NEWSPAGE 09 March
2011

NEW ZEALAND: Pacific People's Advisory Panel members announced

(Photo: Samoa Observer)

SAMOA: Milestone for 128 million of the world’s poorest
Source: Samoa Observer

More than 128 million of the world’s poorest families - including thousands in Samoa - received a microloan in 2009—an all-time high, according to a report released by the Microcredit Summit Campaign.

Assuming an average of five persons per family, this means that loans to 128 million poorest clients affected some 641 million family members, which is greater than the combined population of the European Union and Russia.

Microloans are used to help people living in poverty start or expand a range of small businesses, such as selling basic staples, producing handicrafts, and delivering cell phone services to remote villages.
“Microcredit has very effectively lifted millions of poor women and their families out of poverty,” said U.S. Ambassador-at-Large for Global Women’s Issues Melanne Verveer.

“With the 100th anniversary of International Women’s Day being celebrated on March 8th, it is gratifying to see that over 81 percent of the very poor who received microloans were women - that is more than 100 million people.

“Women entrepreneurs are one of the smartest investments in microfinance. Not only have they shown strong returns in the success of their businesses, but they consistently have demonstrated high loan repayment rates and they re-invest in their families and their communities.”

Overall, more than 190 million people had a microloan in 2009; however, the Campaign focuses on the 128 million poorest.

In the 12 years since the Campaign’s founding, the number of very poor families with a microloan has grown more than 16-fold from 7.6 million in 1997 to 128 million in 2009.

The report includes data from over 3,500 institutions with more than 93 percent of the information collected last year and verified by a third party.

The State of the Microcredit Summit Campaign Report 2011 also announced the development of a Seal of Excellence for Poverty Outreach and Transformation in Microfinance which has been under discussion for 11 months and will continue to evolve throughout this year and beyond with input from a broad range of stakeholders.

The Seal will recognize those institutions doing the most to help families lift themselves out of poverty.

Acknowledging the range of critical initiatives in the microfinance field, Campaign Director Sam Daley-Harris said, “The Seal is working to build on the Smart Campaign’s client protection principles and the work of the Social Performance Task Force and is discussing ways to implement the seal that would use the systems that have already been developed for understanding the social performance of microfinance institutions.” The draft concept note and a request for feedback can be found here: http://www.microcreditsummit.org.

“With such incredible growth in microfinance there is a need for some certification, some objective measurement that makes it clear to the outside world that these are the goals of those microfinance institutions that are committed to reducing poverty and these are the institutions reaching those goals,” said Chuck Waterfield, founder of MicroFinance Transparency.

“Efforts such as a Seal of Excellence on Poverty Outreach and Transformation are needed — and needed now.”

The report also addresses the debates in the microfinance sector over the initial public stock offerings (IPOs) at two microfinance institutions: Compartamos in Mexico and SKS in India.

Those in favor of this move argue that commercial finance is a critical source of funds for the field. They also believe that the large profits generated for investors and senior management will attract additional commercial investors.

Critics worry, however, that investors profiting from an industry created specifically to benefit those in poverty undermines the perception, purpose, and integrity of the microfinance field.

In the report, leaders from Compartamos and SKS write in favor of the IPOs and critics respond. Vikram Akula, founder of SKS and a leading IPO advocate, argues that, “From a client perspective, it does not matter whether the investors are earning very high profits or not.

What matters to them is, are they getting a loan on time, can they generate income, and can they get their families out of poverty?” But David Porteous, Presdent of Bankable Frontiers, worries about the long-term consequences of negative publicity that includes some cases of abusive collection practices and of people getting rich by providing loans to the poor.

In an extended interview in the report, Sir Fazle Abed, the founder of BRAC in Bangladesh, who was knighted last year by Queen Elizabeth for his work in ending poverty, speaks of the great hope and the troubling concerns in the field today.

“Microfinance is the most exciting thing that has happened to poor people over the last 30 years in terms of social inclusion,” he affirmed.

“By ensuring financial inclusion we have worked with the poor in a way that honors their dignity, and we have shown that poverty alleviation needs a multi-pronged approach.”

