Peter Van Dijk, a consultant based in Indonesia, recently wrote an opinion piece that appeared on the Microfinance Focus website outlining measures to enhance the rights of consumers of microfinance institutions (MFIs).
Referring to the Millennium Development Goals set by the United Nations, Mr Van Dijk is pessimistic about goals involving financial inclusion. He laments that the non-binding nature of voluntary “codes of conduct” cannot be effectively enforced. He stresses that governments should play a central role in protecting the rights of consumers that depend on the services provided by MFIs. In particular, he urges legislators to include a legal definition of consumer rights and pay close attention to abusive practices of MFIs. He argues that “a public body needs to exist that ensures effective access and reinforcement of consumer rights under law. Such a body needs to have adequate authority (legal power), credibility (technical competence) and sustainability (sufficient human and financial resources)”.
About the Millennium Development Goals (MDGs):
Millennium Goals are eight goals set by the United Nations in an effort to address the needs of developing states. Established at the Millennium Summit in 2000, the deadline for completion of these goals is 2015. They include:
1. End Poverty and Hunger
2. Achieve Universal Primary Education
3. Promote Gender Equality and Empower Women
4. Reduce Child Mortality Rate
5. Improve Maternal Health
6. Combat HIV/AIDs, Malaria and Other Diseases
7. Ensure Environmental Sustainability
8. Global Partnership
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: Microfinance Focus: Consumer protection services; empowering the poor in Microfinance:
http://www.microfinancefocus.com/news/2010/09/15/consumer-protection-services-empowering-the-poor-in-microfinance/
[2] MicroCapital Universe: Millennium Development Goals:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Millennium+Development+Goals+(MDGs)
Browse the MicroCapital Universe and add your entry to the wiki at?https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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