Princess Máxima Elucidates on Financial Development at Conference

Princess Máxima of the Netherlands was invited to speak at the High Level Financial Inclusion Congress in London on June 19th. The event was organized by the British Ministry of Finance and the Department for International Development (DFID)

After thanking her hosts for the invite, the princess emphasized that microcredit was not the sole solution for financial development in poverty and low income predicaments and said, “Ladies and gentlemen, by now, research has convincingly shown that a sound financial sector is an essential part of the development process. Financial development and improving access to finance not only accelerates economic growth, but also reduces poverty and income inequality.”

“Access to a wide variety of financial services and products, such as loans, savings, insurance products and remittances can be a powerful tool to generate income, build capital and protect people against risk. However, as we all know, world financial systems are still not inclusive today. Well over two billion people do not have access to basic financial services and we are here to change that.”

“Having said that, I must stress that microfinance is not THE solution to the poverty problem. Nor is a small loan always the best way to help a person without resources. Grants and other types of direct support are sometimes better solutions. This is important to remember in the determination of development policies.”

“The Advisors to the Year of Microcredit, recommended in 2005 that the UN should appoint a group of experts to see the work they had begun through to completion. As a result, the UN Advisors Group on Inclusive Financial Sectors was established last June. This advisory group is formed by a broad international group of experts from private and public sector, practitioners, NGO’s, donors and academia.”

“The key role of the Advisors Group is to advise and guide the UN and its member states on building financial sectors that enable wide access to a diverse range of financial services. Our Advisors group aims also to support, not replace existing initiatives. I am therefore inviting all individuals, organisations and governments to work with us and share their concerns, experiences and solutions. In this field, as in many others, combining and coordinating efforts is key to increase effectivity…and that is probably one of our main tasks.”

Princess Máxima's entire speech at the High Level Financial Inclusion Congress in London can be read here.

Photo: DFID