ISLAMABAD - More than 137.5 million of the world’s poorest families received a micro loan in 2010, an all-time high, according to a report released by the Microcredit Summit Campaign (MSC) on Thursday.
The report’s release precedes the Global Microcredit Summit to be held in Valladolid, Spain on November 14-17. The summit will be inaugurated by Queen Sofía and Grameen Bank founder, Muhammad Yunus. At the first Microcredit Summit in 1997, only 7.6 million of the world’s poorest families had been reached. While the growth in numbers has been inspiring, we must keep our attention on the wisdom of the clients. The report tells us that when asked what they want for themselves and their families, their answers include, ‘education for their children, health for their family, decent housing that keeps the rain and cold out, and regular, nutritious meals.’ This is what we will pursue when we gather at the Microcredit Summit in Valladolid”, Prof Yunus said. Assuming an average of five persons per family, these 137.5 million micro loans affected more than 687 million family members, which is greater than the combined populations of the European Union and Russia. Micro loans are used to help people living in poverty in both industrialised and developing countries to expand a range of small businesses, such as selling products in a local market, making clothes, and providing computer and other business services in rural areas.
As a strategic partner of MSC, Pakistan Poverty Alleviation Fund (PPAF) supports the work of MSC in Pakistan. PPAF works closely with MSC for inclusive and improved financial services to the underserved. Since its inception, PPAF has disbursed more than $775 million through 4.7 million microcredit loans. Currently, almost 45 per cent of Pakistan’s 2.1 million borrowers are financed by PPAF through its 52 partner organisations in 92 districts across the country.
While more than 205 million people worldwide received a micro loan in 2010, this multi-year campaign focuses on outreach to the poorest clients. According to the report, over the last 13 years, the number of very poor families with a micro loan has grown more than 18-fold from 7.6 million in 1997 to 137.5 million in 2010. The latest data comes from more than 3,600 institutions worldwide, with more than 94 percent of the information having been collected within the last 18 months. The report also highlights the number of poorest women reached. Not only have these women been excluded from traditional banking, but they are also the ones most likely to ensure that the increased income is used to improve the lives of their children. From 1999 to 2010, the number of poorest women reached has increased from 10.3 million to 113.1 million.
MSC aims to reach 175 million of the world’s poorest families by 2015 and ensure that 100 million of those families move above the World Bank’s $1.25-a-day poverty threshold. MSC is a project of RESULTS Educational Fund, a U.S.-based advocacy organisation committed to creating the will to eliminate poverty. The campaign was launched in 1997 and, in 2007, surpassed its original goal of reaching 100 million poorest families with credit for self-employment and other financial and business services.