BACKGROUND
The Lao PDR Microfinance Working Group (MFWG) was established in May 2007 by a group of microfinance practitioners committed to sharing experiences and working together to promote a coordinated approach to sustainable microfinance that works towards international good practice principles in the Lao PDR.
The MFWG supports the poverty alleviation efforts of the Government of the Lao PDR, in particular those outlined in the National Growth and Poverty Eradication Strategy (NGPES) which include movement towards a market-oriented economy, financial sector reform specifically of microfinance providers, client-driven microfinance service development, MFI autonomy including that of interest rate setting, the creation of a microfinance forum and legal space for sustainable microfinance institutions.
Through the MFWG, members will learn from one another about successful and unsuccessful approaches to microfinance in the Lao PDR, consolidate sector information on the microfinance website for the Lao PDR, raise awareness about microfinance, maintain an email discussion and announcement list and facilitate dialogue with government agencies and banks for development of the microfinance sector.
The MFWG will not focus solely on information sharing; it will also encourage discussion for proposed activities to be undertaken by participating organizations, assign responsibility for coordinating activities and follow up regularly on progress made.
MISSION
To enhance the impact of microfinance on poverty alleviation in the Lao PDR by promoting a coordinated approach to sustainable microfinance that works towards international good practice principles (based on the CGAP key principles) in an enabling market environment.
Objectives
• Representation
To represent the interests of the microfinance industry in providing information on the sector locally and internationally and to provide guidance to those intending to enter the MF market in the Lao PDR.
• Coordination and Information
To strengthen coordination and cooperation and to facilitate the information flow among MF stakeholders, donors and development partners, government agencies and policy makers; to support on-going learning and research in the microfinance sector and dissemination of research findings.
• Capacity Building
To identify and address common needs in training and technical resource development; to pool capacity development resources to maximise impact and outreach of these activities in moving towards international good practice principles.
• Advocacy
To engage in policy dialogue that encourages an enabling market environment for sustainable microfinance that meets international good practice principles; to provide feedback to policy makers and/or regulator with regards the existing or desired policies that have the potential to affect the sector.
