, Alema Siddiky, Songhai Advisory (Nana Ampofo), Alexandra Taylor, Rex Ukaejiofo, Dana Vorisek and Nick Wolf. Model and report production: Caroline Conroy, Roberto Donadi, Mike Kenny, Paul Kielstra, Will Shallcross and Tom Scruton. Technical partner: We thank Arup Chatterjee from the Asian Development Bank for providing comments on the Asia scorecards. 4 © The Economist Intelligence Unit Limited 2015 Global Microscope 2015 The enabling environment for financial inclusion Contents Introduction 6 Latin America and the Caribbean 60 Middle East and North Africa 102 Microscope indicators 8 Argentina 60 Egypt 102 Key findings 10 Bolivia 62 Jordan 104 Regional findings 18 Brazil 64 Lebanon 106 Chile 66 Morocco 108 Microscope country profiles 24 Colombia 68 East and South Asia 26 Costa Rica 70 Sub-Saharan Africa 110 Bangladesh 26 Dominican Republic 72 Cameroon 110 Cambodia 28 Ecuador 74 Democratic Republic of Congo 112 China 30 El Salvador 76 Ethiopia 114 India 32 Guatemala 78 Ghana 116 Indonesia 34 Haiti 80 Kenya 118 Mongolia 36 Honduras 82 Madagascar 120 Nepal 38 Jamaica 84 Mozambique 122 Pakistan 40 Mexico 86 Nigeria 124 Philippines 42 Nicaragua 88 Rwanda 126 Sri Lanka 44 Panama 90 Senegal 128 Thailand 46 Paraguay 92 South Africa 130 Vietnam 48 Peru 94 Tanzania 132 Trinidad and Tobago 96 Uganda 134 Eastern Europe and Central Asia 50 Uruguay 98 Bosnia and Herzegovina 50 Venezuela 100 Glossary 136 Kyrgyz Republic 52 Appendix 144 Russia 54 Methodology and sources Tajikistan 56 Turkey 58 5 © The Economist Intelligence Unit Limited 2015 Global Microscope 2015 The enabling environment for financial inclusion Introduction Financial inclusion has come a long way. A little overarching Global Sustainable Development less than a decade ago, discussion in this area Goals that the agenda champions (specifically, centred almost entirely around microcredit—small Ending Poverty; Ending Hunger; Gender Equality; loans allowing entrepreneurs at the bottom of the Sustainable, Inclusive Economic Growth, and pyramid to expand their activities. While still a Sustainable,
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