Presentation to IPAC National Annual Conference Guardians of our Communities: Local to Global

1. Presentation to IPAC National Annual Conference Guardians of our Communities: Local to Global Community Finance = Money serving people Lise Veilleux Ottawa, August 2010

2. Presentation • DESJARDINS & DID (Development International Desjardins) • Burkina Faso Economy • Microfinance sector in the economy of Burkina Faso • Lessons learned : • Accessibility, • Local assets (Ownership institution for a long term vision) • Savings: Driving force, trust in ourselves • Loans : Shift for empowerment by Group or Individual Loans • Specialized loans • Others services • Computerization • Conclusion

3. The working class continues to endure the harshest working conditions. (…) Women are forced to work in order to add to family income, and it is not rare to see children also contribute. In general, people work ten hours a day, six days a week. (…) Since government social measures are almost non-existent, people can only find help through charity or family solidarity. • Description of life in Québec in the 1890s • (Desjardins, 100 years of History) • Alphonse Desjardins recognized as the father of the North • American savings and credit cooperative movement. • 1900 Opening of the first caisse populairein Lévis, and after • 136 in Québec - 18 in Ontario- 9 in the U.S.

4. Desjardins Mission To contribute to the well-being of individuals and the economic and social development of their communities within the compatible limits of its field of activity by: • developing an integrated cooperative network of sound and profitable financial services, owned and administered by members, and a competitive, member-controlled network of complementary financial companies • teaching democracy, economics, solidarity and individual and collective responsibility, especially to members, officers and employees.

5. Évolution Of Desjardins Network (Cooperatives, Members and Assets)) 7 000 160 6 000 140 1 372 1 329 1 293 1 227 5 000 120 Cumulative Assets 1 077 NoCaisses 100 972 Assets en millions (CAN$) 4 000 Number of members 80 No Members 3 000 60 544 527 2 000 40 201 1 000 145 20 114 0 0 1915 1920 1930 1940 1950 1960 1970 1980 1990 2000 2006 5

6. Today: • 5.8 million members(78%population) • 1600 points of service • Assets worth $163 billion • 42,000 employees • 6,300 board members • Network of subsidiaries associated with the network and owned by the cooperatives • The largest integrated cooperative financial group in Canada, offering a complete range of financial products and services to individuals and enterprises. • The remainder of the market is divided among the 6 largest Canadian banks and new competitors. As of December 31, 2009

7. 40 years of experience DID is active on four continents

8. Project ReinforceGovernanceCapacity of APIM-BF « Le fleuve fait des détours parce que personne ne lui montre le chemin. » Proverbe gabonais « The river makes turnings because nobody shows the way to go . » Gabon Proverb

9. Burkina Faso • One of the poorest countries in the world • Pop: 16 million • GDP /capita 1200$ • 77% Unemployment

10. Microfinance en Burkina Faso Numbers of institutions Numbers of clients Loans Savings

11. 1- Accessibility: First StepA solution to an ever present need: In developing countries 80% of the population do not have access to financial services. • Access to financial services is a powerful tool for development. • Studies show a direct correlation between mobilizing local savings and economic development. • All economy needs Money$, Workers & Dynamism

12. 2- Local Assets: Long term vision • Create in 1975 • Network: 135 coop, 5 unions, 1 fed • 1.4 million members and clients (9% of the population) • 873 employees (70% women) • 1,590 directors (29% women) • Assets worth over CAN $183 million • CAN $132 million in savings deposits • CAN $121 million in loans • Average loan of CAN $717 • Average saving of CAN $ 94

13. 3- Savings Access and also include educate to financial services empowers individuals enabling them to take control of their own development. This makes it a true springboard to autonomy.

14. 4- Group loansWomen constitute a large share of those excluded .They represent great potential for the creation of self-sustaining jobs. Example 4- Individuals loans Individualsbreak out of fragile circumstances and begin to build assets and their own work and incomes

15. 5- Specialized Loans Micro, Small and Medium entrepreneurs. • Creation of CFE (Financial Entrepreneurs Center) Managing and/ or operating • The business model proposed stands out on the market by its emphasis on the transfer of competencies and ownership.

16. 5- Agricultural Loans For 1.1 billion people that are living in extreme poverty, economic growth based primarily on agriculture and on non-farm rural activities is essential to improve their livelihoods. Important understand the level of agricultural production in the zone served are developed before establishing the loans conditions. (Highest knowledge = Less risk)

17. 5- HousingLoans Familiesare able to: • build up small savings • obtain housing loans corresponding to their needs • improve their living conditions.

18. 5- HousingLoansImpacts: • Reduce poverty • Give more security and stability to the family (sickness, die, unemployment • Reduce vulnerability against : inflation, crisis, exchange rate • Higher social status and solidarity • Focus in a better administration • Create an indirect pension plan • The future generation will be less poor

19. 6- Specialized Services Life and invalidity insurance Savings in relation with Scholarship loans

20. 7- Computerization • Necessity +High Volume of • transactions + Average • amount of saving and loans • Increased productivity • Reduced operational risks • Improved credibility

21. « Ce que tu ne dis pas parle tellement que je ne comprends pas ce que tu dis. » Anonyme “What you do not say speaks so much that I do not understand what you say. » Anonymous Microfinance Place ! Wecan do a lot more ?

22. Conclusion and Our Convictions • Access to financial services is a necessary condition for the development of individuals and communities. • Finance can be a powerful tool for empowerment for people who are excluded from the classic financial system. • Locally-owned community finance institutions provide essential leverage • Community finance growth strategies must make it possible to develop local assets. • Developing community assets: a springboard towards autonomy

23. « L’action sans vision n’est que perte de temps. La vision sans action n’est que rêverie. »  Anonyme “The action without vision is only waste of time. The vision without action is only daydream. » Anonymous