Using PPI to assess pro-poorness of project activities: experiences from the Katalyst Project in Bangladesh

There is increasing demand for showing results and poverty impacts of private sector development projects. This article suggests that projects can respond to this demand through use of the Progress out of Poverty Index (PPI) developed by Grameen Foundation USA for almost all developing countries. PPI is an easy-to-use tool, based on 10 questions, that takes 5-10 minutes to administer and allows one to assess the poverty profile of the interviewee accurately and simply. The article discusses the case of Katalyst, an M4P (making markets work for the poor) project in Bangladesh that has used PPI and surveyed over 4000 farmers and SMEs. Katalyst's experience of rolling out the systems is shared, giving the details of what was measured, how it was measured, the conclusions drawn, and how it has been useful both for internal management and external reporting. The article concludes with how other projects and donors can benefit from using PPI.