Dec 5 2009
Grameen Foundation and Oxfam America have released a report that analyzes the role played by Microfinance institutions in controlling the impacts brought about by climate change on the poor people. The report titled “Climate Change and Microfinance” was written by Asif Dowla, a Professor of Economics and an expert in Microfinance from St. Mary’s College. This report highlights the most important poverty related issues that are to be discussed at the United Nations Climate Change Conference to be held in Copenhagen next week.
Asia, Africa and Latin America are regions with the maximum number of poor people who are expected to have experienced an increased impact of global warming effects. The poverty status will further increase for those already near the margins. This increase is expected because of the repeated outcomes of natural disasters and disease outbreaks. Asif Dowla in his report addresses all these poverty related issues and provides guidance on “climate-proofing” that can be carried out for the existing services. The report also highlights the insurance offered by the Microfinance institutions towards the operation of various activities in the affected regions.
This report offers important measures that can be applied by the Microfinance institutions in order to improve the disaster management and disaster recovery procedures. These measures include reconfiguration of loans, introduction and expansion of renewable energy, disaster management plans and creation of disaster funds. Livestock, health and other kinds of weather related insurances are expected to be increased. A National Adaption Program of Action is expected to be developed by the joint effort from various civil society organizations and national governments.
Asif Dowla remarked that Microfinance institutions should be more practical in developing long-term plans for managing climate change impacts and natural disasters. Alex Counts, President of Grameen Foundation, stated that Microfinance institutions have already started to provide financial security for the poor people affected by climate change and this highlights the institution’s ability to create a vital impact on the communities and clients they work for.
Source: http://www.grameenfoundation.org/