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.
© Jordan Times 2005