When asked about his concerns he replied, “There is a lot of greed coming into microfinance. A lot of people wish to make a lot of money out of it, and that worries me.

Although I understand the rationale - when return on investment is high, more money will flow into the sector, but people should not take advantage of it and make money out of poverty.”

He also stressed that the sector needs to address the issue of over indebtedness that may be affecting some segments of the borrowers and not lose sight of its development focus.

Nobel Peace Prize Laureate and Microcredit Summit Campaign co-founder Professor Muhammad Yunus hopes that microfinance institutions will remain committed to their mission of helping the poor by charging low interest rates and that appropriate laws will be adopted for MFIs to access local deposits and to be able to lend out those deposits rather than seeking loan funds from commercial investors.

In the report, Professor Yunus focuses on a new category of business named social business.

This is a non-loss, non-dividend company dedicated to solving social or economic problems.

With Danone, the French yogurt maker, Grameen companies have launched one such business to address child malnutrition in Bangladesh, producing a very low-cost yogurt that contains all the micro-nutrients that children are missing.

With Adidas, the German shoe manufacturer, Grameen has initiated another social business that will provide shoes for less than US$1.50 per pair to poor people in Bangladesh.

“This will have an enormous impact on health,” said Prof. Yunus, “because poor people suffer from diseases like hookworm that come through the skin of their feet. We want to make low-cost shoes that children and adults can afford to wear all the time.”

“It's important to note that microfinance is so much more than just credit for microentrepreneurs,” said Larry Reed, the report’s author and former CEO of the Opportunity International Network.

“Some of the most compelling impact data is coming from savings programs for the poor and very poor, and there is a lot of promise in outreach to rural areas, including agriculture finance and insurance, especially when integrated with other development efforts.”

"South Pacific Business Development (SPBD) is a network of Microfinance Institutions working in Fiji, Samoa, and Tonga dedicated to eradicating poverty by empowering women in poor rural villages with the opportunity to start, grow and maintain sustainable, income-generating micro-enterprises, build assets, as well as, finance home improvements and childhood education.

“We provide clients with a range of training, financial services and ongoing motivation so that they can climb permanently out of poverty. SPBD anticipates launching greenfield microfinance operations in other Pacific Island countries such as the Solomon Islands at the end of 2011.

The creation of a region-wide microfinance network in the broader South-Pacific through our holding company, SPBD Microfinance Holdings (Singapore) Pte Ltd, could help over 60,000 poor Pacific islanders find a meaningful path out of poverty and could directly impact another 300,000 immediate family members in the region."

Janet Bett a client and staff member of the microfinance institution Jamii Bora in Kenya exemplifies the transformational dimension of microfinance. When the abuse in her home became unbearable, she left her husband to live on the streets.

She cared for her six children as best she could and survived by begging. After seven years of homelessness she met Jamii Bora founder Ingrid Munro who arranged a place for Janet and her children to stay. Munro encouraged Janet to start a weaving business.

After saving $5-$10 dollars each, a total of 50 women beggars received their first loans from Munro, and Jamii Bora was born. Today, Janet serves as a senior manager at Jamii Bora and all of the members on her team have been beggars themselves at one time.

When they meet a potential member who does not believe that his or her life can change, Janet tells them, “If I could do it, you can, too.” Janet is proud of her children who have finished university. Three are teachers, one is a pharmacist and the other works in a medical clinic.

In 1997, fewer than 8 million of the world’s poorest were receiving microloans. Now Janet Bett has played a part in helping to reach more than 128 million very poor clients.

The Microcredit Summit Campaign 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.


SPBD Samoa Microfinance

Launched in 2000, it has become the largest microfinance institution on the islands of Samoa. So far, the company has worked with over 14,000 low-income families in 415 village centers, disbursed over 31,000 loans and have now lent over $37,000,000(million) tala.

SPBD provides not only small, unsecured loans of WST1, 000 (~US$400) to groups of rural women, but also savings and life insurance products.

