ACKNOWLEDGEMENTS
TABLE OF CONTENTS
LIST OF FIGURES AND TABLES
ABBREVIATIONS AND ACRONYMS
ABSTRACT
GOAL AND THE ARCHITECTURE OF THE WORK

1	WORLD'S POVERTY, DIFFERENT INSTRUMENTS OF ITS ERADICATION AND THEIR VALUATION

1.1.	GLOBAL POVERTY AT PRESENT

1.1.1.

Definition of poverty

1.1.2.

Measurement of poverty

1.1.3.

Geography of poverty

1.1.4.

Development and latest trends of world's poverty

1.2.	FOREIGN AID AS A TOOL OF FIGHT AGAINST POVERTY

1.2.1.

Structure of foreign aid

1.2.2.

Evolution of foreign aid

1.2.3.

Foreign aid efficiency

1.3

NGOS

1.3.1.

Historical background of NGO emergence

1.3.2.

NGOs as important players in the confrontation of poverty

1.3.3.

Recent trends of NGOs evolution

1.4.	MICROFINANCE AS A STRATEGY OF POVERTY REDUCTION

1.4.1.

Microfinance Institutions

1.4.2.

Evolution of microfinance

1.4.3.

Impact of microfinance in the poverty reduction

1.5.	GENERAL INSUFFICIENCIES OF CURRENT APPROACHES

1.5.1.

The insufficiency of microfinance approach

1.5.2.

The insufficiency of assistencialist approach

1.5.3.

The insufficiencies of development NGOs

1.5.4.

Lack of a global conception

2	POVERTY RELATED ISSUES IN MEXICO AND HUMANITARY ORGANIZATION WORLD VISION

2.1.	POVERTY IN MEXICO

2.2.	WORLD AID TO MEXICO

2.3.	NGOS IN MEXICO

2.4.	MICROFINANCE IN MÉXICO

2.5.	WORLD VISION INTERNATIONAL AND ITS IMPACT IN MÉXICO

2.5.1.

World Vision International

2.5.1.1.

Area Development Programs – Assistencialist help for the poor

2.5.1.2.

Microenterprise Development - VW microfinance programs

2.5.2.

World Vision México

2.5.2.1.

Area Development Projects in WV Mexico

2.5.2.2.

Fundacion Realidad

3	INTRODUCTION OF A NEW ORGANISATIONAL STRUCTURE IN WORLD VISION MEXICO

3.1.	REASONS FOR INTRODUCTION OF THE NEW ORGANIZATIONAL STRUCTURE

3.1.1.

The necessity of a global performance

3.1.2.

The necessity of joint microfinance and assistencialist action

3.1.3.

The necessity of systematic research

3.2.	THE PROJECT DEPARTMENT IN WORLD VISION MEXICO: A NEW MECHANISM OF COMPLEX APPROACH TOWARDS POVERTY

3.2.1.

Structure of the Project Department

3.2.1.1.The Operations Division

3.2.1.2.

The Research Division

3.2.1.3.

The Fundraising Division

3.2.1.4.

The Business Administration Division

3.2.2.

The relationship of the Department towards WVM and Fundacion Realidad

3.3.	EXAMPLES OF APPLIED STRATEGIES

3.3.1.

Projects of commercialization, shown on the example of “Producers from the Sta. Catarina Valley”

3.3.2.

New strategies, shown on the proposal of „Pro-poor tourism“

3.3.3.

Impact led internal changes, shown on the example of “WVM Demand shift”

