§ Mr. GarnierTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the Overseas Development Agency's policy towards micro-finance. [16855]
§ Dr. Liam FoxMicro-finance—savings as well as credit—can be a powerful tool able to benefit large numbers of poor people in a manner which is financially sustainable. Since 1990, we have provided increasing support for projects and institutions engaged in micro-finance, notably through our bilateral programmes in Africa and Asia. Total commitments to date are approximately $100 million and it is a field where we anticipate continuing to deploy significant resources. But experience shows that it is important to assist micro-finance institutions over time to achieve full financial self-sustainability.
In addition to direct support for micro-finance institutions, the Overseas Development Administration is involved in many other related areas. For example, we are active members of the World bank-based consultative group to assist the poorest; ODA chairs the working group on management information systems and reporting standards for micro-finance institutions. ODA is also the major source of funds for a study by the MicroFinance Network, an association of leading MFIs, on the critical subject of the regulation and supervision of MFI, looking at recent experiences in Latin America, Asia and Africa.
We are concerned to assess the impact of micro-finance. The results of a major research project on finance against poverty was published last year. Currently ODA is supporting a study, in collaboration with 10 leading UK non-governmental organisations, on the degree to which women are empowered through micro-finance.