Navigation Links
Controversial New Report Details Successes and Challenges as the Microcredit Movement Escalates Its Battle With Poverty
Date:12/18/2007

WASHINGTON, Dec. 18 /PRNewswire-USNewswire/ -- Microloans to the poor around the world soared to 133 million last year, up from 13 million just nine years ago, according to a report released today by the Microcredit Summit Campaign, an initiative of RESULTS Educational Fund. The dramatic progress was also evident in the Campaign's focus on loans to the very poor, those living on less than a US$1 a day, which reached 93 million families in 2006, just shy of the Campaign's goal of reaching 100 million poorest. "We know that by today the 100 million poorest will have been reached," Microcredit Summit Campaign Director Sam Daley-Harris said, "but we won't be able to report those results until the 2007 data is collected, verified, and released at the end of 2008."

The report singles out special praise for Jamii Bora: a microfinance organization in Kenya that started eight years ago with loans to 50 beggars and now reaches 170,000 savers and 60,000 borrowers. The groundbreaking institution started offering health insurance seven years ago when it realized that of those clients who struggled to repay their loans, 93 percent had the same challenge --- a close family member in the hospital. "You can't expect that anyone will let their child die because they have to pay their loan to Jamii Bora," said the group's founder Ingrid Munro, "so this was something that we had to solve." As a result, Jamii Bora covers all in-hospital costs for one adult and four children by linking with mission hospitals. The total cost for the family of five is just 30 cents per week or US$12 per year.

This year's report, however, is the first to assess how the microfinance movement is in danger of becoming a victim of its own success. A tidal wave of commercial capital in recent years is now challenging the very principles on which the microfinance movement was built. The report discusses how Mexico-based microfinance institution Compartamos launched an IPO in April 2007, which netted some US$450 million for its initial investors and raised the company's valuation to US$1.4 billion. This was possible partially because of the microfinance institution's high profits spurred by interest rates and other charges that top 100 percent a year.

"I am shocked by the news," said Nobel Peace Prize Laureate Muhammad Yunus reacting to the IPO. "Microcredit should be about helping the poor to get out of poverty by protecting them from the moneylenders, not creating new ones. A true microcredit organization must keep its interest rate as close to the cost-of-funds as possible. There is no justification for interest rates in the range of 100 percent. My own experience has convinced me that microcredit interest rates can be comfortably under the cost of funds plus ten percent, or plus fifteen percent at the most."

Daley-Harris, the report's author, challenges World Bank President Robert Zoellick to stop the Bank's foot-dragging and invest more money into microcredit programs for the very poor. On October 3, 2007, 29 members of the U.S. House and Senate met with President Zoellick for over an hour to persuade him to get half of World Bank microfinance funds to families living on less than US$1 a day. Zoellick's main promise to the members of Congress was to meet regularly for more discussion.

"While the World Bank talks," Daley-Harris said, "26,500 children die each day from largely preventable malnutrition and disease and some 77 million children of primary-school age are not in school. Zoellick should agree to the requests from Congress, requests that his two predecessors received from more than 1,200 parliamentarians, to increase World Bank spending for microfinance; ensure that half of Bank spending on microfinance reaches the very poor, those living below US$1 a day; require the use of cost-effective poverty measurement tools to ensure compliance; and report annually on results."

"The World Bank has a choice," Daley-Harris says, summarizing the report. "Will it remain stuck in its stingy, Scrooge-like refusal to extend microcredit to the poorest families in the world or will it be transformed and give the gift of microfinance to the very poor thereby helping hundreds of millions of families find a dignified route out of poverty?"

For more information, or for an embargoed copy of the report, please contact Denise Hughes at 917-549-2621, or Denise@creative-connectors.com. Please let us know if you are available to meet with Sam Daley-Harris in NYC on December 14th or by phone.

http://www.microcreditsummit.org


'/>"/>
SOURCE The Microcredit Summit Campaign
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. Controversial Anemia Drug Doesnt Cut Need for Transfusions
2. Controversial physical agents directive postponed
3. Study Supports Controversial Heart Failure Drug
4. Virginia Tech Report Has National Importance
5. New Study Reports High Injury Rates for Hotel Workers, Even Higher Rates for Women and Nonwhites
6. GAO Report Confirms: Medicare Underpays for Anesthesia Services; Nurse Anesthetists Assure Seniors Access to Safe Anesthesia Care
7. Haemacure Reports Third Quarter 2007 Results
8. Report on patients access to cancer drugs uses flawed methods to reached flawed conclusions
9. Biotech Finishes on a High in August, Burrill Report Says
10. First-Ever List of the 5,000 Fastest-Growing Businesses Reports Total Revenue of $194.5 Billion
11. Consumer Reports Analysis: Drugs for Nerve Pain, Fibromyalgia Effective, But Not Always Best
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/16/2017)... ... ... Maury Regional Health has announced a large-scale adoption of AccuVein vein visualization ... Regional Medical Center is making vein visualization part of their standard of care. , ... importantly, helps our staff members locate a vein that will provide good access to ...
(Date:8/16/2017)... ... August 16, 2017 , ... A global leader in the treatment ... clinics in all 29 Indian states—bringing the country one step closer to eliminating clubfoot ... the nonprofit organization is on track to enroll 10,000 children in the clubfoot treatment ...
(Date:8/16/2017)... ... , ... Fusion Flix Inc., a Telly Award Winning, Non Profit Corporation has ... viewers in a partnership with the Amazon Video Direct Streaming Distribution Platform. , Their ... Ray disc in 2018. Proceeds will be going to further health research. , ...
(Date:8/16/2017)... (PRWEB) , ... August 16, 2017 , ... TopConsumerReviews.com recently ... Lab Testing . , The healthcare industry in the United States has undergone ... are the days of needing to have a doctor’s order to get a blood ...
(Date:8/16/2017)... , ... August 16, 2017 , ... First Choice ... States, named Dr. Douglas J. Harrison, as the new Medical Director of its Sienna ... new facility Medical Director of our Sienna Plantation location,” said Dr. Michael (Derek) Caraway, ...
Breaking Medicine News(10 mins):
(Date:8/15/2017)... , Aug. 15, 2017  AOTI Inc. announced today that its ... Inc., has recently opened a New York City Office in ... of its unique Topical Wound Oxygen (TWO 2 ) homecare therapy. ... Accreditation Commission for Health Care (ACHC) under the company,s DMEPOS accreditation ... ...
(Date:8/8/2017)... Israel, Aug. 8, 2017  BioLineRx Ltd. (NASDAQ/TASE: BLRX), ... today reports its financial results for the second quarter ... during the second quarter 2017 and to date: ... clinical development programs for the Company,s lead project, BL-8040: ... pivotal study with BL-8040 as novel stem cell mobilization ...
(Date:8/7/2017)... Mich. , Aug. 7, 2017 Diplomat Pharmacy, ... of Joel Saban as president, effective Aug. 7, ... Urick has decided to pursue other interests and will ... "During his tenure, Paul has served us in multiple leadership ... Specialty Pharmacy in Jun. 2015 and has provided decisive, strategic ...
Breaking Medicine Technology: