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17 and 18 April 2012, Lima, Perú.

In April 2010, the Firs Latin American Forum on Social Performance “Implementing the Mission” was held in Nicaragua. Participants shared methodologies and tools that were being in Social Performance Management (SPM) along with results achieved by Microfinance Institutions (MFI) in Latin America.

Since 2010, more than a hundred Latin American MFIs have implementing SPM as an institutional strategy. This has allowed then to reach the poorest, measure their social objectives, and implementing a set of tools aimed at achieving of development of clients/partners.

In recent years, at the global level, many international development agencies, credit rating agencies, governments, microfinance networks, and social investors have promoted Social performance for microfinance institutions through diverse technical initiatives that are coordinated by the Social performance Taskforce (SPTF). In November 2011, the Global MicroCredit Summit, held in Valladolit, Spain, noted that the microfinance industry is facing adverse creditability related to some negative effects from microcredit model. Discussion therefore focused on “poverty reduction and development”. A proposal was introduced to create a system of “Seals of Excellence” for poverty reduction. In our region, several governments, such Bolivia, Ecuador, and Nicaragua, have decided to formally include social performance in their supervision models to be able to measure the social impact of their MFIs´work.

This recent evolution of microfinance in the region has positioned social performance as a strategic component of MFIs and as part of the identity of organizations using a development approach; i.e., MFIs are now incorporating Social Performance into their daily practices to improve their interaction with clients, improve personnel motivation, design of new financial products, and demonstration of their social responsibility to their communities. Social performance is being translated into better management of clients´ needs, as the clients´ development of clients is placed at the center of the institutions-client interaction, without jeopardizing the business viability of the financial institution.

In that framework, it is appropriate to continue with learning exchanges, evaluation and dissemination of experiences, and analysis and publication of social performance management results for MFIs in Latin America. This process of exchanges and dissemination of experiences will be promoted through the Latin American Forum on Social Performance, led by REDCAMIF, FOROLAC and the MISION II Program.

The main objective of the Second Latin American Forum on Social Performance Management is to share advances and achievements in the implementation and integration of social performance in microfinance institutions in Latin America, as well as to further strategies to achieve better results and practices for the benefit of their clients/partners.

The specific objectives of the Second Latin American SP Forum are: