Programme de bourses "Jeunes Chercheurs"

The local meaning of money as a challenge to the social performance of microfinance institutions: the case study of the microfinance industry in Ogou region, Togo

Edoé Djimitri Agbodjan, The Graduate Institute of International and Development Studies - Geneva

The social performance of microfinance remains a controversy, despite the definition and management tools produced by researchers and donor groups such as the Social Performance Pathway developped by the Consultative Group to Assist the Poor (CGAP- World Bank), and the Social Performance Indicators (SPI) created by CERISE. For some authors, the definition is unusefully broad, even dangerous for the institutions themselves, since it can distract them from their financial mission (Jacquand, 2005). Nevertheless, the conceptual and strategic link between microfinance and poverty alleviation remains so strong that microfinance institutions (IMF) are facing a steady pressure to adopt social performance management tools. The Togolese microfinance industry is a prime example of such a situation, as shown through the case of the region of Ogou. The region has faced an unprecedented economic downturn due to the Togolese political crisis (1990-2006). The unemployment rate rose up to 60% after the collapse of the four main companies that underpinned the local economy. To cope with the mass lay-offs, the population has engaged in small trade businesses such as moto-taxi, foods purchase-conservation and re-sell, or spares trading. The need for capital or cash-flow for these micro-economy initiatives pushed up the microfinance industry. In 2008, the Government developed a programme for the promotion of microfinance that is included in the Poverty Reduction Strategic Papers (PRSP). It represents 0,26% of GDP, or 9 633 million CFA (République Togolaise, 2007). This does not include the 19 700 billion CFA planned for the National Strategy to Promote Microfinance over the period 2008-2012. In April 2009, for example, the biggest IMF of the region, FUCEC-Togo, signed an agreement with the government for the disbursement of financial services to the unemployed. However the effective way to insert this mission and objective into a strategic framework and the ability to reach the target population and deliver the appropriate products still constitute a core challenge.
From a management perspective, the social performance initiatives tackle this issue by producing tools that improve social objectives management along with financial management. They acknowledge that IMFs ought to be sensitive to their social environment; however, by focusing on management, they barely discuss how aspects of the local rules and norms of exchange, induced by the local undertandings of money, challenge the social performance efforts of the IMFs.

Objective of the research:
This research aims at providing a reflection on the link between social performance and money. It will analyse the diffculties faced by IMFs while improving their social performances, by considering the local interpretation of money.

Objective of the field research
In line with contemporary interdisciplinary theories on money (Theret, 2007; Bloch & Parry, 1999; Aglietta & Orlean, 1998), this research is based on the assumption that money is an institution, a specific medium of communication and an object of exchange. Accordingly, the field research has two goals. First, it will allow us to interview various actors, to observe money exchange practices, and to collect information from institutions involved in individual debt regulation (e.g. traditional and modern courts), in order to understand local interpretation of money. Second, we will collect financial data (e.g. financial statements), policy statements, strategic frameworks etc. from the IMF and the institutions of supervision. Both qualitative and quantitative data sets will allow us to analyse the social performance strategy of IMFs and to discuss how the mission, objectives, values etc. carried by money challenge microfinance.

References

• Aglietta, M. & Orlean, A. (1998) La monnaie souveraine (Paris, Odile Jacob)
• Bloch, M. & Parry, J. (Eds.) (1999) Money and the Morality of Exchange (Cambridge, Cambridge university Press).
• Doligez, F. & Lapenu, C. (2006) Les enjeux de la mesure des performances sociales, (IRAM-Université de Rennes 1, CERISE).
• Jacquand, M. (2005) « La mesure de la performance sociale : la mauvaise priorité », Microfinance Matters, 15, (FENU) consulté le 26 mars 2009 sur le site : http://www.uncdf.org/francais/microfinance/pubs/newsletter/pages/2005_08/news_measuring.php
• République Togolaise (2007) Stratégie intérimaire de réduction de la pauvreté (Lomé, République Togolaise)
• Théret, B. (2007) La monnaie dévoilée par ses crises (Paris, Edition de l’Ecole des Hautes Etudes en Sciences Sociales).

Doctoral researcher

Edoé Djimitri Agbodjan
15, rue du Prieuré
1202 Genève
Suisse
E-mail : djimi6@yahoo.com

Supervisor:
Professor Jean-Michel Servet
The Graduate Institute of International and Development Studies – Geneva
E-mail: jean-michel.servet@graduateinstitute.ch

Partners 

Université de Lomé (Togo)
Faculté des Sciences Economiques et de Gestion (FASEG)
B.P. : 1515
Tel: (228) 225 50 70
E-mail: faseg-ub@tg.refer.org

Vice-Doyen de la Faculté:
Dr Mensah Anani
E-mail: amensah@tg.refer.org

Responsable du Département de Troisième Cycle et Recherche :
Professeur Kako Nubukpo :
E-mail : kakonubukpo@yahoo.com

Faîtière des Coopératives d’Epargne et de Crédit du Togo (FUCEC-Togo)
Coopec- Novissi
B.P 190  Atakpamé – Togo
Tel: (228) 440 03 90
Fax: (228) 918 80 64
E-mail : abaidrissou@yahoo.fr