MEDIA RELEASE
Released By:
Downer
I am pleased to announce the Australian Government will contribute an
additional $1 million to the Consultative Group to Assist the Poorest (CGAP) as
part of the Government's increased emphasis on microfinance as a means of
reducing poverty in developing countries.
A consortium of 29 bilateral and multilateral donor agencies, CGAP's mission
is to help build a microfinance industry that provides poor households with
flexible and high quality financial services on a sustainable basis. This latest
contribution brings Australia's support for CGAP to $2.65 million since
1998.
Microfinance is an important tool in the efforts of the Australian
Government's overseas aid program to assist developing countries at a
grass-roots level. It provides the poor in developing countries with access -
usually in the form of loans - to the small but useful sums of money needed to
start micro-enterprises and reduce their poverty, or to deal with emergencies
and hedge against further poverty.
Microfinance projects often target women. Where women are the source of
increased household income, the standard of living for the family often improves
noticeably. This can also help women's status and power in the family and
community.
Australia supports a number of microfinance projects in countries such as
Vietnam, the Philippines, Bangladesh, Nepal, China and Papua New Guinea.
The decision to increase microfinance expenditure from $6.4 million in
1997-98 to approximately $13 million in 2001-02 recognises the positive impact
microfinance is having in advancing Australia's national interest through the
reduction of poverty in developing nations, particularly in the Asia Pacific
region.
Media contacts:
Matt Francis (Ministerial) 02 6277 7500 / 0419 206
890
Greg Clough (AusAID) 02 6206 4220 / 0417 683 126