REMARKS BY USAID MISSION DIRECTOR, JONATHAN ADDLETON
FOR MICRO FINANCE SUMMIT CONFERENCE

PHNOM  PENH , CAMBODIA – WEDNESDAY, JANUARY 11, 2006

Your excellencies, distinguished guests, ladies and gentlemen - I appreciate the opportunity to provide a few remarks at this important occasion. As the last speaker before lunch, let me also be brief!

USAID is proud to have been a leader as well as an innovator in micro finance, both in Cambodia and around the world.

Looking back over the past fifteen years, it is gratifying to note that USAID directly supported some of the first start-up micro finance programs in Cambodia , including those initiated by World Relief and Catholic Relief Services. This in turn led to more formal dialogue and participation in working groups aimed at shaping a policy environment that would expand micro finance in Cambodia . Other assistance included the purchase of loan tracking software for one of Cambodia 's true micro finance success stories, ACLEDA Bank.

More recently, USAID continued its support for micro finance through a loan guarantee program with Canadia Bank and, as our most recent initiative, a small business support program involving Cambodian partners as well as Development Associates and the Asia Foundation. Looking around the room today, it is reassuring to see that representatives from many of these USAID partner organizations are participating in this conference today.

My strong bias toward micro finance is strengthened by a series of "close encounters" with people for whom a micro finance loan has been a truly transformational experience. These range from a hair dresser in South Africa to an artisan in Jordan to a herder on the steppes of Mongolia . In each case, these individuals weren't looking for a handout or a one-time gift. Rather, they were looking for a helping hand that would put them on a path toward a sustainable economic future, one in which their personal initiative and hard work would be rewarded in ways that would also improve the livelihood of entire extended families.

In fact, that is one of the most attractive aspects of sustainable micro finance around the world-that it can first transform individuals and families, then local communities and ultimately entire societies. Indeed, this decentralized aspect of micro finance is what makes it so appealing. Micro finance allows people to lift themselves out of poverty rather than having watch passively as others attempt to do it for them. It appreciates the dignity of individuals and supports the integrity of families. And, at its very core, it reflects a firm understanding that ordinary people matter; that a variety of individual voices should be heard; and that the economic choices that they make can and should have a positive impact across the country as a whole.

Parenthetically, this aspect of microfinance also strongly underscores the important linkages between a market economy and democracy, with the success of one very much dependent on the success of the other. As other international organizations and embassies have noted in recent days, arrests and other steps taken to silence other voices are a growing concern. Micro finance needs macro economic stability – but it also needs space for ordinary people to work independently to better their economic future without having to resort to corruption; to discuss issues of the day without fear; and to make economic and other decisions in an environment in which information flows freely and many voices are both welcome and heard.

In closing, let me express my thanks and appreciation to everyone involved in Cambodia's micro finance sector for their role in expanding economic opportunity for tens and even hundreds of thousands of Cambodians.  Shared experiences and "lessons learned" can make a powerful contribution toward further expanding those opportunities in the months and years ahead.  Again, I wish everyone the best in their continued efforts to apply those lessons learned in ways that make a difference in Cambodia.

Thanks

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