§ Mr. GardinerTo ask the Secretary of State for International Development what preparations his Department are making for the UN Microcredit Year in 2005. [149428]
§ Hilary BennDFID strongly supports the underlying principles of the UN's Year of Microcredit 2005, which seeks to increase international efforts to spread microfinance to more low income clients worldwide. Donors, including DFID, have supported policies and institutions to extend the outreach of sustainable microcredit and other financial services to the poor for many years. DFID has held several discussions with the UN organisers and has been instrumental in linking them with The Consultative Group to Assist the Poor (CGAP), which promotes best practice in the microfinance industry. We intend to support specific events in the UK and will announce these this autumn.
Background
UN Year of Microcredit 2005
The UN General Assembly, through resolution 53/197 in December 1998, proclaimed 2005 as the International Year of Microcredit. Following consultations with Member States in the second half of 2003, a Programme of Action for the Year has been agreed. The UN Capital Development Fund and the UN Secretariat's Department of Economic and Social Affairs will jointly coordinate the preparation activities of the UN system for the Year.
1307WThe UK and others supported wording in the Programme of Action resolution that emphasised the wider contribution of microfinance, and financial sector development, beyond a concentration on microcredit itself. Hence the Programme of Action often refers to microfinance, in addition to microcredit, and refers to savings, asset creation, and economic security.
The UN Programme proposes that the Year will be launched in November 2004, that Member States will establish National Committees, and that 2004 should be a year of preparation. DFID officials have met initially with UNCDF Secretariat staff, and also with Citigroup, one of the private sector sponsors. UNCDF have noted that donor funding will not be needed at the international level.
The key to the success of the Year will be UN countries adopting the General Assembly Resolution, and signing up to active steps to enable expansion of access to microfinance at local level. Whilst UN "Years" are vulnerable to a charge of more talk and less action, the Year of Microcredit is already attracting attention from private and public sectors including Citigroup, Bank of International Settlements and others.
The All-Party Parliamentary Group (APPG) on Microfinance is very likely to take an interest in the International Year of Microcredit. The Secretary of State met with them on 21 October. DFID officials are also checking whether other Departments will have an interest in the Year (Treasury, DTI). Following further meetings, DFID will recommend a programme of action for the Year to the Secretary of State.
DFID Support to Extend Access to Microfinance
Current DFID-supported initiatives also include:
The £18 million Financial Deepening Challenge Fund, using innovative mechanisms to encourage banks and other financial service providers to extend financial services for the poor (www.challengefunds.org).
AfriCap (www.africapfund.com), specialist equity fund investing in emerging microfinance institutions in Africa.
MicroSave-Africa (www.MicroSave-Africa.com) a programme that tests new pro-poor savings, insurance, and loan products and promotes market-led microfinance.
In addition, country-led programmes to develop the microfinance industry are under way in Kenya, South Africa, Uganda, Tanzania, India and Bangladesh.
§ Mr. BercowTo ask the Secretary of State for International Development what discussions he has had with his counterparts in the United States since the breakdown of the World Trade Organisation ministerial conference in Cancun about the likely impact of the United States Farm Bill on the(a) economies of and (b) living standards in, developing countries. [149118]
§ Hilary BennThe Government conducted intensive discussion with the United States officials and ministers when the US Farm Bill was first introduced in 2002. Since Cancun there has been continuing contact between UK and US officials about all aspects of the WTO Round, including on the question of US domestic subsidies and their potential impact on the livelihoods of producers in developing countries.
1308W
§ Mr. BercowTo ask the Secretary of State for International Development how many people made up the delegations of the developing countries at the World Trade Organisation ministerial conference in Cancún. [149126]
§ Hilary BennAccording to the official list of delegates provided by the WTO Secretariat, there were over 1700 accredited delegates from Developing countries at the WTO ministerial conference in Cancun.