MICROCAPITAL STORY: Foromic Conference, hosted by the Inter-American Development Bank, to Focus on Responsible Finance, Response to International Crises, Rural Finance, Housing, Technology, Venture Capital and the Importance of Networks

On October 8-10, the Inter-American Development Bank (IDB) will host the sixth edition of the Forum on Microenterprise (FOROMIC). Aside from a general discussion on microfinance in Latin America and the Caribbean, the conference will focus on responses to international crises, rural finance, housing, technology, venture capital and the importance of networks. To learn more about this event, please read this previous MicroCapital story.

The main session of the conference will discuss the growing concept of “responsible finance.” Speakers will cover many topics including “transparency to clients, consumer protection, business ethics and conduct, and corporate governance.” They will focus on balancing access and responsibility as more low-income individuals begin accessing financial services. Panelists will include representatives from the Consultative Group to Assist the Poor (CGAP), the IDB, Accion International as well as Felipe Tam Fox, Superintendence of Banks in Peru.

One of the first sessions of the conference will focus on the role of microfinance in responding to economy-wide crises. The group will also question whether or not the microfinance industry can remain resilient to the current food, energy and financial problems that face the global economy. Participants include Ernesto Aguirre of the Consultative Group to Assist the Poor (CGAP), Adrian Gonzalez of the Microfinance Information eXchange (MIX), Alejandro Bertuol of Fitch Ratings and Louise Schneider-Moretto of Women’s World Banking (WWB).

According to the event agenda (available here), the housing seminars will provide an overview of this global “sub-sector” with a particular focus on the sustainability of current programs. Aside from industry overviews, the panelists will also discuss the work of the Swedish Development Authority (ADSI) in Guatemala, where it has implemented several microfinance housing programs. Specific topics will include the role of technology and remittances in the sector as well as the different ways the microfinance can be involved in the housing market. Panelists for each discussion can be found on the event’s full agenda (available here).

In the rural and agriculture financing sessions, panelists will discuss “what is working and what’s not” in helping to foster growth in small agricultural businesses. According to the session summary, financing towards these types of institutions has decreased greatly as rising food and input prices have created volatility and instability in rural markets. Topics will include demand drivers and technological barriers. Discussion will also focus on the roles of financial intermediaries, governments and other institutions. Again, a list of panelists can be found here.

Sessions on the powers of networks will focus on the “the promotion of clusters, productive chains and networks of small businesses in increasing the competitiveness of micro- and small enterprises, generation of profits and reduction of poverty, in the context of local/territorial development.” A special focus will be given to the experiences of the IDB and SEBRAE, the Brazilian small and microenterprise development agency. A separate section of the conference will focus on the ability of networks to improve economies of scale in microfinance. Please refer to the official agenda for an updated list of speakers.

Discussions involving venture capital funds will focus on the experiences and result of three organizations, though only IGNIA and Aavishkaar are currently on the program. These organizations demonstrate the ability of funds to “empower entrepreneurship, generate social impact, and create financial returns for their investors”. To learn about the IDB’s recent investment in IGNIA, please read this previous MicroCapital story.

The role of technology in microfinance will be the most prevalent topic at the conference. While technology will be an important aspect of many of the sessions previously mentioned, two discussions will be dedicated solely to the past successes and the future potential of technology to improve the microfinance sector. The initial session will examine potential areas for technology to improve services. The second discussion will discuss current initiatives and the benefits and challenges on “scaling up” their use and effectiveness. Speakers will include IBM’s Alvaro Martin and Charlene Balick from the Grameen Foundation.

On October 10^th, There will also be a presentation by Robert Wood, Senior Economist at the Economist Intelligence Unit (EIU), explaining the results of the 2008 Microscope. This study was commissioned by the IDB and Corporación Andina de Fomento (CAF), a multilateral financial institution.

By Greg Casey, Research Assistant

Additional Resources:

Inter-American Forum on Microenterprise (FOROMIC): Home

Inter-American Development Bank (IDB): Foromic Conference Full Agenda (available here)

IDB: Home

IDB: Microscope 2007

MicroCapital story, August 19, 2008: “Inter-American Development Bank (IDB) Multilateral Investment Fund (MIF) to Invest USD 5m in Mexican IGNIA Social Investment Fund in Addition to Previous USD 25m Loan from the IDB’s Opportunities for the Majority Initiative (OM)”

MicroCapital story, August 8, 2008: “MICROFINANCE EVENT: Inter-American Forum on Microenterprise (FOROMIC) Hosted by the Inter-American Development Bank”

MicroCapital Story, August 21, 2008: “MICROFINANCE PAPER WRAP-UP: An Investigation of Economies of Scale in Microfinance Institutions, by Joshua Zacharias”

The Microfinance Information eXchange (MIX): Home

Advishkaar: Home

IGNIA: Home