Microcredit aids poor, especially women, UN envoy for developing countries says

The top United Nations advocate for poor countries said today that microcredit programmes are the most effective way to aid in development, particularly for impoverished women, and urged Member States to contribute to the funds that supply the money that backs the loans.

Anwarul K. Chowdhury, UN High Representative for the Least Developed Countries (LDCs), Landlocked Developing Countries and Small Island Developing States, told the General Assembly today that the overwhelming majority of people in LDCs live in rural areas "on the brink of survival."

"Microcredit programmes effectively mobilize savings and delivers financial services to the poor, including small holders and self-employed, particularly women," he said. "It has been rightly stated 'Microcredit is foreign aid that works'."

Mr. Chowdhury said that according to UN statistics, "The number of people with access to microcredit schemes has risen from 7.6 million in 1997 to 26.8 million in 2001 - 21 million of them are women, enabling them to control assets, make economic decisions and assume control of their lives."

He added that he would "strongly support" donations to the UN Capital Development Fund (UNCDF), and the World Solidarity Fund, which assist microcredit programmes.