A Microfinance Training Simulation: Client Risk and HIV/AIDS and the Challenges of Mutual Guarantee-Based Programs
This exercise is designed to stimulate thinking and discussion about how risks and costs are shared through mutual guarantee mechanisms used in microfinance. It illustrates that risks and costs are transferred to neighbors, friends, and the most economically active (but also poor) members of the community. Moreover, the lesson illustrates vividly how the risks and costs facing borrowers increases in an HIV/AIDS-affected environment, where households face extreme and often unanticipated changes in their financial capabilities and needs.
This training packet contains the following sections:
Section I provides a brief description of the Simulation: its structure, lessons, and required preparation.
Section II provides the trainer with important background information needed to prepare for the Simulation.
Section III describes how the Simulation is actually conducted: it outlines the facilitator tasks from start to finish, and provides a view of what happens in each round of play.
Section IV provides suggested information for the facilitator to use in introducing the Simulation, and then in leading a discussion after the Simulation ends.
Section V briefly describes modifications and extensions to the Simulation.
Section VI provides the “hardware” for the Simulation: instructions in preparing player envelopes, scripts for each part in the simulation, money templates needed to create the player envelopes, and the master math worksheet.