A Focus on Microfinance During the Obama Administration? We Hope, We Hope.

[Guest]

.

[Jill]

I’m not much of a multitasker so I only caught part of it, but….

While I was just now incredibly happily writing a former student I just heard from after over fourteen years of having lost all contact, I was watching/not watching Hillary Clinton’s confirmation hearing as presumptive Secretary of State that’s being held, right now, before the U.S. Senate.  Ears immediately perked when I heard her mention the word, microfinance, in her testimony.

What I managed to catch, which, hopefully, others of you will be able to expand upon, was her talking about how much she believed in women’s and in poverty issues, and so, had been especially interested in microfinance for some many years, now.  She then went on to say that Barack Obama’s mom had been very involved, herself, in microfinance when they were living in Indonesia and had actually planned to attend a conference, I believe in Beijing (but maybe not) that Hillary Clinton actually went to but that Obama’s mom missed because of the illness that soon after took her life.

Anyway, Hillary Clinton then went on to say that she knew that Obama’s views were, and of course, had to be “informed” by his mom’s passion for microfinance and she, at least, implied that microfinance would have special attention during the upcoming administration.

No, she didn’t mention Kiva, specifically, but we most of us know that husband, Bill Clinton, featured Kiva in his book, Giving.   I'm posting this partly because I felt tremendous pleasure even hearing microfinance and its importance discussed and felt quite grateful both to Mohammad Yunus (sp?) and to Kiva for waking me up to its great value in the world.

[Peter S]

thanks Jill, for alerting us to that.

here's a full transcript of Hillary Clinton's Statement at the Senate Confirmation Hearing today:
http://www.foxnews.com/politics/2009/01/13/raw-data-hillary-clintons-statement-senate-confirmation-hearing/

and here's a relevant excerpt from it:

Today more than two billion people worldwide live on less than $2 a day. They are facing rising food prices and widespread hunger. Calls for expanding civil and political rights in countries plagued by mass hunger and disease will fall on deaf ears unless democracy actually delivers material benefits that improve people’s lives while weeding out the corruption that too often stands in the way of progress.

Our foreign policy must reflect our deep commitment to the cause of making human rights a reality for millions of oppressed people around the world. Of particular concern to me is the plight of women and girls, who comprise the majority of the world’s unhealthy, unschooled, unfed, and unpaid. If half of the world’s population remains vulnerable to economic, political, legal, and social marginalization, our hope of advancing democracy and prosperity will remain in serious jeopardy. We still have a long way to go and the United States must remain an unambiguous and unequivocal voice in support of women’s rights in every country, every region, on every continent.

As a personal aside, I want to mention that President-elect Obama’s mother, Ann Dunham, was a pioneer in microfinance in Indonesia. In my own work on microfinance around the world – from Bangladesh to Chile to Vietnam to South Africa and many other countries -- I’ve seen firsthand how small loans given to poor women to start small businesses can raise standards of living and transform local economies. President-elect Obama’s mother had planned to attend a microfinance forum at the Beijing women’s conference in 1995 that I participated in. Unfortunately, she was very ill and couldn’t travel and sadly passed away a few months later. But I think it’s fair to say that her work in international development, the care and concern she showed for women and for poor people around the world, mattered greatly to her son, and certainly has informed his views and his vision. We will be honored to carry on Ann Dunham’s work in the months and years ahead.


Peter

[charity]

I am happy to see the mention of microfinance, but even more happy to see the apparent acknowledgement that we must do something about the suffering and injustices of people around the world.  In my opinion, making sure ALL people are healthy, well fed, educated, and have opportunities for betterment are going to be the only way we as a planet can achieve some sort of peace.  To me, providing developmental aid to poor countries is the best investment in the "War on Terror" we can possibly make. 

[Tatiana]

So true, Charity.

[Jan & John]

Thanks Jill and to Peter for the follow-up...

and I immediately focused on the phrase...

"...delivers material benefits that improve people’s lives while weeding out the corruption that too often stands in the way of progress."