The women micro-entrepreneurs are given training, ongoing guidance and motivation for the purpose of being able to wisely invest their loans into starting small income generating endeavors, based on their existing livelihood skills, and then growing them in order to work their way out of poverty.

This is a very structured program with clear rules and goals. Furthermore, from their second loan onwards, members are also encouraged to invest the proceeds of their loans into basic housing improvements and childhood education.

SPBD Samoa helps to ensure the children of all its members receive a proper education by providing financing to pay for school fees, school uniforms, and textbooks.

Photo Caption: Lina, of Samoa, is among millions around the world who have improved their lives with money from micro-financing loans.
 

(Photo: Australian Department of Defence)

AUSTRALIA: Senator Feeney joins reservists and employers in the Solomon Islands
Source: Australian Department of Defence

Senator David Feeney, the Parliamentary Secretary for Defence, will travel to the Solomon Islands to participate in Exercise Boss Lift (7-10 March).

Senator Feeney and the employers, primarily from South Australia and Tasmania, will see Reservists deployed on Operation ANODE, Australia’s contribution to the Regional Assistance Mission to Solomon Islands (RAMSI).

“Our Reservists are making a significant contribution to the stability and security of the Solomon Islands,” said Senator Feeney.

“We are extremely proud of their efforts and I also acknowledge and thank their employers for supporting their Reservists.

“Exercise Boss Lift will give these employers a genuine opportunity to see how Reservists’ training builds confidence, problem-solving skills, leadership ability and other attributes that are highly valuable in the workplace.

“I look forward to my first Boss Lift and encourage all Australian employers to support ADF Reserves.”

Exercise Boss Lift is a Defence program, coordinated by Cadet Reserve and Employer Support Division, which provides employers of Reservists with first-hand experience of the work that their civilian employees undertake when rendering Defence service.

For more information visit www.defence.gov.au/reserves or call 1800 803 485.

Photo Caption: Australian Parliamentary Secretary for Defence, Senator David Feeney.
 

(Photo: TVNZ ONE News)

KIRIBATI: Kiribati teenagers under threat from global warming
Source: TVNZ ONE News

Teenagers in the central pacific are badly affected by global warming, according to a new UNICEF report.

UNICEF has looked at the state of the world's children with a special focus on the low-lying Kiribati atolls.

All but one of the 33 islands are completely flat so high spring tides and storms have a frightening effect, and rising sea levels have started to contaminate wells with salt water.

President Anote Tong said he believes his country could be uninhabitable in 30 to 40 years.

"As a leader, I do hope that the world community will listen to what we are saying because we are talking about young people. We are talking about real human beings whose lives are at stake, and whose futures are at stake," Tong said.

Tong said small measures, like planting along disintegrating coast, helps Kiribati combat global warming.

As well as practical prevention measures, youth groups have been holding workshops around the islands.

Iaoniman Kambati is helping with workshops and said people on the atoll need information to understand what is happening to their home.

He said young people are always looking to the future and for ways to protect their home from effects of global warming.

"As young people who will be leaders tomorrow, you know we are not just sitting around doing nothing. We are trying to do something about his issue," Kambati said.

New Zealand is giving $16.5 million to help Kiribati combat global warming.

Photo Caption: A rising sea level poses a serious threat to the small Pacific atoll nation of Kiribati.
 

(Photo: Oceania Football Confederation)

VANUATU: PVFA donates uniforms to local clubs
Source: Oceania Football Confederation Press Release

The three clubs in Port Vila will look the part when they take the field in the TVL Premier League after being handed brand new playing strips.

The Port Vila Football Association, the largest in the country, donated the sets of uniforms to the Ifira Black Bird, Shepherds United and Yatel clubs this week as part of its goal to develop football in the region.

The kit has been supplied by Lotto New Zealand and all the shirts have numbers on the back and the names of each club.

"One of our main objectives in the league is to upgrade the standard of football in Port Vila by supplying good uniforms to the top clubs," Vanuatu Football Federation (VFF) competitions manager Robert Calvo says.

