HC Deb 28 January 1998 vol 305 cc337-8
7. Mr. Reed

What measures she is taking to promote micro-credit schemes in developing countries. [23864]

Mr. Foulkes

We are increasing support to micro-credit and saving institutions in developing countries. Our total funding now amounts to nearly £42 million. Most of our funds go towards capacity building and encourage best practice in collaboration with developing country Governments and other donors. My hon. Friend will welcome the news that following the election we joined Results International.

Mr. Reed

Yes, I welcome that important news. Does my hon. Friend agree that, while we welcome many large projects in developing countries, capacity building is one of the most important aspects of micro-credit schemes? Micro-credit schemes play a vital part in helping those in the poorest developing countries. Will my hon. Friend assure me that in future, when the aid programme is being considered, micro-credit schemes will play a much larger role in the way in which we help local developments and communities?

Mr. Foulkes

I thank my hon. Friend for his welcome of our joining Results International and I direct his attention to a project that the Government have been supporting since 1993 in Kenya, the rural enterprise programme, which is now witnessing its transition to a banking institution, helping the poorest people, particularly women, to create their new enterprises. I am sure that hon. Members will agree that that is a model for other countries to follow.