CAF brings Poverty Stoplight to Bolivia as a pioneering tool for social innovation

With support from CAF—development bank of Latin America—, Diaconía, a Bolivian financial Institution for development, will implement a groundbreaking tool for overcoming poverty among its micro-finance clients called Poverty Stoplight. This tool has been developed by Fundación Paraguaya, a social organization in Paraguay, and supported by Locfund, a local currency financing fund for micro-finance institutions in Latin America and the Caribbean, managed by BIM Ltd.

The Poverty Stoplight is a social innovation tool that allows families to measure their level of poverty and identify customized strategies to address their specific needs, together with the public and private sectors. The Stoplight breaks down the overwhelming concept of poverty into smaller, more manageable problems that can be solved with specific actions. Thus, families are the main protagonists of the elimination of poverty, from self-assessment to implementation of solutions (with guidance and assistance).

The launching ceremony of the Stoplight in Bolivia was held at the CAF Auditorium in La Paz and was chaired by the CAF representative in the country, Gladis Genua, who pointed out that “the Stoplight is a powerful social innovation tool that complements the traditional poverty measurement methodologies with new social and psycho-emotional variables, while empowering vulnerable groups in measuring and improving their own situation.”

The ceremony was also attended by Claudia Daza from Diaconía, Roberto Giménez, Program Manager at Fundación Paraguaya, and Fernando Sánchez, CEO of BIM Ltd.

The Stoplight is already being used by thirteen microfinance institutions in Latin America and replicated in other countries like Mexico, Chile, United States, United Kingdom, Papua New Guinea and Taiwan.