Building Inclusive Financial Sectors: A Multistakeholder Dialogue

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Building Inclusive Financial SectorsA
Multistakeholder Dialogue Amman, October 12, 2004
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• The Context
• A Double International Commitment
• The Monterrey Consensus on Financing for
  Development (2002) is the basis of a commitment
  to building appropriate financial services for
  households, micro-, small and medium enterprises.
• The International Year of Microcredit 2005 is
  committed to promoting the building of
  inclusive financial sectors that help people
  improve their lives and launching a challenge to
  national governments.

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Vision Scale up
efforts and build industry capacity to meet unmet
demand for microfinance
Av. Loan O/S
Current supply of financial services reach only a
small fraction of the six billion people in the
world, mostly wealthy/corporate clients
High income clients served
To reach our vision we need to
100GDP

• Dramatically increase access to financial
  services
• Establish prudential means to use microfinance
  most effectively to alleviate poverty

Unmet worldwide demand for financial services is
staggering
Gap
10GDP
Not served
The portion of poor clients served is small but
rapidly growing 25 to 30 percent annually over
the past five years
0.5GDP
Low income clients served
Current Situation
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Blue Book on Building Inclusive Financial
Sectors Objectives and Outcomes
Objectives

• Develop a common understanding of the constraints
  to building inclusive financial sectors in
  different country settings and opportunities for
  action
• Develop a compelling analysis, a Blue Book on
  Building Inclusive Financial Sectors that will
  provide information, analysis and guidance
• Adopt the Blue Book as a tool to stimulate
  concrete action at the country level.

Outcome

• The preparation of a Blue Book on Building
  Inclusive Financial Sectors to be submitted to
  the General Assembly in fall 2005.
• Follow-up by national governments.

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• The Process
• Bringing together over the coming months a wide
  range of stakeholders though multistakeholder
  dialogues, direct interaction with stakeholder
  groups and contributions via the web site.
• Participants will address this basic question
• Why are so many bankable clients unbanked?
• Consultations will culminate in a Global Meeting
  in May 2005.

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Proposed Organization of Session

• Program
• Introductory Statements
• Round Table Discussions in small groups
• Presentation of results
• Discussion in Plenary and Conclusions
• Identification of Ways to Pursue Dialogue in
  Middle East and North Africa Region

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Round Table Discussions
Why are so Many Bankable Clients Unbanked?

• On the basis of the set of questions provided as
  guidance, identify the five key constraints to
  greater access
• Bring in examples based on your own experience
• Identify the major challenges to the development
  of inclusive financial sectors over the next 5
  10 years
• Prepare one sentence vision statements on
  building inclusive financial sectors
• Provide suggestion for further dialogue in the
  region.