4	CONCLUSION

5	APPENDICES

6	BIBLIOGRAPHY

1.4.2. Evolution of microfinance
Microfinance arose in the 1970s and 1980s as a response to research findings about efficiency of credits given to poor farmers, subsidized by government institutions. In the 1980s the governments, offering cheap, subsidized credits, became the object of criticism, because of the inefficiency of most programs. This failure led to a development of a new approach called microfinance. Emphasis shifted from the provision of subsidized loans to target populations towards the building up of local, sustainable institutions, based upon strict economic principles.
By the end of 1970s, Grameen Bank in Bangladesh and ACCION International in Latin America have developed a pioneer variety of methodologies that achieved loan repayment rates above 95% and in some cases higher profits than traditional commercial banks.71 Up to that moment, most development credit providers believed that poor clients belong to a credit high-risk social group, because they operate in environment with poor market infrastructure and deficient business culture or because they lack practice in the rules of formal finance or even because their moral is wicked.72
Since the 1980s, the field of microfinance has grown substantially. The World Bank estimates that there are now over 7000 microfinance institutions, serving some 16 million poor people in developing countries. Worldwide, there are 13 million microcredit borrowers, with USD 7 billion in outstanding loans, and generating repayment rates of 97 percent, while the annual interest rate varies between 25 % to 120 % annually.73 Only three countries, Bangladesh, Bolivia and Indonesia, have relatively wide reaching microfinance networks. Microlending has progressed to the greatest extent in the Asian region, with 70% of current customers worldwide.
In the recent years, the enthusiasm for microfinance as a strategy for poverty alleviation is rapidly growing. The approximate growth rate of microcredits provided is 37 percent a year.74 Nevertheless a more coordinated and concerted international effort is required if microcredit is to spread and succeed on the global scale. Under this perspective, the World Bank has led the process of international coordination by establishing the Consultative Group to Assist the Poorest (CGAP), which brings together a number of western donor countries and international agencies.75 There is also a global campaign underway, known as "Microcredit Summit" led by some of the largest donor organizations in the world, planning to extend the reach of microfinance to 100 million of the world's poorest microentrepreneurs by 2005. It should be noted however, that out of approx. 7,000 microfinance organizations or programs worldwide there are less than one hundred that could claim to be financially self-sufficient. 76
1.4.3. Impact of microfinance in the poverty reduction
Microfinance has proven to be an effective and popular measure in the ongoing struggle against poverty, enabling those without access to lending institutions to borrow money and start small businesses. Microcredit develops new markets, promotes a culture of entrepreneurship and provides loans, without any subsidizing interventions. At the individual level, microenterprise help elevate personal income and improve the individual’s control over resources and household decision making-processes. Microfinace reduce household vulnerabilities to risks and external shocks, diversificate income sources. At the community level, microenterprises can contribute to growth by bringing in income from outside the community, generate employment, preventing income from leaving the community, stimulating market linkages, providing lower cost of goods and services. Microcredit has also a positive impact on some aspects of women’s empowerment, ranging from social issues to ownership, mobility, by increasing their access to independent income and control over own assets.
About 21 percent of the Grameen Bank borrowers and 11 percent of the borrowers of the Bangladesh Rural Advancement Committee, a microfinance NGO, managed to lift their families out of poverty within about four years of participation.77 Extreme poverty declined from 33 percent to 10 percent among Grameen Bank participants, and from 34 percent to 14 percent among Bangladesh Rural Advancement Committee participants.78 A 1988 sample survey of Desa borrowers showed, that microcredit has had a major impact on their families' standards of living as the net household incomes of borrowers increased by about 76 percent and employment increased by 84 percent within three years of program participation.79
Growing evidence demonstrates generally positive effects on household production and incomes, asset accumulation and consumption.
Nevertheless, most MFIs do not offer products and services that are attractive to the category of the very poorest ones.81 The results of the empirical studies seem to suggest that the microfinance programs aids so the richest segment of those considered poor, since high number of the institutions exclude the “poorest of the poor” or allow only a very small percentage to take part in their schemes.82
While lack of access to credit can be undoubtedly a cause for rural poverty, the general causes of poverty are complex and dynamic and cannot be simply reduced to lack of credit.83 The MFIs have proved that the poor can become solid bank clients and that MFIs are able to encourage development. Nevertheless, despite they do not help all the poor and certainly cannot fully remplace primary care aid programs such as health, water projects and education.

1.5. General insufficiencies of current approaches
In recent years, the development NGOs are step by step recognising their lack of a holistic approach and insufficiency of their fragmented working methods.84 Although being a very important tool, microfinance does not suffice, because it doesn´t well target the poorest of the poor. In contrast, assistencialist approaches take care of those neglected by microfinance, but do not have ways how to efficiently support the productive poor in a sustainable way. Moreover, although the globalising forces do influence local life, a reverse view of global society looking for global support of local problems, is not applied. In general, the development organizations do not work efficiently, since a trend towards systematic adaptation to changes, nor capacity for offering new instruments and perspectives are not visible.