The Micro credit Summit took place during 2nd to 4th February, 2005 with Washington DC as its venue. As many as 137 nations and 2,900 people assembled for the Summit. The Summit gave shape to a campaign, wherein an agenda was worked out for the next nine years. People from all walks of life gathered at the Micro credit Summit.
Some of the prominent incidents have been recorded in the write up below.
Essence of the Micro credit Summit 2005:
During the course of the Micro credit Summit 2005, it was decided that during the following nine years, all efforts would be made to extend assistance to approximately 100 families regarded as the poorest. Special attention would be paid to the womenfolk who were self employed.
Outcome of the Micro credit Summit 2005:
It was ensured that the Summit would have a positive effect on the families and clients.
One aim of the Summit was also to extend financial assistance to the families regarded as the “poorest”.
Empowerment of the womenfolk by reaching out.
Building financial institutions which were self sufficient.
Reasons for paying more importance to the womenfolk:
It is a well known fact that women are responsible for the upbringing of the future generation. They also provide a source of livelihood in the event when they start earning for the family. Statistics show that as many as 1.2 billion people have less than USD$1 a day, which does not suffice all their needs.
Definition of the “poorest families” as per Micro credit Summit 2005:
“Poorest families”(in developing nations) are defined by the Summit as the 50% of the families who live below the poverty line of their country. The 50% of the families are calculated from the bottom. This definition is for the developing countries. In case of industrialized nations, families dwelling below the poverty line are regarded as poorest. As per estimates worked out by the World Bank, approximately, 1.2 billion individuals or near about 240 households live on USD$1 or less.
Loans provided to individuals for promoting self employment:
It has been observed that in the majority of the developing nations, approximately 50% of the work force consists of people who are self employed. These workers cannot afford to take loans on a large scale or for large amount. In that case, the only alternative is that credit can be availed by these individuals in smaller amounts. In course of time, by moving ahead step by step, the income of these households improve. Services and facilities like support from peers, networking, savings facilities and training programs are extended as per the Micro Credit Summit 2005. It has also been observed that these workers make payments regularly as compared to the ones who take loans of a huge amount. This is triggered by the fact that the model on which the micro credit loan facilities work necessitate repayments regularly.
Last Updated on : 30th July 2013