Well-Being For All

In September 2006, the Government of Canada proposed new guidelines for its Microcredit Policy. They approached non-governmental organizations, including World Accord, and asked them to review the report. The changes suggested by the government would gravely affect World Accord and our partners; future programming would exclude informal lending organizations and cater towards formal financial institutions such as banks and credit unions. Informal institutions, the Government declared, have high default rates and are not self-sufficient. Yet without access to credit from informal institutions, poor people have no where else to turn. Therefore, World Accord opposes the policy changes! We have responded with recommendations to strengthen microcredit programming and aid effectiveness to advocate on behalf of our partners, like the widowed women at Mujeres en Accion, so they can continue their good work.

Felipa Xico, Director of Mujeres en Accion, will be attending the 2006 Global Microcredit Summit in Halifax along with World Accord staff member, David Barth. The two will attend workshops to expand their knowledge in gaining access to foreign markets, and how to plan for financial self-sufficiency while reaching the poorest families. There will also be opportunities during panel discussions for Mujeres en Accion’s to share their experiences using microcredit as a tool for poverty reduction and increasing food security.

As microcredit gains international recognition, it is clear the world acknowledges this kind of initiative. Muhammad Yunus, founder of the Grameen Bank in Bangladesh, was awarded the 2006 Nobel Peace Prize for innovating the microcredit concept in his country. The resulting social transformation it has inspired cannot be denied. World Accord stands by microcredit programming that is inclusive of local level initiatives and we are actively pursuing policy alternatives that empower the poor.