MICROCAPITAL BRIEF: Participants at World Economic Forum Annual Meeting 2011 in Davos, Switzerland, Discuss Non-Payment in Andhra Pradesh, Consumer Protection, Microfinance Regulation

Participants of the World Economic Forum Annual Meeting 2011, which was held in Davos, Switzerland, from January 26 to January 30, discussed the future of financial services for poor people in a session called “Financial Inclusion: Beyond Microfinance.” Discussion topics included the repayment challenges facing microfinance institutions (MFIs) in the Indian state of Andhra Pradesh, scalability, consumer protection and government regulation. Attendees also considered how mobile banking can play a significant role in expanding financial services to underserved populations and what roles savings and remittances play in improving the economic status of low-income individuals. The group agreed that, while government regulation would help protect both wholesale and retail lenders, MFIs should still focus on transparency. Furthermore, the panelists argued, the biggest challenge to expanding microfinance is achieving economies of scale.

The session was moderated by Nicholas Kristof, a columnist from The New York Times. Participants included Jon Fredrik Baksaas, President and CEO of Telenor Group of Norway, a mobile telecommunications company; Geoff Davis, CEO of White Hat Ventures, USA, an education management organization; Anne Hastings, Managing Director of Fonkoze of Haiti, an MFI; Neal Keny-Guyer, CEO of Mercy Corps USA, a global relief and development agency; Rachel Kyte, Vice President of International Finance Corporation (IFC), the financing arm of the World Bank; Vikram Pandit, CEO of Citi USA, a commercial bank; and John Rwangombwa, Minister of Finance and Economic Planning of Rwanda.

By Julie Moksim, Research Associate

About the World Economic Forum: The World Economic Forum is an international organization committed to improving the state of the world by engaging business, political, academic and other leaders to shape global, regional and industry agendas. It is a Swiss nonprofit organization that was established in 1971 in Geneva and is best known for its annual meeting in Davos, which is an invitation-only event that brings together chief executive officers from 1,000 member organizations as well as politicians, representatives from nonprofit organizations (NGOs), religious leaders and the media.

Sources and Resources:

World Economic Forum: World Economic Forum Annual Meeting 2011, “Financial Inclusion: Beyond Microfinance”, http://www.weforum.org/sessions/summary/financial-inclusion-beyond-microfinance

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