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1) Global poverty seems to be the root cause of social and political upheavals across the globe today. How in your opinion can the international community work for poverty alleviation and hence make the world a better place to live?

Ø Poverty alleviation cannot depend entirely on charity, international aid and/or financial and material handouts. Dealing with poverty these ways does not address underlying issues and hence, does not secure peace on earth. The international community needs to understand these underlying issues, its causes and dimensions, and address them in a manner that packages financial assistance with tools to lift people out of poverty while offering sustainable livelihoods. At the country level, there needs to be effective interactions with government stakeholders, incentives to promote good governance and successful implementation, as well as sustainable private-public partnerships. At the business model level, a host of context-related issues need to be focused on - such as a proper analysis of the particular socioeconomic and demographic environment - to ensure that only those development models with high chances of success move forward and, most importantly, on a sustainable basis. Also, the international community needs to push for streams that complement direct interventions intended to alleviate poverty. Such streams can be categorized into services/sectors such as education, healthcare, financial, agriculture and livestock and public administration. The lack of access to these services causes poorer populations to burden the development of a country. Ensuring access means that the transfer of knowledge, skills and innovation [technological, product, delivery] will contribute to better utilization of financial assistance and nurture the much needed mindset for uplift.

2) Speaking about the developing societies, do you agree that the poor of the developing world are imprisoned in the trap of international aid? Can you please share with us some examples to support your view?

Ø Projects dependent on donor aid have short shelf lives and do not adequately plan for sustainability past their expiry dates. Therefore, a program doing good work in a community will cease to function once it loses funding, as will the service being provided to that community. Many good projects and interventions have met and continue to meet this fate in Pakistan. Since aid cannot be perpetual, there is a need to develop a more sustainable development mechanism. Communities need to be incentivized towards self-sufficiency or they face remaining dependent on donor driven agendas and projects. NGOs and aid recipients in general, are perceived to design projects that cater to the donor’s agenda as opposed to being needs-driven or community-driven. As a result, the actual needs of the poor either go unmet or, at best, are met temporarily with no built-in mechanism for sustainability. In some cases, international aid is in the form of loans leading to the inevitable debt trap on account of poor governance, misuse of funds [i.e. for emergencies/consumption as opposed to productive purposes], among other issues – not least of which is aid being siphoned off by interceptors and other middle-men or organizations.

3) How important is democracy (vis-à-vis freedom) in promoting a friendlier social entrepreneurship in a country?

Ø The atmosphere of democracy, and the greater social and financial freedoms that goes with it, feeds directly into encouraging social entrepreneurship in the country. As a general rule, in directly elected governments, there is greater pressure on public representatives to develop communities and bring sustainable livelihoods to the areas they represent. This encourages them to not only initiate more traditional infrastructure-based projects, but also to seek and promote more “out-of-the-box” thinking in designing projects that bring development to local people. Therefore, they look towards social entrepreneurs who are able to deliver economic as well as social benefits to the region.

4) Can you briefly highlight Tameer Microfinance Bank's investments and projects to alleviate poverty and transform lives?

Ø Over the past five years, Tameer Bank has introduced a number of transformational changes within the Microfinance industry. Tameer is contributing towards all of the millennium development goals with special emphasis on financial inclusion.

At present only 13 percent of Pakistan’s population is provided for by the commercial banking industry. It is Tameer's goal that at least 70 percent of the population will be able to access financial services by 2015. With the introduction of Easypaisa, a branchless banking solution that can work for everybody but is designed for the unbanked, Tameer along with Telenor are set to change the financial ecosystem. In the past six months, Easypaisa has completed over 7 million transactions such as over the counter utility bill payments, over the counter domestic remittances, creation of mobile wallet accounts and international remittances. With over 10000 Easypaisa outlets, Tameer has brought banking services to the customer’s footsteps.

Tameer is the only Microfinance Bank which provides the majority of its loans on an individual assessment as opposed to group basis. Tameer's average loan size is twice the industry average. With disbursements in excess of Rs. 400 million every month, we have introduced a much needed individualized model to the industry. Tameer is also cognizant of the savings requirements of microfinance customers. It is the first bank in the industry to launch a deposit saving certificate with a denomination of Rs. 5000 for women and Rs. 10000 for men. With a monthly interest rate of 13.34 percent, we provide customers with the highest rate in the industry.

5) What strategies in your opinion can be used today to bring about a positive change in the life of the poor of the developing nations across the globe?

Ø In order to provide a positive change, a holistic view must be adopted. Four basic requirements need to be met if any sustainable change is to be made:

Firstly the solution must be scalable. The high cost of distribution of the conventional banking model (bricks and mortar) cannot deliver cost-efficient services to the poor. Hence, a branchless banking model is the only solution.

Secondly, in order for other players (Telco's, Banks, Retailers) to enter the branchless banking world, an enabling environment must be in place. Effective regulations covering branchless banking by the State Bank and Pakistan Telephone Authority (PTA) Bank must be clearly defined.

Thirdly, the solution must, over a period of time, be financially sustainable. Solutions that are totally dependent on donors or are heavily subsidized run the risk of harming rather than helping the poor.

Lastly, the services and solutions (loans, savings, money transfers, health, life and livestock insurance) should be tailored for the needs of the poor. The barrier of entry must exist in line with the target market.

A highly successful example of the coordination of these elements is Easypaisa's over the counter domestic remittance service. Working with the State Bank, a “Know Your Customer” and anti-money laundering regulation was formulated reflecting the risk associated with a Rs. 10000 transfer per month. A user only has to go to an Easypaisa outlet (over ten thousand in number and open till late night) with his or her Computerized National Identity Card (CNIC), the CNIC card number of the beneficiary and the amount of cash to be transferred. A simple one page information sheet requiring five minutes needs to be filled in the first time. An account need not be opened and the user does not have to be a Tameer or Telenor customer. The transaction is secured by a Pin code which the user creates. Once the transfer is made, the user gets an SMS message (regardless of the Telco provider) and a physical receipt on Tameer Bank’s paper. The transfer is instantaneous and available at any of the 10000 Easypaisa locations. This service was tailored for the unbanked, is within the branchless banking regulations, is financially sustainable and has already demonstrated scale. In the month of August more than Rs. 1 billion was transferred with an average transfer size under Rs. 10000. Thus demonstrating, that when all the requirements are met, a transformational service is possible.

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