Government officials and executives from development institutions recently commented on the role that microfinance can play in helping poor and rural communities in developing countries address the ongoing problems associated with climate change at the recent Climate Investment Funds (CIF) 2011 Partnership Forum in Cape Town, South Africa. The Climate Investment Funds are administered by the World Bank Group and funded by multiple multilateral development banks (MDBs).
A recent article from Italy-based Inter Press Service made note of several ongoing efforts to improve the linkages between access to finance and efforts to address climate change. These include subsidies for a Ugandan water supply company and a crop insurance program offered by M-Pesa, a Kenyan mobile banking service. One program, the Global Partnership on Output-Based Aid (GPOBA), funds local financial institutions to help them finance the basic needs of clients, including “infrastructure, technology, healthcare and education, that will help them deal with climate change,” says senior specialist Mustafa Hussain. GBOPA is a partnership between the World Bank, a multilateral financial institution; the International Finance Corporation (IFC), the private-investment arm of the World Bank; and the international development agencies of Australia, Sweden, Britain and the Netherlands. In 2010, GBOPA funded 131 climate-change focused projects with a total value of USD 6.3 billion.
By Rohan Trivedi, Research Associate
About The World Bank Group:
The World Bank Group consists of five institutions, all of which are owned by member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Sources and Additional Resources:
[1] Inter Press Services: “Microfinance Can Help Rural Communities Adapt To Climate Change”, http://ipsnews.net/news.asp?idnews=56242
MicroCapital Universe Profile: The World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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