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1 Microfinance in Emerging Markets: Lesson from Peru July 2014 Department of Economics Center for International Policy Studies Fordham University Universidad Antonio Ruiz de Montoya, Peru Prof. Erick W. Rengifo Email: [email protected] Website: www.fordham.edu/economics/rengifo Number of credits: 4 Number of Contact Hours: 60 The aim of this course is to present the basic concepts related to microfinance, its origins and evolution, analyzing the successful Peruvian experience. The class will also analyze and compare the main Latin American microfinance models and try to find the main reasons of why the Peruvian model has succeed. It will review how Microfinance institutions (MFIs) are organized and how they differ from the banking sector providing loans to micro-entrepreneurs. The class will present a detailed analysis of MFIs in Peru, its results in terms of micro-business development and its impact on development and social inclusion. It will present the products and instruments used and how Peruvian MFIs make them attractive and accessible for their clients and at the same time profitable allowing them to create a self- sustainable business model. The course will have three components that make it a complete one: a theory part, an applied one and a conversational Spanish part. The theoretical part will be taught in our partner institution (Universidad Antonio Ruiz de Montoya) in Lima. It will present the tools and techniques that will allow the students to think strategically when facing financial problems inside or outside a given microfinance institution (MFIs). It also will provide basic risk management tools applied by microfinance institutions. In this part of the course, Peruvian experts will present different topics related to microfinance that will provide a view on what is actually happening, some insights about the problems that the MFIs face and how they see microfinance evolving in the mid and long term. In the second part, students will be involved in understanding the practical issues that MFIS face in their daily activities. Students will have the opportunity to do mini-internships in several successful MFIs in Lima and other main cities. Finally, and as part of the class, our partner university in Peru will provide conversational Spanish to all the students that participate in this course. During the last day of class, students will discuss what was learned about the Peruvian experience in microfinance and how this can be replicated in other countries (including the USA). It will include a panel of specialist that will guide them in the conversations. Course Requirements This class is open to undergraduate students of any field, interested in microfinance. It is also open to graduate students.

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Page 1: Microfinance in Emerging Markets: Lesson from · PDF file1 Microfinance in Emerging Markets: Lesson from Peru July 2014 Department of Economics Center for International Policy Studies

1

Microfinance in Emerging Markets: Lesson from Peru

July 2014

Department of Economics

Center for International Policy Studies – Fordham University

Universidad Antonio Ruiz de Montoya, Peru

Prof. Erick W. Rengifo

Email: [email protected]

Website: www.fordham.edu/economics/rengifo

Number of credits: 4

Number of Contact Hours: 60

The aim of this course is to present the basic concepts related to microfinance, its origins and

evolution, analyzing the successful Peruvian experience.

The class will also analyze and compare the main Latin American microfinance models and try to

find the main reasons of why the Peruvian model has succeed. It will review how Microfinance

institutions (MFIs) are organized and how they differ from the banking sector providing loans to

micro-entrepreneurs. The class will present a detailed analysis of MFIs in Peru, its results in

terms of micro-business development and its impact on development and social inclusion. It will

present the products and instruments used and how Peruvian MFIs make them attractive and

accessible for their clients and at the same time profitable allowing them to create a self-

sustainable business model.

The course will have three components that make it a complete one: a theory part, an applied one

and a conversational Spanish part. The theoretical part will be taught in our partner institution

(Universidad Antonio Ruiz de Montoya) in Lima. It will present the tools and techniques that will

allow the students to think strategically when facing financial problems inside or outside a given

microfinance institution (MFIs). It also will provide basic risk management tools applied by

microfinance institutions. In this part of the course, Peruvian experts will present different topics

related to microfinance that will provide a view on what is actually happening, some insights

about the problems that the MFIs face and how they see microfinance evolving in the mid and

long term. In the second part, students will be involved in understanding the practical issues that

MFIS face in their daily activities. Students will have the opportunity to do mini-internships in

several successful MFIs in Lima and other main cities. Finally, and as part of the class, our

partner university in Peru will provide conversational Spanish to all the students that participate

in this course.

During the last day of class, students will discuss what was learned about the Peruvian experience

in microfinance and how this can be replicated in other countries (including the USA). It will

include a panel of specialist that will guide them in the conversations.

Course Requirements

This class is open to undergraduate students of any field, interested in microfinance. It is also

open to graduate students.

Page 2: Microfinance in Emerging Markets: Lesson from · PDF file1 Microfinance in Emerging Markets: Lesson from Peru July 2014 Department of Economics Center for International Policy Studies

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Even though the class is a self-contained one, previous background in finance or related areas is

important.

The classes will be taught in English. However, some Spanish language experience would help in

interacting with MFIs clients.

Grades

The grade will be based on:

Class participation 50%

Final Discussion 50%

Classroom Outline

The course has 30 hours of theory, seminars and panels.

Sessio

n

Lecture outline

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Basics of Financial Markets and Microfinance. Interest rates.

Inflation and exchange rates

Basics of Risk Management: Market, Inflation, Currency and Credit Risk

Strategically Planning in Microfinance Corporation

Microfinance Management in Peru: Experience and cases.

