workshop was organized within NAM CSSTC programme on the National Support
for Small and Medium Enterprises (SMEs) in NAM member countries.
Availability of capital is an important requirement for the poor and micro
entrepreneurs to succeed in their enterprises. The workshop focused on how
to mobilize micro credit schemes.
workshop was attended by 10 experts
and 10 participants from 14 NAM
member countries in Africa, Central and South Asia, Southeast Asia and Latin
America (in Attachment 1). The workshop
was divided into 4 sessions:
Role of Microfinance in Poverty Eradication;
Support to Micro Financing;
Role of Women in Micro Financing;
Philosophy and Technical Aspects of Micro Credit Services.
papers presented are listed in Attachment 2. In
each session the participants come up with best recommendations on how to
enhance micro finance practices and how to enhance sustainability in micro
expose the workshop participants with real micro finance activities including
best practices in this particular field, on the second day of the workshop,
the experts and participants visited two
micro-finance village units in Cipayung and Cisarua, West Java. These village
units are among the best managed units in West Java. During this field visit
the participants witnessed and observed the daily activities of a typical
micro finance unit. Questions and comments directly addressed to the unit
managers enriched the participants view on how to successfully manage a micro
credit activity. At the end
of the field visit programme, the workshop participants also visited a
micro credit customer who has benefited from that particular financing scheme
in developing his decorative- resin business.
of the salient conclusions can be summarized as follows :
finance needs multi-dimensional and holistic approaches; including
sociological and cultural approaches – using the financial
approach alone is not enough.
main problem of micro financing schemes is mostly how to have access
to the capital.
fundamental issue of commercialization of Micro Finance Institution
(MFI) is how to extend the fund to the SMEs and the poor.
channeling fund to the poor and SMEs, institutions providing micro
credit services could be government, banks (public and private), and
smaller-scale loans, the fund to micro-credit beneficiaries
could be channeled through intermediary conduits such as
of expertise in managing micro finance services
is considered a major problem.
contributing factors to the failure of establishing a sustainable
microfinance are the lack of understanding about the market, over
emphasis on short-term goals, and mixing-up political goals with
to holistic sustainability is to enhance sustainability of the
programme participants as well as the sustainability of the micro
finance organization itself.
many developing countries a community-based approach is commonly
new approach of micro finance to deal with
widespread poverty and women’s empowerment is emerging in
NAM member countries.
are some recommendations pointed out to enhance the sustainability of micro financing practices,
promote professionalism, it is recommended that NAM CSSTC takes the
initiatives to increase cooperation in the fields of comparative studies,
training programme in micro credit services and technical assistance
member countries should promote transparency in micro credit services by
setting up standard performance, establishing rating agencies and
promoting internal control.
is strongly suggested that the government and donors avoid granting
subsidized loans to the economically active poor and micro enterprises.
The subsidy should go to financing infrastructures, training and technical
meeting also identified specific actions and recommendations that could be
taken by NAM Government, NAM CSSTC and MFIs to promote and mobilize micro
finance practices in NAM member countries and also to achieve sustainability
in the programme. These are identified in Attachment
ACTIONS TO BE TAKEN BY NAM CSSTC
on the recommendations made by the four groups discussing on 1) role of
micro finance for poverty eradication; 2) government support to micro
financing; 3) micro credit as a tool for empowering women; and
4) philosophy and technical aspects of micro credit services,
there are several areas of concerns to be further formulated as
follow-up actions by NAM CSSTC, i.e.:
workshop of the stakeholders (by regions) on the “importance and
performance of the micro finance projects”
meeting with different international organization such as the World
Bank, ADB, UNDP, UNICEF, FAO, etc. on “international support and
attention for poverty eradication using micro finance
meetings to formulate data base on micro finance projects
meeting on “legislative environment to support micro finance”
of training manuals/modules on micro finance
on “micro finance” for NGOs/Self-help groups
on “skills improvement related to micro/small business
development” such as micro credit management training.
on “participatory poverty assessment” for participants from
Government Organizations (GOs),
NGOs and Banks.
workshop on “building the capacity of women as managers of
business and households”
of data base software on micro finance projects
projects in setting-up micro credit services
of relationship between government and private sector to support
women self-confidence through mentoring
standard performance, ratings, and internal control of micro credit
of focal points
and dissemination of directory of women business achievement locally
in motivating NAM member countries to be more concerned with micro
financing for the poor
to increase professionalism (capacity building) through comparative
study on best practices
of icon “micro finance” on NAM CSSTC website
communication media among network members, such as: newsletter,
professional contacts, etc.
visit to learn best practices from NAM countries which are leading
in micro finance practices.
and adopting various marketing strategies, such as: loyal membership
award, scholarship, etc.
potential strengths and talents of women