[Congressional Record Volume 154, Number 149 (Thursday, September 18, 2008)]
[Extensions of Remarks]
[Pages E1848-E1849]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCING THE MICROFINANCE CAPACITY BUILDING ACT OF 2008

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                           HON. JOHN BOOZMAN

                              of arkansas

                    in the house of representatives

                      Thursday, 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.

[[Page E1849]]

  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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