Introducing the Microfinance Capacity Building Act of 2008

INTRODUCING THE MICROFINANCE CAPACITY BUILDING ACT OF 2008 -- (Extensions of Remarks - September 18, 2008)

* Mr. BOOZMAN. Madam Speaker, today my colleague Mr. Meeks and I are introducing the Microfinance Capacity Building Act of 2008. This bi-partisan effort aims to build the human capacity of microfinance networks working to empower the poor in developing countries across the globe.

* Microcredit--the provision of small, collateral-free loans to the poor in developing nations enable poor families to increase their income and have an immediate and lasting impact on quality of life--the ability to afford food, shelter, education and healthcare. As business income increases, the business is able to expand, and the effect spreads beyond the family into the local community, through employment and contribution to the local economy. Thus, the benefits of microfinance help grow not just businesses, but stronger communities as well.

* It is widely recognized that the lack of human capital is the greatest constraint to the growth of practitioner organizations in the microfinance industry. According to some industry estimates, in order to meet the anticipated demand for microfinance, the industry will have to hire 1.6 million new loan officers alone in Africa, Asia, Latin America and the Near East, assuming a loan officer to client ratio of 1:300. And that figure does not include the skilled middle and senior managers that microfinance organizations are struggling to find and retain.

* The microfinance capacity-building activities supported by this legislation are intended to drive innovation and provide comprehensive solutions that address the lack of human capacity in developing countries, particularly in sub-Saharan Africa. These activities will provide a framework for a regional and sub-regional approach to maximizing economies of scale and should focus predominately on educating and training country nationals in order to build capacity in the microfinance industry in developing countries.

* Through its strategic investment in building microfinance human capacity, this bill would make it possible for more of the world's poor to access financial services to enable them to start or expand a business, develop a steady income and create jobs for their neighbors.

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