Microfinance helps achieve MDGs

Microfinance institutions (MFIs) have helped achieve some of the Millenium Development Goals (MDGs).
"Nepal has acheived some of the MDGs due to the MFIs," said National Planning Commission (NPC) vice-chairman Dr Jagdish Chandra Pokharel inaugurating the Microfinance Vision -2015 conference here in the Valley today.
"Though the poverty has reduced to 25.4 per cent -- according to the Labour Survey -- around seven million Nepalis are still under poverty line," he said, adding that due to the large number, its difficult for the government agencies to reach out to them. "Thus, the role of the MFIs is key in reaching them," he added.
Shankar Man Shrestha, chief executive officer of Rural Microfinance Development Centre (RMCD) -- that has organised the Microfinance Vision -2015 conference to formulate a medium-term vision for the coming five years -- also agreed that only the MFIs can reach to the grassroot level.
The two-day conference that kicked off today encourages all the partner MFIs of RMDC to formulate their individual visions for the next five years. "The Centre will consolidate all the visions into one and formulate the National Microfinance Vision-2015 with well-defined strategies and action plan," Shrestha added.
There are around 90 microfinance institutions in operations currently. Out of the them, 86 are associated with the RMDC that provides wholesale credit, institutional strengthening and capacity building supports to MFIs, and training supports to the ultimate borrowers through the concerned MFIs.
"The MFIs need to take help of technology to reach out the people," said Ashoke Shumshere Rana, chairperson of the Board of Directors (BoD) of RMDC.
MFIs have been helpful in creating a just society with women empowerment and economic empowerment.
RMDC’s primary objective is to provide microfinance access, via microfinance institutions, to rural poor households, especially to women. The clients can then undertake viable farm and off-farm economic activities and improve their quality of life.
"Despite success of MFIs and NGOs, we need to take co-ordinated approach to help them reach the poorest of the poor," vice-chair of the national think-tank said, adding thatPoverty Alleviation Fund (PAF), MFIs and Coops should go in an integrated way to penetrate the high level poverty striken areas in the regional and ethnic level, and pocket areas. "Thus the strategy hs to be planned accordingly."