Summit Overview
Microfinance and Inclusive Development – an Alternative Summit
Globally, microfinance has come a long way in achieving the objectives of impacting poverty. A large segment of poor people have access to microfinance services viz. savings, credit, micro insurance and remittance and there is a perceptible reduction in poverty. Some even talk about/initiated micro pension schemes.
Two distinct approaches characterize the delivery of microfinance – minimalist or financial system approach and poverty school approach. The financial system approach seems to relegate microfinance as a means of addressing poverty. This has led to a debate in many countries as to whether there is a mission drift leading to decreasing focus on developmental outcomes of microfinance interventions. Beyond finance, microfinance programmes have generated social capital providing for synergy to initiate and intensify an inclusive developmental process encompassing livelihoods, education, health and MDG related goals.
Microfinance as a hub for inclusive development
Poverty is multi-dimensional and poses major challenges to Asian nations while pursuing economic development. Though it is more than a decade since inception of microfinance programmes, it is a matter of serious concern that access to sustainable micro finance services to a large chunk of poor people in Asia is still a major bottleneck. However, the potential of microfinance to aid and advance inclusive development is promising. Many countries in Asia are focusing on financial inclusion with an objective of connecting the poor to the formal financial system as access to banking system provides affordability.
Success stories of Inafi members in utilizing microfinance effectively for social and financial inclusion set up an enabling environment to emulate and trigger the development process touching wide range of issues of livelihood, food security, health, education, women empowerment, etc. It is this focus on development combining three pillars of inclusion namely social, financial and economic which calls for an Alternative Summit for Microfinance. It is in the fitness of things that Inafi as a network, committed to the development outcome through microfinance, is joining hands with the SERP, a development institution of Government of Andhra Pradesh and Government of India (GOI) which has launched National Rural Livelihood Mission (NRLM) for poverty alleviation as they share common philosophy and vision for organizing the Alternative Summit in Asia, for sharing the experiences and for evolving a road map for Inclusive Development through microfinance.
Alternative Summit
The theme - Microfinance and Inclusive Development
The expanding microfinance eco system with larger social capital has not been leveraged adequately for advancing inclusive development, even as we find gaps and constraints in strategies for sustainable access, to innovative financial services and livelihood products. Further, a stronger need is felt for harnessing synergies and to facilitate better coordination and collaboration among different agencies in addressing issues concerning health and education alongside technology as an enabler in this process. Inafi, SERP and GOI seek engagement of development stakeholders to draw strategies for development on larger canvas through microfinance in the Alternative Summit. The Summit would be for three days with each day having distinct focus on the topical issues in microfinance.
Day 1: Community/client ownership of microfinance and Social Capital
Day 2: Beyond microfinance - engendering development process and outcomes
Day 3: Savings led microfinance services
Objectives of the conference
- To look at different but effective approaches in the microfinance interventions based on the client/community ownership and disseminate best practices in such approaches across the sector.
- To bring out the positive fall-out of the community owned, controlled and managed microfinance models in building social capital and its larger benefits for development.
- To examine and appreciate the role of savings in mobilizing the local capital from the poor and low income families and building sustainability.
- To explore various safety and risk mitigating mechanism to insulate poor from various risks.
- To provide a platform for sharing successful experiences in engendering development outcomes through microfinance interventions encompassing livelihoods, MDGs (health and education), women empowerment, networking, and financial inclusion, etc.
- To take stock of the larger development impact triggered by microfinance work in different contexts and to disseminate widely.
When and where
June 21-23, 2011 @ Hyderabad, India.
For whom
Microfinance practitioners, NGOs and MFIs, Governments, Policy Makers/Apex Institutions, Commercial Banks, Insurance Companies, Regulators, Academia, Donor Agencies, Philanthropies and other development stakeholders.
