MICROFINANCE A POWERFUL FORCE TO FIGHT POVERTY

BANGKOK (United Nations Information Services) -- Successful promotion of the grassroots economy will allow it to achieve its full potential as a powerful force to support a broad range of wealth-creating activities, said the Thai Deputy Prime Minister and Finance Minister H.E. Somkid Jatisripitak on opening the three-day Conference on Microfinance Policy and Governance today. "Such force will be self-sustained and growth-oriented as local communities and expand their commercial activities and linkages, ultimately providing a productive foundation for the economy," he added.

Minister Somkid said that Thailand had begun with the farmers' debt suspension programme to provide much needed relief and new opportunities for farmers. A village revolving fund has also been launched to provide revolving funds for commercial development in the rural areas.

Ms. Keiko Okaido, Deputy Executive Secretary and Officer-in-Charge, a.i. of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said that many countries in the Asian and the Pacific region suffer not only from absolute poverty, but also face widening gaps between the rich and poor, rural and urban, coastal and inner areas, and educated and non-educated.

"These conditions could lead to social and political conflicts if they are not addressed in a timely manner and with effective measures. Some symptoms of such conflicts are already visible in some of the developing countries of the region," she said.

The meeting is expected to adopt a Bangkok Declaration on Microfinance.

The meeting from 6-8 March is being organized by UNESCAP, the Asian and Pacific Development Centre, Asia Pacific Rural and Agricultural Credit Association, and the Asian Confederation of Credit Unions with support from the Japan Foundation, the Leopold Mayer Foundation, the Canadian International Development Agency, Canadian Cooperative Alliance, Initiatives in Research and Education for Development in Asia, and Ethnos Asia.

Approximately 26 countries from around the world are attending the conference held at UN Conference Centre in Bangkok.

For further information contact:

Mr. David Lazarus, Chief
United Nations Information Services/Bangkok
Tel: 02-288-1234; Fax: 02-288-1052
E-mail: unisbkk.unescap@un.org

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