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G20 told to provide financial services to the poor
President Susilo Bambang Yu-dhoyono says that G20 member nations must use their upcoming summit to focus on giving the people of developing countries access to financial services
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P
resident Susilo Bambang Yu-dhoyono says that G20 member nations must use their upcoming summit to focus on giving the people of developing countries access to financial services.
Speaking at the keynote address at the opening of the Global Policy Forum of the Alliance of Financial Inclusion (AFI) here on Monday, Yudhoyono said that financial inclusion should be part of the “development issues” agenda that the G20 countries has agreed to address at its November summit in South Korea.
“Financial inclusion is essential to our efforts to fight poverty. It is a critical instrument to achieve the MDGs [Millennium Development Goals]. Indonesia is ready to bring this issue to the attention of the G20 leaders at the summit this November,” he said.
Policymakers from 42 developing countries are taking part in the three-day forum to increase access to financial services by the people of developing countries through innovative policies and approaches.
“Financial inclusion is essential to our efforts to fight poverty. It is a critical instrument for achieving the MDGs. Indonesia is ready to bring this issue to the attention of G20 leaders in the summit this November,” he said.
Forum participants heard that an estimated 2.5 billion adults in developing countries do not have access to formal financial services, such as saving accounts, payments, insurance, credit and consumer and privacy protections.
AFI helps developing countries to create financial inclusion policies with the target of giving 50 million people now living under the poverty line basic financial services by 2012.
Yudhoyono said that poverty would be perpetuated if disadvantaged or low income people could not access financial services.
“Providing affordable financial services for people living with low incomes will unlock many financial opportunities that will improve their well being and close the economic and social gap. This will ultimately reduce poverty, inequality and contribute to a country’s economic growth.”
He also highlighted the importance of educating people on the benefits of accessing financial services, since not all people felt comfortable with modern banking services.
“Many still prefer to put their money under the pillow or in socks or piggy banks. Financial inclusion is not just opening a savings account and obtaining microcredits. It should also empower people to use access to financial services to widen the scope of their economic activities. Therefore, developing people’s financial literacy is as important as developing financial capability,” Yudhoyono said.
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