The United States Senate recently introduced the Microfinance and Microenterprise Enhancement Act of 2011, which proposes that the United States Agency for International Development (USAID) focus its financial inclusion efforts on incorporating the use of technology and serving vulnerable groups, very poor people and women, [2]. The bill authorizes USAID to use 1 percent of its development assistance budget for 2013 through 2017 to create a fund to support innovation in financial products and technologies. In addition, it directs USAID to develop regional funding targets based on local poverty levels. The Senate Committee on Foreign Relations is reviewing the bill, after which it will be sent to the senate floor for voting [1] [2].
By Natalie Baer, Research Associate
About the United States Agency for International Development (USAID): The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to underserved borrowers. USAID had a total of USD 23.8 billion in budgetary resources in 2011.
USAID offers a suite of resources aimed at improving the outcomes of microenterprise development research and practice at http://microlinks.kdid.org/.
Sources and Additional Resources:
[1] Congress Addresses Financial Inclusion and Client Protection Principles
http://centerforfinancialinclusionblog.wordpress.com/2012/02/16/congress-addresses-financial-inclusion-and-client-protection-principles/
[2] S.2027 – Microfinance and Microenterprise Enhancement Act of 2011
http://www.opencongress.org/bill/112-s2027/show
MicroCapital Universe Profile, United States Agency for International Development (USAID) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+International+Development+%28USAID%29
MicroCapital story, February 1, 2012, “MICROCAPITAL BRIEF: United States Agency for International Development (USAID) Provides $2.71m Loan Guarantee to Cambodian Microfinance Institution Thaneakea Phum to Support Agriculture” https://www.microcapital.org/microcapital-brief-united-states-agency-for-international-development-usaid-provides-2-71m-loan-guarantee-to-cambodian-microfinance-institution-thaneakea-phum-to-support-agriculture/
MicroCapital story, May 10, 2010, “MICROCAPITAL BRIEF: The GROWTH Act is Introduced In the US House of Representatives” https://www.microcapital.org/microcapital-brief-the-growth-act-is-introduced-in-the-us-house-of-representatives/
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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