Negotiation and Conflicts Resolution

Microfinance Customer Service in a multicultural country

Social Reality and Microfinance in Latin America (SRMLA): Introduction

(SRMLA): Social Marketing

(SRMLA): Social Responsibility in Peruvian Microfinance System

(SRMLA): New products in Microfinance

(SRMLA): Insurance in Microfinance System

(SRMLA): Microfinance Personal Management

(SRMLA): Policy and Ethics in Microfinance Corporation

What we have learned from the Peruvian Experience

Intership

In addition to the theoretical classes, the course will have 30 hours of practical experience in the

Jesuit’s “Servicios Educativos El Agustino” (micro-business development) in Lima and in a couple of

other microfinance institutions in Cuzco (CCAIJO and Odebrecht). More information about the last two organizations can be found in: http://www.perurural.org/index.php?option=com_content&view=article&id=41:ccaijo&catid=3:directorio

-institucional http://www.odebrecht.com.pe/es

Page 3: Microfinance in Emerging Markets: Lesson from · PDF file1 Microfinance in Emerging Markets: Lesson from Peru July 2014 Department of Economics Center for International Policy Studies

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Pre-departure and Post-departure Requirements

Visa: No visa is required for traveling to Peru

Immunizations: None required since we will not travel to the jungle.

Page 4: Microfinance in Emerging Markets: Lesson from · PDF file1 Microfinance in Emerging Markets: Lesson from Peru July 2014 Department of Economics Center for International Policy Studies

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Travel Itinerary

Date Time Session Comments

June 30

(Saturday)

noon Travel to Peru

- Arrival time: midnight

- Sleep in University

accommodations

July 1

(Sunday)

All day Visit to Historical

Places in Lima

July 2

(Monday)

7:30-8:30

8:45-10:30

10:30-10:45

10:45-12:30

12:30-13:30

14:30-16:15

16:15-16:30

16:30-18:00

18:00-19:00

19:00-19:30

Breakfast

Session 1

Break

Session 2

Lunch

Session 3

Break

Spanish & boot camp

Dinner

Welcome by the Rector

of the Universidad

Antonio Ruiz de

Montoya.

July 3

(Tuesday)

7:30-8:30

8:45-10:30

10:30-10:45

10:45-12:30

12:30-13:30

14:30-16:15

16:15-16:30

16:30-18:00

18:00-19:00

Breakfast

Session 4

Break

Session 5

Lunch

Session 6

Break

Spanish & boot camp

Dinner

July 4

(Wednesday)

7:30-8:30

8:45-10:30

10:30-10:45

10:45-12:30

12:30-13:30

14:30-16:15

16:30-21:00

Breakfast

Session 7

Break

Session 8

Lunch

Session 9

Independence day

Celebration, Dinner and

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Visit to Miraflores and

Barranco

July 5

(Thursday)

7:30-8:30

8:45-10:30

10:30-10:45

10:45-12:30

12:30-13:30

13:30-19:30

20:00-20:30

Breakfast

Session 10

Break

Session 11

Lunch

First visit to SEA

Dinner

Students will visit a Jesuit

intuition in “Servicios

Educativos El Agustino”

(SEA), a marginal

neighborhood in Lima where

Jesuits are working with

micro-entrepreneurs.

July 6

(Friday)

7:30-8:30

8:45-10:30

10:30-10:45

10:45-12:30

12:30-13:30

13:30-19:30

20:00-20:30

21:00-24:00

Breakfast

Session 12

Break

Session 13

Lunch

Second visit to SEA

Dinner

Visit to a Pena (typical

Peruvian music and

dance)

Students will visit a Jesuit

intuition in “Servicios

Educativos El Agustino”

(SEA), a marginal

neighborhood in Lima where

Jesuits are working with

micro-entrepreneurs.

July7

(Saturday)

8:30-9:30

9:45-11:30

10:30-10:45

10:45-12:30

12:30-13:30

Breakfast

Session 14

Break

Session 15

Lunch

Free activities in Lima

July 8

(Sunday)

5:00-5:30

7:00

9:00-17:00

18:00-19:00

Breakfast

Flight to Cuzco

Visit several Historical

monuments in Cuzco

City

Dinner

Physical adaptation

July 9

(Monday)

7:30-8:30

9:00-17:00

18:00-19:00

19:00-19:30

19:30-21:00

Breakfast

Mini stage in Jesuit

MFIs (includes lunch)

Dinner

Debriefing

Conversations on

current issues (optional)

Students will be located in

hosting MFIs to observe and

participate daily MFI activities

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July 10

(Tuesday)

7:30-8:30

9:00-15:00

15:00-17:00

18:00-19:00

19:00-19:30

19:30-21:00

Breakfast

Mini stage in Jesuit

MFIs (includes lunch)

Boot camp

Dinner

Debriefing

Conversations on

current issues (optional)

Students will be located in

hosting MFIs to observe and

participate daily MFI activities

July 11

(Wednesday)

7:30-8:30

9:00-15:00

15:00-17:00

18:00-19:00

19:00-19:30

19:30-21:00

Breakfast

Mini stage in Jesuit

MFIs (includes lunch)

Boot camp

Dinner

Debriefing

Conversations on

current issues (optional)

Students will be located in

hosting MFIs to observe and

participate daily MFI activities

July 12

(Thursday)

7:30-8:30

9:00-15:00

15:00-17:00

18:00-19:00

19:00-19:30

19:30-21:00

Breakfast

Mini stage in Jesuit

MFIs (includes lunch)

Boot camp

Dinner

Debriefing

Conversations on

current issues (optional)

Students will be located in

hosting MFIs to observe and

participate daily MFI activities

July 13

(Friday)

All day Visit to monumental

Cuzco and main Inca’s

ruins

July 14

(Saturday)

All day Visit Macchu Picchu

July 15

(Sunday)

Morning

Afternoon

Midnight

Return to Lima

Free time

Flight to NY