1. Resolving the Global Financial Crisis Committee 2

2. Multilateralism- cooperation between nations: the principle or belief that several nations should be cooperatively involved in the process of achieving a goal, especially nuclear disarmament Multilateralism- cooperation between nations: the principle or belief that several nations should be cooperatively involved in the process of achieving a goal, especially nuclear disarmament

3. G-20 Summit Washington 11/15/08 The G-20 Declaration of the Summit on Financial Markets and the World Economy on 15 November 2008 outlined a roadmap for future action to stabilize and reform financial markets, to preserve an open global economy, to promote trade, to provide credit and liquidity and to restart economic growth and overcome recession The G-20 Declaration of the Summit on Financial Markets and the World Economy on 15 November 2008 outlined a roadmap for future action to stabilize and reform financial markets, to preserve an open global economy, to promote trade, to provide credit and liquidity and to restart economic growth and overcome recession Major focus was on strengthening transparency and accountability curbing speculation in currency, financial and commodity markets; enhancing sound regulation nationally and internationally; promoting integrity in financial markets; and reinforcing international cooperation Major focus was on strengthening transparency and accountability curbing speculation in currency, financial and commodity markets; enhancing sound regulation nationally and internationally; promoting integrity in financial markets; and reinforcing international cooperation But the summit also emphasized in the concluding section on a “commitment to an open global economy” - though almost as an afterthought and with rather weak and little compelling language or conviction - on: But the summit also emphasized in the concluding section on a “commitment to an open global economy” - though almost as an afterthought and with rather weak and little compelling language or conviction - on:

4. G-20 Summit cont. A commitment to free market principles which are essential to economic growth and prosperity and have lifted millions out of poverty; A commitment to free market principles which are essential to economic growth and prosperity and have lifted millions out of poverty; The importance of rejecting protectionism and not turning inward in times of financial uncertainty; The importance of rejecting protectionism and not turning inward in times of financial uncertainty; The impact of the crisis on developing countries, particularly the most vulnerable The impact of the crisis on developing countries, particularly the most vulnerable The importance of the MDGs, the development assistance commitments the participants have made The importance of the MDGs, the development assistance commitments the participants have made Urge both developed and emerging countries to undertake commitments consistent with their capacities and roles in the global economy Urge both developed and emerging countries to undertake commitments consistent with their capacities and roles in the global economy Reaffirm the development principles agreed at the 2002 Monterrey Conference on Financing for Development, which emphasized country ownership and mobilizing all sources of financing for development. Reaffirm the development principles agreed at the 2002 Monterrey Conference on Financing for Development, which emphasized country ownership and mobilizing all sources of financing for development.

5. World Bank calls for Aid boost The World Bank President called on donors to boost financial aid to developing nations which find themselves at the mercy of a crisis that “is not of their making” The World Bank President called on donors to boost financial aid to developing nations which find themselves at the mercy of a crisis that “is not of their making” Empowering developing and emerging countries and economies is imperative Empowering developing and emerging countries and economies is imperative Helping nations pursue economic development and long-term prosperity should be the goal of development finance. Helping nations pursue economic development and long-term prosperity should be the goal of development finance.

6. The call for “vulnerability funds” WB President Zoellick proposed in International Herald Tribune of 24 Jan. 2009 the creation of vulnerability funds, to be fed by developed countries with an amount of 0.7% of their respective stimulus packages to assist developing countries that can’t afford bailouts and deficits WB President Zoellick proposed in International Herald Tribune of 24 Jan. 2009 the creation of vulnerability funds, to be fed by developed countries with an amount of 0.7% of their respective stimulus packages to assist developing countries that can’t afford bailouts and deficits The funds should be taken from the dedicated bailout/stimulus packages The funds should be taken from the dedicated bailout/stimulus packages This would translate for US to an immediate contribution of US$ 6 billion This would translate for US to an immediate contribution of US$ 6 billion WB + Japan launched program to recapitalize banks in developing countries WB + Japan launched program to recapitalize banks in developing countries

