FORUM: General Assembly

QUESTION OF: Promoting the role of Microcredit in eradicating poverty in LEDC’s

SUBMITTED BY:

CO-SUBMITTED BY:

The General Assembly,

Recognizing the need for access to financial services, in particular for the poor,
and also for the women, including access to microfinance and microcredit, to
partly support their life financially,

Recognizing also that microfinance, in particular microcredit programmes, has

succeeded in generating productive self-employment and proved to be an effective
tool in the collaboration to eradicate poverty in LEDCS, and has contributed to maintain
their continuing participation and support in these LEDC’s socio-economic and political
progression throughout all these years,

Recognizing further that the importance of microcredit programmes has gone from a low
to a significant level in fortifying the eradication of poverty in several LEDC’s, and further
notifying that many LEDC’s in the world are still in great need of financial support,

Bearing in mind the importance of providing access to microfinance

instruments and services, such as credit, savings, insurance, money transfers and
other financial products and services, for poor people, especially women, in LEDC’s,

Underlining that the current financial crisis in several countries can harmfully impact
financial flows to micro credit and microfinance institutions as well as the services that they
provide to the poor within LEDC’s, and emphasizes that not only such apparatuses should be
protected from potential credit deficiency; they should also be promoted for their wonderful
contributions to eradicate poverty in many LEDC’s,

Noting that the implementation of microcredit programmes has been and would be a
great utility to support the women of LEDC’s,

Noting with appreciation the contribution of awards and prizes to increasing

the visibility and awareness of the role of microfinance, including microcredit, in
the eradication of poverty,

Also noting that the use of microfinance instruments generally, and microcredit programmes
specifically, had contributed into the significant empowerment of women in LEDC’s, and had
also helped to partly eradicate the high percentage of unemployment and poverty within
LEDC’s,

Strongly underlining the fact that access to microfinance and microcredit can contribute to
the achievement of the goals and targets of major United Nations conferences,
for example the eradication of poverty along with gender discrimination,
1. Strongly notes that the reason why these poor people, especially women, in LEDC’s
are stuck in their own financial no-go situation is that they often need help in
investing their money and develop a small business for themselves to progress,

2. Urges for improvements of microcredit programmes to be more constructive

and interesting, for example:
a. Implement more constructive investment
i. Provide the people in these countries skills training,
ii. Plan the enterprise,
iii. Provide loan and small investment fund for the people to start their
own self employed business,

3. Suggests organizing and initializing fund raising programmes and charity

programmes to raise fund for donation to LEDC’s as microfinance loans:
a. Spread awareness of these programmes through popular mass medias, such as:
i. Television Advertisement,
ii. Internet Advertisements,
iii. Newspaper Reports,
iv. Leaflet or Flyers,
b. Send down volunteers or hire actors/ performers to various public sites or
areas that may catch attention where they would exhibit/perform:
i. Informational drama performances or skits,
ii. Presentations to spread awareness,

4. Strongly recommends members of authority in schools or companies to put up

informative presentations to spread awareness of situations such as but not limited to:
a. Current Financial Crisis,
b. Poverty within LEDC’s,
c. The importance of microfinance in eradicating poverty,

5 Requests the Human Development Initiative Extension board to provide greater

access to microfinance for developing LEDC’s and their people,
a. Strongly supporting small farmers within supported and unsupported
LEDC’s to provide them the opportunities to start their businesses, and to improve
agricultural production in these countries,
b. Providing sufficient support and training to promising entrepreneurs within
these LEDC’s to help stir up entrepreneurship,

6 Recognizes that microfinance has experienced tremendous growth in the

number of people served and the diversity of financial services offered, and that,
along with the growth in numbers served as well as products and services offered,
there has also been a large increase in the number of public and private
microfinance providers,

7 Calls upon the United Nations system and other stakeholders to fully promote the
role of microfinance apparatuses, including/especially microcredit, for the fortification
of poverty eradication and especially for the empowerment of women in the rural
society, and to ensure that best practices in the microfinance segment, especially
microcredit, are widely disseminated along LEDC’s:
 a. Encourages the Human Development Initiatives Extension (HDIE)
segment of the United Nations to continue to develop and disseminate their
microcredit programmes along even more LEDC’s,

8 Invites Member States, the United Nations system, regional development banks and
other relevant stakeholders to support financially and technically in the efforts of
developing LEDC’s and provide extensive training in order to expand their
productivity and services, by improving their policy and regulatory framework skills,

9 Invites Member States to consider adopting policies to facilitate the

expansion of microcredit and microfinance instruments in order to fulfill the unending
demand among poor people for financial services, including the identification
and development of mechanisms to promote access to sustainable financial services,
the removal of any and all barring obstacles, the promotion of financial
literacy and also the preconditions of motivations that meets the social demand to
provide firm and better financial services along the segment of microfinance,

10. Encourages Member States to approve to coherent financial regulatory

frameworks that can effectively protect the stability of their own national financial
systems and increase access of the poor to helpful financial services, and also to
protect consumers, especially the poor,
a. Urges Member of States to disseminate information about financial service to
rural and partially isolated villages…about the offered financial services,
b. Recommends Member of States to send down informational guides/troops to
provide helpful information and to spread awareness about microcredit programmes
and financial services to rural villagers,

11. Strongly recommends Member of States and Government of many countries to

adjust their fiscal policies in the effort to reduce unemployment, which would
eventually lead to the partial eradication of poverty,

12. Further underlines that the current financial crisis can adversely act as an
obstruction to the public desire of eradicating poverty within LEDC’s, therefore
requires immediate actions, such as but not limited to:
a. Urges Member of States in many different countries to make attempts into
fortifying the current financial crisis:
i. 2007-present liquidity shortfall within the United States banking
system.