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SOURCE : Pilot Project Set to Assis



Subject: SOURCE : Pilot Project Set to Assist 30,000 Households Through Micro-Credit Schemes

SOURCE : MYANMAR INFORMATION COMMITTEE,  YANGON
          Information  Sheet ,No.B-1129(I)  2ndNovember,1999 

Pilot Project Set to Assist 30,000 Households Through Micro-Credit Schemes

       A Microfinance Seminar jointly sponsored by
Cottage Industries Department of the Ministry of
Cooperatives and the United Nations Development
Programme was held at International Business Centre on
1 November, with an address by Minister at the State
peace and Development Council Chairman's Office
Brig-Gen Abel. He said " The micro-credit project was
piloted under the HDI-E phase with UNDP inputs of US$
3.9 million with government contribution of K 27.965
million in kind and cash with the goals set at
assisting 30,000 households in the Delta, Dry Zone and
Shan State through the micro-credit schemes. The pilot
project aimed at making credit facilities accessible
to the poor, stimulating employment opportunities
through micro-small enterprises promotion,
strengthening local capacity to independently manage
micro-credit schemes with primary focus on landless
labourers, subsistence farmers and fishermen through a
high participation of women. In assessing the project
delivery, as of 30 June 1999, out of the total
allocation of US$ 3.9 million, US$ 2.9 million has
been utilized with US$ 0.9 million committed. It can
be said that the project has been successful only to a
certain extent, by assisting the poor families of
rural areas in the Delta, Dry Zone and Shan State
through the credit; and through the village-based
credit groups the habit of saving and repaying money
was formed. But there remains some issues that need to
be ironed out. These issues would be the disparity of
interest rates taken by the three international NGOs
and institutionalization of the project entities. In
the light of Myanmar's national goals for development,
and that is development with out too much confusion
and disparity, and also in the presence of the UNDP
mandate of the grassroots level achievement for the
HDI programme, the interest rates should be unified at
the rate normally prescribed in the country and really
conducive to the poor families in their daily lives.
Institutionalization or legality of the village-based
microfinance groups created by the project. To enable
the transfer of funds, or in other words, ownership by
the villagers once the project is completed,
arrangements and facilitations are needed to be made
for sustainability. It is most appropriate that we
consider these issues seriously and chart out concrete
work plans right now at this seminar. Five papers are
to be presented by the Resource Persons from India,
Bangladesh, the Philippines and Malaysia to share
experiences and to in-put inspirations for the ongoing
project for which US$ 4.5 million has been allotted to
carry out micro-credit funding and small business
development. Micro-credit funding will  be meaningful
and effective only with the small business development
". UNDP Resident Representative and Coordinator of UN
Agencies for Myanmar made a speech. The seminar was
attended by Minister for Cooperatives , officials of
Ministry of Agriculture and Irrigation, Ministry of
Finance and Revenue, Ministry of Cooperatives and
Ministry of National Planning and Economic Development
and personnel of UNDP and UN Projects Groups. The
seminar continues on 2nd November.
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Mg Myanmar
A Myanmar citizen who loves Myanmar

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