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 at The Hague [video: address by HRH Princess Máxima] 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."

HRH Princess Máxima

High costs
Princess Máxima is special advisor to the United Nations 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 earlier on at the meeting 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 when he spoke at the debate that 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.

Watch the video of the speech by Minister Bert Koenders

The microfinance discussion at RNW is not over...
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Microfinance will be the central theme to RNW broadcasts via radio and the internet from now - January 2010 - and through the rest of the year. In doing this, RNW intends to bring the subject back into the spotlight, drawing the attention of a mass international audience to the opportunities and difficulties involved in microfinance.

In addition to this debate, RNW has made videos showing how microfinance works in practice around the world. During the event at The Hague, one of those portrayed in these videos, tortilla baker Linda Flores from Nicaragua, spoke on how microcredit changed her life.

The programme for 25 January 2010 - hosted by Vanessa Mock, RNW EU correspondent in Brussels - was as follows:

• Word of welcome by Mr Jan C. Hoek, Director General of RNW
• Introduction by Mr Rik Rensen, Editor-in-Chief of RNW
• Video portrait and interview with Ms Linda Flores, micro-entrepreneur in Nicaragua, by Mr José Zepeda, RNW Head of the Latin American section
• Opening speech by HRH Princess Máxima of the Netherlands
• Keynote speech by the Netherlands Minister for Development Cooperation, Mr Bert Koenders.
  In his address (full text), Mr Koenders commented that this debate hosted by RNW has shown that microfinance has come of age.
• Intermezzo by comedian Mr Erik van Muiswinkel
• Interactive panel discussion with Mr Abureza Faisel Rahman (Managing Director of Fair Finance, UK), Mr Klaas Molenaar (President of EMN, Netherlands), Ms Maria Nowak (President ADIE, France) and Mr Fazle Hasan Abed (President BRAC, Bangladesh)
• Intermezzo by comedian Mr Erik van Muiswinkel
• Closing remarks by Mr Jan C. Hoek, Director General of RNW