Terms
of Reference REGIONAL
TRAINING ON MICRO
CREDIT SCHEME Venue:
Jakarta, Indonesia, August 27-31, 2002 BACKGROUND
Based
on the recommendations of the expert group meeting on “Identification
of Major Issues in Eradicating Poverty and Fostering Rapid and Equitable
Development” in NAM member countries, convened by NAM CSSTC in April
2001, the Centre decided to follow-up with providing a forum for micro
credit institutions and practitioners to discuss and make
recommendations regarding their roles in promoting and mobilizing micro
credit schemes in NAM member countries. It is widely believed that
a properly designed and implemented micro credit schemes is
central to alleviate poverty by providing support for lower-income
groups to increase their income. As
a follow-up of the expert group meeting NAM CSSTC invited policy makers
and practitioners from different NAM member countries who are concerned
with the micro credit services to a workshop held in Jakarta, in June
2002. They have deliberated on the
relevant aspects concerning key issues, technical aspects and policy,
and also to make recommendations to enhance the sustainability of micro
finance institution as well as people’s involvement in such particular
financing scheme. 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. NAM member countries
should promote transparency in micro credit services by setting up
standard performance, establishing rating agencies and promoting
internal control. The meeting also identified specific actions and
recommendations that could be taken by NAM CSSTC to promote and mobilize
micro finance practices in NAM member countries and also to achieve
sustainability in the programme. Based on the recommendations of the workshop, NAM
CSSTC plans to hold series of regional trainings on micro credit
schemes. The first one to be conducted in Indonesia for East Asia and
the Pacific region. OBJECTIVES The main objective of this training is to provide an instant benefit to the micro credit practitioners, especially those from East Asia and the Pacific region. Upon completion of this training the trainee is expected to be able to deliver significant contribution to the development and mobilization of micro credit practices in his/her country. SUBSTANCE,
METHODOLOGY AND EXPECTED OUTPUT Substance The training
substance will be focused on the technical aspects of micro credit. Subjects
to be delivered and discussed include areas such as Philosophy of Micro
Credit, Micro Credit Schemes, Product Innovation, Credit Delivery
System, Loan Analysis, Loan Monitoring and other related areas. Methodology Participatory
approach will be applied during the in-class training session as well as
in-field training session Expected Output Each trainee is
expected to: §
acquire a complete
comprehension on technical aspects of micro credit schemes; §
acquire necessary
skills to mobilize micro credit practices in his/her country; §
produce an action
plan to be followed up upon his/her return to his/her organization. PARTICIPANTS The
trainees should be practitioners, either of non-governmental
organizations or banks dealing with micro credit services in the region
of East Asia and the Pacific. They should be
corresponding to the following requirements: ·
The person must
be actively involved in community development project, preferably in a
micro credit practice in his/her country, ·
The person must
have a basic knowledge in financial analysis and credit delivery, ·
The person must
be able to speak English. DURATION Duration of the
training will be 5 (five) days, August 27 to 31, 2002. VENUE Training
activities will be conducted in Jakarta, while in-field training session
will be conducted in West Java. ORGANIZING
INSTITUTIONS The
meeting is organized by Non-Aligned Movement Centre for South-South
Technical Cooperation (NAM CSSTC)
in collaboration with Bank
BRI, a state-owned bank which is one of the largest commercial
banks in Indonesia conducting a full range of commercial banking
services, domestic and international. NAM CSSTC was
established in 1995 at the eleventh Summit of NAM held in Cartagena, as
one of the vital and effective means for promoting and accelerating
development in the developing countries. Its objective is to enhance the
collective self-reliance of NAM member countries in attaining sustained
people-centered economic and social development and to enable developing
countries to become equal partners in international relations. However,
the functions of NAM CSSTC are not just a forum for dialogue but a
centre for action, pooling the resources to attain the objectives of
both NAM member and non-member countries. The programmes should have
immediate as well as long term impact to render the economies of
developing countries to be more broad-based, efficient and resilient to
participate in the globalization process and to strengthen cooperation
among developing countries. Bank BRI
is the first state-owned bank to operate in Indonesia. It was founded in
1895 which original aim to serve as a deposit point for mosque cash
holdings and give out low interest loans. In its development the bank
has undergone several changes to its name in close relations with
the historical development of the nation, from Hulp-en Spaarbank
der Inlandsche Bestuur Ambtenaren (1912) to Bank Rakyat Indonesia (BRI
1946). Bank BRI’s vision is to become a leading institution putting
customer first. There are three missions have been placed in Bank
BRI’s mind. One of them is to give the best banking service focusing
on micro, small, retail and medium scale enterprises to enhance the
economic activity of the society at large. In line with this, BRI signed
a partnership agreement with the Consultative Group to Assist the
Poorest of the World Bank (1999) to develop the international visitor
program (BRI IVP). The
institution conducts various study tour, in-class training, and
on-the-job training programmes related to BRI microfinance practices,
especially micro enterprises involving the working poor. BRI
IVP will coordinate the training sessions based on NAM CSSTC assessment
and guidelines. TRAINING
AGENDA
TRAVEL AND ACCOMMODATION EXPENSES NAM
CSSTC will pay y-class international airline ticket for trainees from
his/her country to Jakarta, accommodation and food expenses, as well as
domestic transport during training. The sponsored participants comprise
of one participant of each NAM member country in the region of East Asia
and the Pacific. VISA
ARRANGEMENT To
enter Indonesia, generally trainees need to get the appropriate entry
visa. However, it is not
applicable for those who come from ASEAN member countries. If there is
no Indonesia Embassy or Mission there will be local arrangement for
‘visa on arrival.’ Local Committee will provide necessary
assistance.
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