...which is one of the main reasons why I like the focus of lending as opposed to just giving money to charity with no idea of whose pockets I have been lining.  Our 'people in power' need to take responsibility for where all our 'AID' money is actually going. 

jan

[RichardF]

Don't just hope.  Do.   

whitehouse.gov - CONTACT US

President Obama is committed to creating the most open and accessible administration in American history. To send questions, comments, concerns, or well-wishes to the President or his staff, please use the form below:

To: Contact Us, the White House
Subject: I have a policy question

During Secretary-designate Hillary Clinton's confirmation hearing, she stated, "We will be honored to carry on Ann Dunham’s work  [in international development] in the months and years ahead."

What is this administration's policy on international development that supports individual responsibility and participation, such as  person-to-person microfinance through organizations like www.Kiva.org?

[rinkuhero]

It'd be nice for Kiva to get some promotion from the US government, but I kind of also like that it's just people doing this, not governments. Part of the appeal of Kiva is that it's people voluntarily loaning to people, if the government gave, say, $10m to them to loan with, it'd lose some of that feeling.

[leslieforman]

I, too, was thrilled to hear Hillary Clinton mention microfinance in her speech!  I am especially inspired to hear that Nancy Barry is a close advisor to Barack Obama.  Nancy is a microfinance expert, having been president of Women's World Banking for many years.  She and Barack Obama's mother were colleagues there.  Her current initiative is called Enterprise Solutions to Poverty, and she focuses on fighting poverty through the core business models of multinational companies working in emerging markets. 

I wrote a full article about her here on the Wokai Adventures blog: http://wokai.typepad.com/my_weblog/2008/12/obama-microfinance-and-china.html

Happy Year of the Ox!
Leslie

[TheTatiana]

Maybe government grants could help fund kiva itself, the servers and infrastructure, while private lenders still provided the bulk of the loan funds.  Alternatively, the government could help with the establishment of MFIs in the developing countries, and kiva could provide some interest free loans for them.  Either way I'd be delighted to see the U.S. get involved in doing things like this and funding schools for girls all over.

[RichardF]

Perhaps the USAID site will be a good place to watch for developments on this question.


USAID Welcomes Secretary of State Clinton

FOR IMMEDIATE RELEASE
January 23, 2009
Press Office: 202-712-4320
Public Information: 202-712-4810
www.usaid.gov

WASHINGTON D.C. - On her second day on the job, Secretary of State Hillary Rodham Clinton visited the U.S. Agency for International Development's (USAID) headquarters to address the USAID staff and underscore her support for the Agency's work as "an equal partner, along with defense and diplomacy, in the furtherance of America's national security."
...


USAID and Microenterprise Development

For the past three decades, support for microenterprise development has been an important feature of U.S. foreign assistance. In this era of globalization, generating economic growth in developing countries while reducing poverty is a fundamental development challenge. To ensure that the contribution of microenterprises to key subsectors and national economies is maximized, and to ensure that the poor are not left out of market development, micro and small enterprises (MSEs) need access to finance, business services, and improved inputs; they also need a conducive enabling environment that facilitates rather than inhibits their participation in markets. Therefore, USAID focuses on three areas of strategic support: financial services, business development services, and enabling environment.
...
Please visit www.microLINKS.org to learn more or to share your views and experiences as we continue to deepen our understanding of what works, and broaden our reach to improve the lives of the poor majority through microenterprise development and economic growth.


microLINKS - Microenterprise learning, information and knowledge sharing

About microLINKS

microLINKS is a knowledge-sharing family of applications and tools designed to improve the impact of USAID microenterprise programs and activities. microLINKS gives you access to the latest information on microenterprise; best practices; proven approaches from USAID Missions, partners, and practitioners; a library of documents, reports, and tools; and an environment that supports and enriches communities of practice.
...

 
A microLINKS example...

After Hours #23: Risk Management and Microfinance: In Search of Market Failures
Microfinance After Hours Seminar Series   (Presentation 5 of 9)

On July 16, 2008, USAID's Microenterprise Development office held its twenty-third Microfinance After Hours Seminar, on the topic of "Risk Management and Microfinance: In Search of Market Failures". Tanir Helayel (MF Analytics) and Konstantin Andreev (Cygma Corporation) discussed  the increasing and evolving multidimensional risks facing the microfinance industry – and some possible solutions. Thomas Debass (USAID/MD) moderated the panel and the ensuing question & answers session.
 
Click here for a screencast of this presentation.