MICROFINANCE MATTERS - The International Year of Microcredit Celebrates Entrepreneurs Across the Globe

Her Royal Highness Princess Maxima of the Netherlands greets GMA winners Xu XiaoEn of China and Milkov Machaca Valenzuela of Peru at the UN Global Microentrepreneur Awards Gala in New York

Microentrepreneur Shakila Sarajulldin of Afghanistan accepts award from Jennifer Lopez

Chelsea Clinton looks on as Shamima Kathun of Bangladesh accepts her award

Sierra Leone’s Mama Fatu Kanu thanks Christina Barrineau, Chief Technical Advisor to the International Year of Microcredit

The Global Microentrepreneurship Awards (GMA) Programme is one of the hallmark initiatives of the International Year of Microcredit, and serves to celebrate and reward outstanding microentrepreneurs around the world. By placing the microentrepreneurs themselves on center stage, the GMA Programme increased the visibility of microentrepreneurs to national governments, the private sector and donors alike, bolstering investment in microfinance across the globe. The GMA Programme expanded from eight participating countries in 2004 to 30 countries in 2005, and brought together thousands of microfinance clients, students, private and public sector professionals, celebrities, senior government officials and UN agency staff around celebrating the tremendous dedication and commitment of poor and low income entrepreneurs.

GMA Programmes in the 30 participating countries received over 3,350 nominations of microentrepreneurs from 425 microfinance institutions (MFIs). This is a testament to both the success of microenterprise and to the determination of individual microentrepreneurs. Criteria for the awards included innovation, social impact of the microentrepreneur, use of technology, quality of life improvement and creation of new employment opportunities. The winning contestants rang the opening bells at over 30 stock exchanges, sending a strong signal to the world that building inclusive financial sectors can play an important role in poverty alleviation.

Student involvement, both from the United States and at the local level, has been a critical factor in the successful implementation and expansion of the GMA Programme in 2005. Over 500 student volunteers have dedicated their time and energy to ensuring that the GMA in each country was a success. Students assisted their country teams by doing research, writing reports and press releases, facilitating communication between different team members and providing general administrative support.

Media coverage has been a victory as well, with over 100 different news stories covering the GMA 2005 on the radio, TV and newspapers from all four major world regions. As participating countries hold their closing ceremonies throughout November, news coverage is likely to increase.

Asia

In Asia, the GMA Programme was implemented in eight countries: Afghanistan, Bangladesh, China, India, Indonesia, Mongolia, Pakistan, and the Philippines. Together, MFIs in these countries submitted over 2,000 applications, illustrating the growing importance of microfinance as a solution to poverty in this region. The GMA India received over 700 applications for its competition, and the GMA Bangladesh also generated a substantial response with 425 applications received to date. In China, over 50 MFIs submitted applications on behalf of their clients to participate in the GMA competition. In Mongolia, a member of Parliament, Mr. Zandanshatar, was appointed to Chairman of Mongolia's GMA Advisory Council. He said: "The focus of the GMA Programme is the microentrepreneur. However, it could benefit broader stakeholders in Mongolia such as banks and microfinance institutions, NGOs, the private sector and the country of Mongolia itself. I hope the GMA will contribute to promote Mongolian entrepreneurial culture and establish strong partnership with all stakeholders".

Africa and the Middle East

The success of the GMA has been echoed in other regions around the world. In Africa and the Middle East, a total of 13 countries participated in 2005: Egypt, Jordan, Lebanon, Morocco, Democratic Republic of Congo, Kenya, Liberia, Madagascar, Malawi, Nigeria, Senegal, Sierra Leone, and South Africa. Over 500 applications from more than 100 MFIs were submitted on behalf of microentrepreneurs from this region. In Jordan, Ahmad Al Ashmawi, Executive Director of Sanabel, the Microfinance Network of the Arab Countries, praised the GMA Programme: "This award scheme represents an important tool for creating awareness about microfinance at all social levels: family and community of the winner, students, the press, business community, academics as well as decision-makers in Jordan."

Latin America

Latin America has experienced an exciting year of GMA Programmes in seven countries: Brazil, Chile, Colombia, the Dominican Republic, Mexico, Peru, and Venezuela. Together, these countries have generated over 500 applications, with both Brazil and Chile receiving more than 100 applications each. Two hundred MFIs from across the continent nominated microentrepreneurs. Student participation was an important part of the GMA in many countries: a total of 93 students in Latin America contributed their time and efforts to ensure the successful design and implementation of the GMA Programme.

Eastern Europe

The final region participating in 2005 is Eastern Europe, with GMA Programmes in Russia and Poland. The response in the region was overwhelmingly positive, with Russia receiving 100 applications for the competition. In Poland, 17 different MFIs submitted 96 applications on behalf of Polish microentrepreneurs. The media campaigns in both these countries were extremely active, helping promote microfinance at the national level.

Global Microentrepreneur Awards Gala at UN Headquarters in New York

In addition to initiating celebrations across the world, the International Year of Microcredit brought nine GMA winners from Afghanistan, Bangladesh, China, India, Liberia, Malawi, Peru, Sierra Leone and South Africa to UN Headquarters in New York for the Global Microentrepreneur Awards Gala on November 8, 2005,[1] as part of the International Forum on Building Inclusive Financial Sectors.[2] The winners were honored guests for the evening at an event that also hosted celebrities like Jennifer Lopez, Tim Robbins, Walter Cronkite, Rory Kennedy and Chelsea Clinton, who joined over 400 dignitaries, business leaders and high-level government officials in celebrating the tremendous achievements of the microentrepreneurs. The celebrities presented awards to each GMA winner. For many winners, this was the first time to travel outside of their country and, in some cases, village in their lives.

The winners from Afghanistan, Bangladesh, China, India, Malawi, Peru, and South Africa all thanked the microfinance institutions and banks that made their success possible. Ms. Xu XiaoEn from China said in her acceptance speech: "I wish that our efforts here will bring more people to realize the importance of microcredit, and that more financial services could be accessible to poor people, and I wish that all the people in the world will live a happy life in the future".

Chrissie Akulila Katundu of Malawi said she thought microfinance "was a historic happening" for the women of Africa, and thanked everyone for taking time to attend the event. It was revealed that night that in addition to successfully farming cassava and making it into flour, she has adopted 20 orphaned children, four of whom have attended college with her support.

Milkov Machaca Valenzuela, the winner from Tacna, Peru runs a microbrewery employing five people. Milkov thanked his supporters in Peru for making his success possible and also thanked, "everyone for enabling me to represent thousands of Peruvian microentrepreneurs and to show that with hard work, one can achieve success".

Mama Fatu Kanu was the final award recipient of the evening. A 70 year old widow from Sierra Leone, Mama Fatu farms tobacco, rice, and vegetables and brews a local gin. The success of her business has enabled her to pay for her son's college fees as well as build a home for herself and her family. She said, "I am illiterate, I cannot read or write English, but today, I am in New York. I thank you very much".

Renowned actor, writer, director and activist Tim Robbins acted as host of the event. He set the tone with a welcome speech in which he said, "Microfinance is a way for the world community to break this vicious circle of poverty, vulnerability, and economic anonymity. A way to give people access to bank accounts, the means to send a paycheck home, the ability to borrow small amounts of capital to seed a business, the tools to build and protect their assets or to provide education, health and nutrition for their families". He went on to say that: "Microfinance is development in its purest sense. It brings people in from the margins, allowing them to participate in and contribute to both economic and social progress. It recognizes that these people are not the problem, but rather the solution".

World famous entrepreneur Richard Branson, whose many accomplishments include founding Virgin Atlantic Airlines, presented the award to the winner of the GMA from South Africa. Before inviting Ms. Liza Troskie to the stage, Mr. Branson told the crowd a story of his personal experience with microfinance. Near his game reserve in South Africa, he met a female elder who told him that with US$200 she could purchase a sewing machine and create jobs and goods to sell. He gave her the money and forgot about it, assuming he would not be paid back. Several months later, he returned to the reserve and four women approached him with a beautiful garment and told him the woman he had lent the money to was selling more goods they had made in a nearby market. They all worked for her and repaid him the US$200. He ended the story by saying: "Five jobs had been created from US$200, which certainly got me thinking and made me realize what a wonderful thing it was", indicating how a small investment can yield big, positive changes in the lives of people involved.

World famous news anchor Walter Cronkite gave the keynote address of the evening on behalf of UN Secretary-General Kofi Annan. He spoke about the difficulty poor people face in changing their situation when they do not have access to the banking services we in the US take for granted. He began his speech by saying, "Tonight we honor successful entrepreneurs, who were able to access financial services to realize their hopes and dreams. But amidst the celebration, we must also remember that these incredible victories are all too rare. It's hard for many of us here in this room to imagine what type of house we would live in if no bank would offer us a mortgage." He applauded the efforts of the GMA winners by saying, "as our honorees tonight have shown us, microfinance allows people to move beyond day-to-day survival, toward planning for the future…We must move forward from the International Year of Microcredit into the Future of Microfinance. Only when the majority of the world's poor and disenfranchised people have real, tangible opportunity, will we be able to say our work is done".

By rewarding individual microentrepreneurs, the Global Microentrepreneurship Awards Programme has helped highlight the hard work and dedication of microentrepreneurs and foster stronger microfinance sectors in participating countries. The overwhelming success of the GMA Programme is evident in the number of participating MFIs, the vast number of applications submitted, the attention of the worldwide media, and the bonds developed between individuals, national governments, and private sector businesses across the globe. The GMA 2005 has not only helped to move closer toward promoting microentrepreneurship, but has inspired hope and dedication to supporting microfinance to alleviate poverty around the world.

(1) To view this event in its entirety, please visit the following link, and select 08 November 05 "Special Event: Microentrepreneurship Awards Dinner": http://www.un.org/webcast/2005.html

(2) For more information on the UN International Forum on Building Inclusive Financial Sectors, please visit: http://www.uncdf.org/english/microfinance/newsletter/pages/2005_11/news_forum.php