Hi everybody,
Via this blogpost I would like to draw your attention to an interesting on-line discussion (hosted by MicroLink) about the question "can microfinance promote environmnetal sustainability?". This is the link:
Speaker's Corner 29: Microfinance and Climate Change: Can MFIs Promote Environmental Sustainability?
Here's a summary of day one (of three), by Eugene Ionesco :
'Well, it was a great first day and we have two more to go! Thanks to all of you who contributed and to Dan for his leadership. I think it can be safely said that one of the simplest and yet most profound statements made today is that MFIs must search for “Solutions that fit the local conditions” whether it is solar,biofuels, cash crops or organic foods. One size does not fit all and yet a common, shared vision and goals go a long way to moving us in the direction of sustainability for all. As a starting point for this, I would refer the reader to Generally Accepted Environmental Principles (GAEP) developed in 2004 at a workshop co-hosted by GreenMicrofinance. Another of the threads raised the apparent dilemma that as people become more prosperous they naturally consume more energy and resources. And it is here that the opportunity lies to introduce clean energy production and environmental sustainability if this is part of the MFIs vision and is interwoven into its social performance goals. As part of the answer to this dilemma, one contributor suggested Thomas Friedman’s new book, Hot, Flat and Crowded which I can also recommend. The first half is about the reasons why it is in all our best interest to act and then he goes into the opportunities for solutions that this problem has created. There was a great discussion on the effect of environmental degradation on MFI clients and their ability to repay. It was noted that while there is a large amount of antidotal evidence, there have been very few scholarly studies. There was also a very telling question, “Does anyone of an effective awareness raising and/or behavior change program?” To this question I would refer the reader to the ‘fact sheets’ provided by Triodos, one of which is their ‘Social and Environmental Field Guide for Micro Finance Institutes’. Finally, there was a discussion about the impact of the current worldwide financial instability and its potential impact on MFI clients. I’m not sure this was fully developed as I can see several ways in which the ability of MFIs to raise adequate financial resources to serve their clients might be effected. Please join us again tomorrow as we continue to wrestle with these and other critical questions of our time. "It is not the answer that enlightens, but the question." '