7. Focus of vulnerability funds Creation of safety net programs Creation of safety net programs Food-for-work programs Food-for-work programs Seed and fertilizer projects Seed and fertilizer projects Maternal and child nutrition projects Maternal and child nutrition projects School meal programs School meal programs Cash for work programs Cash for work programs Road work and drainage Road work and drainage INVESTMENTS IN HEALTH, EDUCATION AND NUTRITION MUST BE MORE THAN TEMPORARY POVERTY RELIEF: THEY ARE INVESTMENTS IN HUMAN CAPITAL INVESTMENTS IN HEALTH, EDUCATION AND NUTRITION MUST BE MORE THAN TEMPORARY POVERTY RELIEF: THEY ARE INVESTMENTS IN HUMAN CAPITAL Investments in infrastructure, including financing for low-carbon technology projects Investments in infrastructure, including financing for low-carbon technology projects Support small- and medium-sized enterprises and microcredit institutions Support small- and medium-sized enterprises and microcredit institutions

8. Microcredit Provision of small loans (generally USD 50 – USD 550 value in local currency) Provision of small loans (generally USD 50 – USD 550 value in local currency) Repayment is made over a set period, usually less than one year Repayment is made over a set period, usually less than one year Interest is charged (the rate varies with each country) Interest is charged (the rate varies with each country) No collateral is required, however most group guarantee No collateral is required, however most group guarantee Most recipients are women (as they are considered food providers of family) Most recipients are women (as they are considered food providers of family) People below the poverty line (daily income less than USD $2) People below the poverty line (daily income less than USD $2) Generally recipients own no property Generally recipients own no property Often seasonal or no regular income source Often seasonal or no regular income source Displaced persons (e.g. from flood relocation, rural to urban migration due to civil conflict Displaced persons (e.g. from flood relocation, rural to urban migration due to civil conflict

9. Why Microcredit? Advancement of entrepreneurship and self-employment, thus creating cash flow Advancement of entrepreneurship and self-employment, thus creating cash flow Supports individuals and families to climb out of poverty cycle. Supports individuals and families to climb out of poverty cycle. Enhancement of self-esteem and supports creativity Enhancement of self-esteem and supports creativity Encourages participation and initiation in solutions in local community Encourages participation and initiation in solutions in local community Increase of education options for both adults and children Increase of education options for both adults and children

10. Basic Micro Credit Model MC Client takes loan of USD 80 to buy two goats. Fortnightly payments (incl. interest) of USD 3.50. Completed repayment within one year. Goats give birth during year, yearly income from sale of USD 80 plus goats as asset. Thus now has capital and future income production. Plus self-confidence! MC Client takes loan of USD 80 to buy two goats. Fortnightly payments (incl. interest) of USD 3.50. Completed repayment within one year. Goats give birth during year, yearly income from sale of USD 80 plus goats as asset. Thus now has capital and future income production. Plus self-confidence! MC Client takes loan of USD 150 to set up small roadside shop. Fortnightly payments (incl. interest) of USD 6.50. Completed repayment within one year. Shop produces weekly income of USD 16.50. At year end net profit approximately USD 400, plus shop & stock on hand. Thus now has capital and income production, and, increased self-esteem MC Client takes loan of USD 150 to set up small roadside shop. Fortnightly payments (incl. interest) of USD 6.50. Completed repayment within one year. Shop produces weekly income of USD 16.50. At year end net profit approximately USD 400, plus shop & stock on hand. Thus now has capital and income production, and, increased self-esteem

11. Resources http://portal.unesco.org/en/files/44425/1233 3380901BSP-Global_Financial_Crisis_- _90_minutes_270109.ppt/BSP- Global%2BFinancial%2BCrisis%2B- %2B90%2Bminutes%2B270109.ppt http://portal.unesco.org/en/files/44425/1233 3380901BSP-Global_Financial_Crisis_- _90_minutes_270109.ppt/BSP- Global%2BFinancial%2BCrisis%2B- %2B90%2Bminutes%2B270109.ppt http://portal.unesco.org/en/files/44425/1233 3380901BSP-Global_Financial_Crisis_- _90_minutes_270109.ppt/BSP- Global%2BFinancial%2BCrisis%2B- %2B90%2Bminutes%2B270109.ppt http://portal.unesco.org/en/files/44425/1233 3380901BSP-Global_Financial_Crisis_- _90_minutes_270109.ppt/BSP- Global%2BFinancial%2BCrisis%2B- %2B90%2Bminutes%2B270109.ppt http://www.omnuscco.com/Micro-Credit.ppt http://www.omnuscco.com/Micro-Credit.ppt http://www.omnuscco.com/Micro-Credit.ppt www.acronymfinder.com www.acronymfinder.com www.acronymfinder.com