Jordan Times
Thursday, June 2, 2005
Queen Rania challenges
microfinance leaders to expand region's sector
AMMAN (JT) — Her Majesty Queen Rania on Tuesday called on microfinance leaders
to accelerate the pace of establishing viable microfinance services and
institutions in the Arab world.
“The needs are great. The partners are there. And the time to act is now. Let us
change people's lives forever,” said Queen Rania.
Addressing an audience of around 300 guests, including incoming World Bank
President Paul Wolfowitz, Queen Rania urged them to commit to the challenge of
expanding the reach of microfinance to three million clients in the Arab region.
“One out of five people in the Arab world are born into poverty ... and too many
people still work from dawn to dusk in the informal sector,” she said, adding
that such people “don't have access to savings accounts. They can't build credit
histories.”
She said that by offering poor people “respect... responsibility... and a
fighting chance... they will do far more for themselves than we can ever do for
them.”
The Queen made her remarks during a forum entitled: “Unlocking the Potential of
Microfinance in the Middle East and North Africa,” held at the International
Finance Corporation in Washington, DC.
She urged those present to help develop a new breed of financial service
providers in the Arab world to bridge the gap between non-profit and for-profit
institutions by stressing a double-bottom line return “where serving
shareholders and serving society are not trade-offs but tandem goals.”
These new institutions will reach the so-called “bottom of the pyramid” and meet
high standards of business performance” setting the pace and marking the score
for larger banks to follow,” she explained.
Citing Jordan's example in working towards realising this vision, Queen Rania
said that Jordan, with the help of the Consultative Council to Assist the Poor (CGAP),
and in collaboration with the G-8, has established a regional technical hub and
training programme to help young Arab leaders hone their managerial skills.
“Now, we need to accelerate this trend throughout the Arab world,” she said.
Queen Rania cited loans and capital as just one aspect in addressing the
financial service needs of the poor within the region. “To build a bright future
for the Arab world, microcredit on its own won't be enough,” she said.
“We need to establish inclusive financial systems that offer a full range of
services savings accounts, insurance, pensions, cash transfers, and more — the
tools that enable resiliency, income generation and growth.”
The Queen also highlighted Jordan's efforts in developing a five-year national
strategy to expand the outreach of microfinance throughout the country, which
will serve as a regional model.
“Microfinance does more than help small businesses grow strong roots. It
nourishes capable, resourceful people who are starving for opportunity.”
Queen Rania, an emissary for the 2005 UN Year of Microcredit was speaking one
week after chairing the first meeting of the MENA Executive Council on
Microfinance at the World Economic Forum at the Dead Sea. During the meeting,
policymakers from the Arab world agreed on a common agenda for microfinance.
The IFC-hosted event was attended by high-level representatives from the UN
Capital Development Fund, CGAP, and the Foundation for International Community
Assistance (FINCA).
The mission of IFC, founded in 1956, is to promote sustainable private sector
investment in developing countries. The organisation has been active in the
microfinance sector in the Middle East since 1997.