Organisation of Islamic Cooperation
The Collective Voice of The Muslim World
Date: 09/07/2007
ISTANBUL, 9-11 JULY 2007. Distinguished Participants, Ladies and Gentlemen, I am pleased to address this gathering on the occasion of this important workshop on “Micro-Credit Financing and Poverty Alleviation in Member States” as the theme for the Exchange of Views Session of the 23rd Session of the COMCEC, due to take place in November 2007 in Istanbul. I would like, first of all, to express my thanks to the SESRTCIC (Ankara Centre) for organising this workshop and for the warm welcome and generous hospitality extended to all participants. I would also like to convey my thanks to all other OIC institutions, particularly the IDB, and the experts and Member States who participate and contribute to this workshop. I would like to seize this opportunity to commend the role played by the COMCEC in enhancing cooperation and exchange of views on various issues of concerns to the Member States. The fact that it has chosen the theme “Micro-Credit Financing and Poverty Alleviation in Member States” for the exchange of views at its forthcoming session, shows its keenness to contribute to the implementation of the OIC Ten-Year Programme of Action. Mr. Chairman The Ten-year Programme of Action, gives special attention to the issue of alleviating poverty and capacity building in the OIC member states, particularly in the least developed members. It also called for promoting activities aimed at achieving economic and social development in the OIC member countries, and participating in international efforts to support programmes aimed at alleviating poverty in the least developed member countries. It is a matter of common knowledge that micro-credit financing offers one of the key instruments and significant source for reducing poverty. The UN Millennium Project identifies micro-credit as one of the development strategies that should be implemented and supported to attain the bold ambition of reducing world poverty by half. One of the most prestigious awards in the world, the Nobel Peace Prize, was given to Muhammad Yunus for his pioneering role in the development of the micro-credit sector. Yet, although micro-credit financing is considered as one of the most powerful tools for combating poverty, the sector still faces several serious problems. Despite high repayment rates, the cost of operating micro-credit financial institutions is much higher than their traditional commercial counterparts. These institutions usually charge excessively high interest rates to cover the high administrative costs of the micro-loans they offer to the poor people. This reality creates a tension between sustainability of the micro-credit sector and the outreach. It also makes it a challenge to regulate micro-finance institutions. In line with this basic recognition, this workshop bears a distinct interest and offers an opportune occasion for the member states to exchange views and experiences, and to identify optimal ways and means for implementation of various micro-credit schemes for alleviating poverty in their respective countries. It will also help them evaluate their needs and capacities in this important field, identify certain practicable project ideas and draw up concrete recommendations that need to be implemented. I am confident that the outcome of the present workshop will provide a valuable input for the discussions to be held and the resulting decisions to be taken during the Exchange of Views Session of the forthcoming COMCEC meeting, and subsequently for the implementation of the OIC Ten-Year Programme of Action. In conclusion, I would like to express my best wishes for a successful workshop and thank you very much for your attention. Wassalamu alaikum wa rahmatullahi wa barakatuhu.
