Princess Máxima of the Netherlands has appealed to the international community to allow people in poor countries easier access to financial services. Microcredit, which enables poor people to set up their own small businesses, is important. But what is more important is that they become, at the micro-level, a full-blown component of a healthy financial system.

The Princess was speaking at a microfinance meeting in the Peace Palace in The Hague organised by Radio Netherlands Worldwide. "What I would like to make clear here is that we are inclined to focus on loans, while other financial products like savings are possibly more important for poor people."
 
High costs
Princess Máxima is special advisor to the UN Secretary General on universal access to financial services. She pointed out that the effects of microcredit are not always all that clear. Because the loans are involved are tiny, the banking costs are relatively high. And the recipients do not always realise what the implications of a loan may be.
 
Journalism
This was the theme explored by RNW's editor-in-chief Rik Rensen. He pointed out that we must not be blinded by the success stories. Microfinance only works for people who can deal with the accompanying responsibilities, and a great deal can be learned from the mistakes of others. "We intend to use journalism on this theme to bring people from different parts of the world into contact with each other."
 
Who profits?
Dutch Development Cooperation Minister Bert Koenders said it was Radio Netherlands Worldwide's "core business" to alert recipients of microfinance and the general public to the central issue of the meeting: "Who profits?" There are banks and other organisations in this sector too which are just out to make quick profits. In the meantime, the minister promised, he will work hard to improve access to financial services in poor parts of the world.

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