European Microfinance Week: European answer to poverty?

Microfinance Focus, Nov. 26, 2009: Organised by the European Microfinance Platform (e-MFP), the three day “European Microfinance Week” that was held in Luxembourg has brought together over 300 delegates drawn from financial institutions, NGOs, government agencies, academics and sector specialists to share their experiences and create synergies among European actors.

“European Microfinance Week is a meeting point for European actors to analyze the evolution of microfinance in developing countries” said Axel de Ville, Chairman of the e-MFP. ‘Through microfinance we hope to bring ‘European answers’ to the threat posed by poverty in these countries,” he added.

Challenges facing responsible finance

Within the context of the changing global economy, microfinance offers a pertinent solution in the fight against poverty and a real alternative to traditional financial services for the underprivileged. Potentially, some 2 billion individuals living in poverty could benefit from access to microfinance. “The e-MFP is aware that there are new challenges to be met, and is counting on European Microfinance Week to use the diversity and the complementary nature of its members who are actively involved in microfinance in developing countries to generate relevant responses”, said a statement.

An event oriented towards the post-crisis period

The main theme of this year’s European Microfinance Week, (an event which is held annually in Luxembourg), was ‘Microfinance in a new financial era.’  The economic crisis has highlighted the inadequacies of traditional financial services, giving rise to new expectations where microfinance is concerned.  Sessions have concentrated on the effect the crisis is having on the microfinance sector, giving prominence to the roles of savings, transparency and regulation, as well as to the crucial issue of social responsibility and client protection.

“It is essential to put social responsibility at the core of future developments in microfinance if the instrument is to become a real tool for reducing poverty” Axel de Ville emphasized.  “And ultimately, there is no reason why it should not set an example for the traditional financial sector to follow.” In addition, concrete examples relating to micro-insurance, protection of the environment and use of technology would offer new prospects for inclusive financing, he noted.

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