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UNITED NATIONS CAPITAL DEVELOPMENT FUND Microfinance |
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News | Hundreds Attend Launch Program at UN Headquarters Secretary General Advises that Microfinance Should Put Millions on the Path to Prosperity
November 18, 2004 officially launched the International Year of Microcredit 2005. After a kick off gala on the night of the 17th in New York, the official launch day at United Nations Headquarters began with a special performance by the UN International School children's choir with world-renowned musicians Anggun and Souad Massi. Then the lights went down for a video message from Secretary General Kofi Annan. He urged those observing the Year to recognize that poor people should be viewed as part of the solution to development and not part of the problem. He reminded us that microfinance is not charity but a way to extend the same rights and services to low-income households that are available to everyone else. This message was shown at launches all over the world from Switzerland all the way to Mongolia. Iftekhar Ahmed Chowdhury (Bangladesh), Vice-President of the General Assembly, speaking on behalf of General Assembly President Jean Ping, noted that hundreds of millions poor people worldwide still lacked access to finance and spoke about the role of governments in facilitating this access. As the moderator of the event, Mark Malloch Brown, Administrator of UNDP, pointed out that microfinance is more than just an income-generating tool. He reminded the crowd that “microentrepreneurs are the foundation of their countries’ futures, and indeed we should not forget that most businesses everywhere start with just one or two people and grow from there . . .” Jose Antonio Ocampo, Under-Secretary-General for Economic and Social Affairs, spoke about institutional outreach and the importance of serving a broader client base. He commented, “the creation of inclusive financial sectors that embrace poor people and their communities is a huge and daunting challenge and the private sector – in particular, financial institutions with their resources and global networks — can and must play a key role in this mission.” Princess Mathilde of Belgium, Spokesperson of the International Year of Microcredit, focused attention on the spirit of entrepreneurship and the importance of the international community’s commitment to eradicating poverty to give poor people a better stake in the fabric of society’s economic and financial life. Recounting her personal experiences, Titiek Winarti, the Indonesian winner of the Global Microentrepreneurship Awards, articulated the need for services catered to women business owners. She had used $50 in savings to start a textiles business employing handicapped people to make and export clothes. Mark Malloch Brown then opened the floor for statements by country delegations. Sultan Ibrahim Yousouf Al-Mahmoud (Qatar), speaking on behalf of the “Group of 77” developing countries and China, said microcredit had allowed people to increase their incomes, acquire assets, reduce their vulnerability to crisis, and fight their way out of poverty with dignity. He also spoke of the roles of Member States, the United Nations, international financial institutions, the private sector, and civil society in moving microcredit and microfinance forward and cited the Year as an opportunity to share ideas on innovative uses of microfinance schemes in broadening choices for the poor. Dirk Jan Van Den Berg (Netherlands), speaking on behalf of the European Union, said that microcredit clients, particularly women, were able to translate increased incomes into improvements in education, health, nutrition, and better management of household emergencies. He stated that it is “Our goal to figure out how to work together in partnership to build financial sectors that work for everyone and in particular for those that are trying desperately to climb the economic ladder to get out of poverty.” Regis Avanthay (Switzerland) said that in order for microfinance to be effective, it must be based on sound and sustainable policies tailored to the specific needs of each country. The hope was expressed that the International Year would be part of the multilateral dialogue on the Monterey Consensus. Switzerland recognized the impressive work done in the field of microcredit and microfinance by the United Nations Capital Development Fund (UNCDF) and the United Nations Department of Economic and Social Affairs. Katherine Mckee (United States) said the US had been working with civil society and the business sector to promote microfinance for over 25 years, spending some $100 million per year in the field. She said it was important to support diverse partners in the microfinance area, including domestic banks, credit unions, leasing companies and even non-financial institutions, like agricultural suppliers. She also stressed that the needs of poor people extend beyond credit to savings, insurance, remittance services and financial education. She concluded by saying that the only way to reach a deeper financial sector was to understand who was being served and to use that knowledge to develop better services for currently excluded households. Representatives of the private sector, UN Agencies, governments, microfinance partners and non-governmental organizations attended the day's program. After the ceremony, excerpts from a documentary on the microenterprise movement by producer Sterling Van Wagenen gave a glimpse into the challenges and victories of poor and low-income entrepreneurs. During the afternoon, high-level roundtables looked ahead to the future of the microfinance sector and examined the constraints to inclusive financial sectors. Listen to the webcast. A final plenary session offered the
Advisors Group the opportunity to summarize the discussions of the day and to
present a vision of how to move forward. .
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