Despite its limitations, micro-finance institutions which serve to date about 155 million people worldwide, plays a major role in achieving the Millennium Development Goals (MDGs), said President of UN General Assembly, Joseph Deiss, during a plenary session devoted to this subject.
"Our meeting takes place just three weeks after the high-level plenary meeting on the Millennium Development Goals. Microfinance has a role to play in achieving these goals. Suffice it to think about improving women's access to financial services and, thereby, enhancing their empowerment, positive indirect effects on schooling and health care of children, "said Joseph Deiss .
"Micro-finance is an important instrument for improving the living conditions of the poor. The considerable growth of micro-finance in recent years can be considered a success, "he added.
During the plenary session of the General Assembly, the delegations discussed Report of the Secretary-General Kofi Annan on the role of microfinance in eradicating poverty.
In this report, Ban Ki-moon accepts that the debate continues about the extent to which the micro-finance really help very poor people who already have very few resources in terms of education or business acumen, enabling them to realize more productive credit they receive. This results in poor performance and even indebtedness.
The report noted an uneven geographical penetration, rural areas often remain excluded. It is also that micro-finance does not favor the creation of sufficient productive activities. "In general, micro-finance has difficulty reaching the poorest populations," noted Mr. Deiss.
He felt he had to learn from the experiences to date and better exploit the potential of micro-finance. "We must now take appropriate measures to materialize the concept of inclusive finance and thus ensure that the financial sector promotes job creation and productive activities and thus be at the service of the poorest and the entire Company "He said.
Source UN
