International Year of Microcredit 2005 Final Report Foreword | Executive Summary | Introduction Download pdf version of entire report (2 MB)

Foreword

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The United Nations Capital Development Fund (UNCDF) is pleased to present its Final Report on the International Year of Microcredit.

In 1998, the General Assembly of the United Nations designated 2005 as the International Year of Microcredit. UNCDF and the United Nations Department of Economic and Social Affairs (UNDESA) were invited to jointly coordinate the activities of the United Nations system during the preparations for and the observance of the Year. The Year was established to assess and promote the contributions of microcredit and microfinance to the Millennium Development Goals; to increase public awareness and understanding of microcredit and microfinance; to support sustainable access to financial services; and to encourage and establish innovation and partnerships among the many institutions participating in microfinance activities.

This Report sets forth the accomplishments of the Year. In our view, it clearly establishes that the Year was a resounding success and accomplished its objectives in a compelling manner. The International Year of Microcredit significantly raised public awareness around the world regarding microcredit and microfinance. More than 100 countries participated in activities associated with the Year and more than 60 National Committees were established to promote microfinance and broader access to financial services for the poor. In addition, there were more than 350 conferences and events during the Year and more than 100 academic institutions hosted seminars, conducted research, or were otherwise involved in the activities of the Year. On 7-9 November, 2005, the Year culminated in a Forum at the United Nations in New York in which more than 700 people attended a highly focused series of discussions on microfinance and issues related to expanding financial services to more poor and low-income people and to more micro and small enterprises.

UNCDF was pleased and honored to host the Secretariat of the Year and to be a sponsor of its activities. We have prepared this Report as a summary of the Year’s events and accomplishments as seen from UNCDF’s perspective. We also have prepared it as a tool and resource for others who will write about and evaluate the Year of Microcredit or who will organize or manage other UN Years. Consequently, we have provided extensive documentation in the Annexes to the Report so that detailed information and source material will be readily available to others.

We believe, and the Report confirms, that the success of the Year was largely attributable to the collaborative and participatory environment that the United Nations was able to create and sustain around the world. We also believe, as again the Report confirms, that the creative and enthusiastic participation of institutions and individuals beyond our knowing or counting drove the Year’s activities and provided it with the energy that was one of its most observable characteristics.

Within this context, we would clearly like to acknowledge the outstanding contributions that were made to the Year by UNDESA and the United Nations Development Programme (UNDP), our closest UN partners in the Year and our collaborators on the Coordinating Committee; the Bretton Woods institutions and other organizations from the UN system (including in particular the International Fund for Agricultural Development [IFAD] and the International Labour Organization [ILO]) who participated actively in many of the Year’s normative and operational activities; the Advisors Group to the International Year of Microcredit, which provided excellent and essential guidance, advice, contacts, and perspective throughout the Year; the Emissaries and Spokespersons for the Year, each of whom utilized their unique circumstances to represent and advocate for microcredit and microfinance; the Consultative Group to Assist the Poor (CGAP) and other development agencies and donors who provided their expertise and experience to the many substantive issues that the Year addressed; the many participants in the National Committees that facilitated and sponsored the activities of the Year in more than 100 countries; the administrators, professors, and students from the Student and University Network for the Year of Microcredit who conducted events at universities around the world; the many private sector companies who provided numerous types of support to the Year (including in particular Citigroup, VISA International, and ING Group for their financial sponsorship); the United Nations Foundation (UNF) and the United Nations Fund for International Partnerships (UNFIP) for their financial and operational support; the many microfinance institutions, microfinance networks, alternative financial institutions, other financial services providers, and clients who provided invaluable and unique insight and experience “on the ground” with respect to microfinance and inclusive finance in their countries.

In addition, throughout the Report and in its Annexes, particular institutions and individuals are identified where they have made specific contributions to the Year. To each of these institutions and individuals, we extend our gratitude and appreciation. A special recognition must go to Christina Barrineau, the Chief Technical Advisor of the Year of Microcredit at UNCDF, and to the talented and dedicated staff that she assembled. Christina and her team worked with little and accomplished much, far beyond what was contemplated when the Year was designated by the General Assembly in 1998. Without her vision, creativity, persistence, passion, tenacity, knowledge, commitment, and social graces, the Year would not have been the success that it was. For this tremendous effort and contribution, we acknowledge and thank Ms. Barrineau and her talented team (including in particular Nina Blecker, Fe Juarez, Maggie Neilson, Carola Saba, Veronica Scifo, Emma Torres and Vanessa Ward).

Lastly, I wish to acknowledge and thank all my colleagues at UNCDF who provided significant support and made significant contributions to the substantive work and activities of the Year. In particular, Henriette Keijzers, my Deputy Executive Secretary; Peter Kooi, formerly our Director of Microfinance; John Tucker, our Microfinance Portfolio Advisor; Adam Rogers, our Communications Specialist; Kathryn Imboden, our Senior Policy Advisor who coordinated and managed the preparation of the Blue Book on Building Inclusive Financial Sectors for Development; Heather Clark and Stephanie Narquin who worked extensively on the Blue Book; and Hyewon Jung for her contribution to the Blue Book and for her assistance in the preparation of this Report.

While the International Year of Microcredit significantly raised public awareness around the world regarding microfinance and access to financial services as an important development and social issue, much work remains to be done in these areas. The statement of the Secretary General at the outset of the Year remains as true today as it was when the Year began:

"The stark reality is that most poor people in the world still lack access to sustainable financial services, whether it is savings, credit or insurance. The great challenge before us is to address the constraints that exclude people from full participation in the financial sector…Together, we can and must build inclusive financial sectors that help people improve their lives."

It is this challenge that the Year brought into full public view. It a challenge that still confronts us and to which our future efforts must be dedicated.