"This is not the first time our league has supplied team uniforms for top clubs in the TVL Premier League. Last year, the league bought five full sets of uniforms for Tupuji Imere, Tafea, Amicale, Spirit 08 and Academy."

The clubs involved are delighted to have received the strips.

"We are so grateful for this generous donation from the Port Vila Football Association," Joel Pakoa of Shepherds United says.

"Their donation to our clubs will enable us to help our players continue to train hard and play quality football in the league."

Calvo says the cost of the uniforms and shipment from New Zealand comes to around VUV 600,000 and will be met entirely by the PVFA.

For more on Vanuatu football go to www.vanuafoot.vu

Photo Caption: Representatives from each club proudly show off the new shirts.
 

(Photo: International Institute for Sustainable Development)

WORLDWIDE: Forum to move beyond basic education for girls
Source: Pacific Islands Forum Secretariat Press Release

In a statement to mark the 100th anniversary celebration of International Women’s Day on 8th March 2011, the Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade says “Pacific women and girls deserve not only equal access to education and training in science and technology but support from society and employers when choosing this career path.”

“The theme for this year’s international women’s day - ‘equal access to education, training and science and technology: pathway to decent work for women’ is apt for the Secretariat given the recently endorsed Pacific Education Development Framework (PEDF). The Framework seeks to coordinate regional activities and provide advocacy and a leadership role in policy dialogue at the regional level and was endorsed by all member countries of the Pacific Islands Forum,” says Mr Slade.

“The Framework, which has been endorsed by all Forum Education Ministers includes gender as a cross-cutting issue thereby committing their countries, the Secretariat and development partners to working strategically to ensure gender issues are considered across all the education sectors.”

A working group, which includes development partners, has been formed by the Forum Secretariat to track the implementation of the Framework at regional and country levels to ensure all the priorities including gender concerns are achieved. This will also include addressing the lack of disaggregated data at all levels of education, sensitizing education personnel to gender issues and gender stereotypes perpetuated by the education system including the curricula and textbooks. The Framework not only focuses on formal school education but on non-formal education, teacher education and systems of governance and administration and technical and vocational education and training.

Whilst the Framework does not direct the work of the Ministries for Education at the national level, the Secretariat through the working group can provide strategic advice on the importance of ensuring gender is integrated into national education systems and support where needed.

The Forum Secretary General, Mr Slade commended the Samoan government for including gender awareness and analysis in teacher training and the Solomon Islands government for recently commissioning a research on barriers to education at the national level.

“I understand that the Solomon Islands study also included gender dimensions in the barriers to education and I look forward to the official release of this study,” says Mr Slade.

The Forum Secretariat has a Gender Policy that promotes comprehensive analysis of gender issues in the region concerning the work and mandate of the Secretariat. Implementation of this policy includes facilitation and supporting initiatives of member governments in mainstreaming gender into national and regional development processes.

Among other areas of work, the Pacific Islands Forum Secretariat through the Leaders communiqué has established a Reference Group to address Sexual and Gender Based Violence in the region. The Group comprises of senior representative each from three Forum member governments, a CROP agency, the United Nations and civil society.

The Reference Group has been mandated to support Governments address sexual and gender based violence in the context of their national and international commitments to gender equality and human rights; to contribute to the building of knowledge and evidence to inform policy, legislation and national programmes to address the issue of sexual and gender based violence; to identify future challenges to the Pacific region in the area of sexual and gender based violence, and to identify preventative activities the Forum Secretariat could support; and to discuss and monitor the progress of implementation of new activities and policies resulting from the work of the Reference Group.

The Pacific Islands Forum Secretariat congratulates member countries for the advancement made in promoting and protecting women’s rights through legislation and polices, their Universal Periodic Review reports and for highlighting issues faced by women in their respective nations. The Secretariat remains committed to working with member states to fulfill their international obligations in ensuring that women’s rights are promoted and protected in the region and recognizes and acknowledges the work of CSOs and NGOs in the promotion and protection of women’s rights in the region at the national and regional level.

Photo Caption: Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade.