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United Nations Capital Development Fund - Microfinance

"Innovating from Experience - Gender Initiatives in Microfinance" : Table of Contents

Boxed Text: The Presentations

Box 4: Helzi Noponen, Activists for Social Alternatives (ASA)

The Internal Learning System (ILS) is a tool for ongoing participatory impact assessment which seeks to contribute to learning on the part of the organization’s staff and clients, strengthening relationships among stakeholders, improving participant understanding and analysis skills, and informing advocacy efforts. The system is made up of a series of picture diaries filled out by people at various levels within the institution including members, groups, staff and branch level. Each diary is used to collect information on a diverse array of indicators.

All levels participate in the same five core tasks: 1) collecting information, 2) assessing change in the information over time, 3) analyzing causes of change or troubleshooting, 4) planning or making decisions based on this learning, and 5) sharing their results with others. In this way, the findings are linked to a user-driven planning and training process, which encourages appropriate programmatic and client-level responses to the results of the assessment. The ILS process focuses on understanding what is working and what is not working, for who and why at all levels.

ILS was developed in India over a number of years and has been successfully field-tested with five NGOs there. NGO staff members have used resulting impact and process information to improve programme operations through accurate needs assessment, better monitoring, and product innovation. For example, in one NGO, women were repeatedly recording diversion of their business loan to consumption use in their diaries, specifically for the purchase of school supplies and uniforms. The group’s planning solution was to create a special savings instrument for members with school-age children that would be cashed in at the beginning of the school term.

The diaries have become tools that have helped women satisfy practical as well as strategic needs. In Kerala, women began to carry their diaries to community meetings, showing them to local officials to prove their eligibility for government services and grants. Using the diaries, women successfully lobbied for electricity connections, livestock, weaving looms, and cement houses. The use of ILS diaries has had a strong catalytic effect in increasing women’s confidence and motivation to improve their situation. In the same Kerala NGO, there has been a marked decrease in the incidence of domestic violence and male addictions and non-support for members using ILS, as women began to discuss and act around the common problems recorded in their diaries.

Ms. Noponen warns that organizations should not attempt to undertake ILS unless they enjoy a culture that welcomes open discussion of shortcomings and challenges. If the organization is more interested in proving programme impact than improving operations, ILS is likely to waste both its time and resources. One of the advantages of ILS is that organizations that have carefully analyzed their capacities can tailor the system to their needs as they grow and change.

For more information on the Internal learning System, download this pdf file.