CIGAP: A New Dimension for BWTP FDC is about to commence a wide ranging program of follow-up activities for Banking with the Poor under the auspices of UNDP's Program of Credit for Income Generating Activities of the Poor, or CIGAP (see article on page 3 of this newsletter on the background and philosophy of CIGAP). As one of the implementing agencies for the program, the Foundation will be representing the BWTP network in a series of activities extending over the period 1993-1997; plans include:
The Brisbane Workshop will review the status of Banking with the Poor in member countries. It will consider the extent to which the recommendations of the Kuala Lumpur workshop, made to governments, banks, NGOs and international agencies, are being put into practice. The workshop will also consider the results of the research study of transaction costs to be conducted for CIGAP, and encourage member organisations to pool information on this vital issue. The tentative timetable for CIGAP activities to be conducted by BWTP is as follows: August-October 1993: Visits to all network member countries to arrange country workshops, and to discuss participation in the transaction costs study and staff exchanges October 1993: Transaction costs study commences November 1993-February 1994: Country workshops in India, Indonesia, Malaysia, Nepal, Pakistan, the Philipines and Sri Lanka March 1994: Preparation of country reports for the Third Regional Workshop to commence June 1994: Transaction costs study completed July 1994: Completion date for country reports September 1994: Third Regional Workshop in Brisbane. Existing network members and potential new members from the South Pacific will be hearing from FDC in the near future about arrangements for each of these activities. Bangladesh Country Workshop A new phase of the Banking with the Poor project commenced with the holding of a country workshop in Dhaka, Bangladesh, on 16 February 1993. Its purpose was to follow up on issues relating to Bangladesh, raised at the Second Asia-Pacific Regional Workshop in Kuala Lumpur in July 1992. The workshop attracted high level participation, indicating the importance placed on microcredit by the Goverment of Bangladesh. The Minister for Finance, Mr M Saifur Rahman, and the Secretary of his Ministry, Mr Nasimuddin Ahmed, both addressed the workshop. The opening session was chaired by the Governor of the Central Bank of Bangladesh, Mr Khorshed Alam, and attended by some 90 guests including senior civil servants, the chief executives of major commercial banks, and leaders of major non-government organisations (NGOs). Representatives of the World Bank, the Asian Development Bank, bilateral donor agencies and the media were also present. The Australian Government was represented by its High Commissioner in Dhaka, Mr Richard Gate. At a subsequent working session, 36 invited representatives of banks and NGOs discussed the report of Banking with the Poor. FDC's senior consultant, and former Governor of the Central Bank of Nepal, Mr Ganesh B Thapa, outlined the report's recommendations for policy and action. These were directed to the Government of Bangladesh and other national institutions, as well as to international agencies active in the country. Mr Thapa observed that the eight BWTP case studies clearly showed that the poor are bankable, that access to credit is more important than its cost, and that credit to the poor can be provided viably and sustainably at commercial interest rates. Dr John Conroy, FDC's Executive Director, announced the Foundation's intention to request the Bangladesh collaborating institutions, Janata Bank and Swanirvar Bangladesh, to take part in a further series of activities. These would include monitoring the progress of policy reforms relevant to Banking with the Poor in Bangladesh, and reviewing the scope and efficiency of microcredit delivery in the country. The workshop was reported extensively by major national newspapers in Bangladesh. Credit is due to the BWTP partners in Bangladesh who arranged media representation at the opening session. Partner institutions in other countries are urged to follow the Bangladesh example in their followup workshops. The Bangladesh workshop was the first in a series to be conducted by FDC under the auspices of the United Nations Development Programme's (UNDP) Regional Programme on Credit for Income Generating Activities of the Poor (CIGAP). There is a separate report on CIGAP on page 3 of this issue of the BWTP newsletter. We at FDC would like to express our thanks and appreciation for the efforts of Mr Al-Husainy, Chairman of Swanirvar Bangladesh and Mr Taheruddin, Managing Director of Janata Bank. New Address for FDC At long last the Foundation for Development Cooperation has moved offices. Since its establishment in March 1990, we have been the guests of our Founder and Vice-Chairman, Mr Bill Taylor. While this arrangement was very convenient as well as extremely pleasant with the beautiful views of the Brisbane River afforded by Bill's home, our continued expansion has necessitated larger accommodation. We are most grateful to Bill for his generosity over the years. Since 1 July, we have been located in a historic heritage-listed building in the heart of the city of Brisbane. We would certainly welcome visits by anyone with an interest in development cooperation. Our new address is: Level 6, 232 Adelaide Street UNDP's Regional Programme of Credit for Income Generating Activities of the Poor (CIGAP) CIGAP is an Asia-Pacific regional activity of the United Nations Development Programme (UNDP) aimed at alleviating poverty through the expansion of grass-roots programs of credit to promote income generating activities for the poor. It seeks to expand and disseminate existing credit programs so that the amount of credit can be increased, ensuring that more poor people can gain access to these programs. The underlying rationale for CIGAP stems from a number of beliefs:
CIGAP is essentially a program of technical cooperation between developing countries. Apart from its interests in dissemination and expansion, it will finance a number of studies which will examine how administrative costs of supervised credit and small loans can be reduced, how subsidisation of lending to the poor can be eliminated, and how the culture of banking with the poor can be promoted in the commercial banking sector. The executing agency for CIGAP will be the Asian Pacific Development Centre (APDC) in Kuala Lumpur. APDC has contacts with participating governments, networks and institutions. It has been involved in programs of credit to the poor and has past experience as an executing agency for UNDP. Activities to be undertaken under CIGAP will be:
(Refer to page 1 of this newsletter for an article on BWTP's involvement with CIGAP). German Edition of Banking with the Poor FDC has reached agreement with the Development Research Centre of the University of Cologne in Germany for it to republish Banking with the Poor in its monograph series. The monograph, which will be in English, will have a readership which the original edition of Banking with the Poor is unlikely to reach, particularly in Europe. FDC will retain copyright on the report and will continue to distribute it as actively as possible world-wide. Microcredit for Microenterprise: a Bibliography In implementing Banking with the Poor we have collected a considerable amount of reference material concerning the provision of microcredit. In order to share this material with other workers in the field, the Foundation decided to prepare a bibliography. The bibliography is not presented as a definitive list of references on the subject. Rather it is an on-going research tool which will be updated regularly. It contains about 315 entries, arranged under the following headings: general, informal sector finance, NGO credit and savings programs and linkages to the formal sector, women and credit, rural finance sector, transaction costs, and specific programs. |