G8 Sea Island Action Plan: Applying the Power of Entrepreneurship to the Eradication of Poverty

Sectors : Financial Institutions, markets, services and microfinance, Water and Sanitation
Organisation : G8
Date made: 
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Commitments in: Private Sector development and financial services for the poor - Financial Institutions, markets, services and microfinance

“The G8 will work with developing countries to develop pilot projects and support actions to:...

...20. Promote credit bureaus that enable responsible borrowers to improve access to credit and other financial services.”


“Providing Housing and Clean Water by Supporting the Development of Local Financial Markets...

...This year, the G8 will concentrate on two aspects of financial market development by carrying out pilot projects to meet the needs of people for housing and clean water. Specifically, we will:

21. Work with the MDBs and other organizations to facilitate the establishment of the fundamental components of mortgage markets, including property rights, title transfer, credit risk management, legal and regulatory frameworks, funding sources, and the operational capacity of mortgage lenders.

22. Seek to provide opportunities for recipients of remittance inflows to utilize that income efficiently in domestic financial markets, including for building and improving their homes.

23. Help develop sub-sovereign bond markets to provide water and sanitation by building on relevant commitments in the G8 Evian water action plan, including technical assistance to design instruments and the legal and institutional frameworks necessary for market acceptance. We welcome the ongoing work of the World Bank on this issue.

24. Provide assistance for selected viable sub-sovereign bond issues for water projects by utilizing and expanding existing programs.

25. Promote the development of pooled funds, backed by homeowner associations, to pay for local water projects.”


“Expanding Access to Microfinance for Entrepreneurs
...In anticipation of the UN-designated international year of micro-credit in 2005, G8 countries will work with the World Bank-based Consultative Group to Assist the Poor (CGAP) to launch a global market-based microfinance initiative. To assess the status and effectiveness of current microfinance programs, G8 countries will work with CGAP to promote best practices in microfinance for developing countries. We endorse the Key Principles of Microfinance, compiled by CGAP and its members and will work with CGAP on ways to implement these key ideas with microfinance donors and practitioners. G8 countries will also launch pilot projects to increase the number, scale and effectiveness of microfinance institutions in selected countries. These pilots will:

26. Focus on institutional best practices for expanding and mainstreaming sustainable microfinance.

27. Develop a microfinance institution code of conduct based on CGAPs efforts to identify key principles for microfinance lending.

28. Reduce barriers for growing microfinance institutions to gain access to domestic and international capital markets.

29. Encourage, where needed, the establishment and expansion of self-sustaining microfinance investment funds.

30. Assist developing countries to improve their legal and institutional frameworks for microfinance so it can become sustainable and more widely available.

31. Enable growing microenterprises to continue to access capital by reducing barriers for bank lending, promoting innovative bank-microfinance institutions (MFIs) linkages, and removing disincentives to business formalization."