§ 1. Mr. Andrew George (St. Ives)What support she is offering less developed countries to promote micro-credit projects. [51320]
§ The Parliamentary Under-Secretary of State for International Development (Mr. George Foulkes)We strongly support the provision of savings and credit to poor people. Experience shows that the poorest women use such schemes very creatively to enhance their family incomes, and are very reliable at repaying. Our current projects amount to about £60 million, and we anticipate increasing that figure. We are also working internationally to ensure that efforts are co-ordinated, and that we avoid the danger of a spread of badly organised micro-credit schemes.
§ Mr. GeorgeI am grateful to the Minister for that reply. Does he agree that the guiding principle of micro-credit schemes in less-developed countries is that of empowering the poorest in society, especially women? Micro credit is one of the most effective initiatives available to donor countries and non-governmental organisations. What steps is the Minister taking to establish a programme of partnerships with others, including United Kingdom banks, to build on the good work achieved so far?
§ Mr. FoulkesThe hon. Gentleman is right about involving women and getting them to participate. We took part in the summits on micro-credit schemes: the first was held in Washington, and the second in New York on 28 and 29 June. We discussed expanding our activity in partnership with non-governmental organisations and banks. There are about 10,000 micro-finance programmes lending to about 15 million people. We want to increase that to 100 million people, so we have a huge task ahead of us, but we are ready to do everything that we can to meet that challenge.
§ Mr. Andrew Reed (Loughborough)I welcome the announcement of £60 million for micro-credit schemes. That is an increase on the £42 million that was available one or two years ago. Does the Minister agree that micro-credit schemes offer the best opportunity for people to develop their skills, to make money and to assist their local communities? Will he ensure that micro-credit schemes gain from the increase in the aid programme over the next three years?
§ Mr. FoulkesMy hon. Friend is right that micro-credit schemes are cost effective: the repayment rates are high, and the schemes soon become self-sustaining. But we must not forget our other priorities, particularly health and education. I hope that the Opposition will recognise that, as a result of the settlement in the comprehensive spending review, which the hon. Member for South-West 356 Devon (Mr. Streeter) pooh-poohed at our previous Question Time, we shall be able to do a great deal more in those areas.