Summit Themes

Microcredit is Part of a Larger Movement
Microcredit is just one part of a larger effort to end poverty. To be successful, the 

Small informal gatherings helped delegates extend their working contacts

overall movement to end poverty will require the implementation of a broad range of strategies.

The Goal of the Summit
The goal of the Microcredit Summit is to reach 100 million of the world's poorest families, especially the women of those families, with credit for self-employment and other financial and business services by the year 2005.

Definition of the Poorest
The Summit Declaration and Plan of Action defines the "poorest" families in developing countries as those among the bottom 50% of those living below the poverty line. Within industrialized countries the Summit focuses on all those living below the poverty line.

Institutional Sustainability
Within developing countries the Summit Declaration and Plan of Action is committed to building sustainable institutions. In industrialized countries, the economic context is radically different; however, programs in industrialized countries are committed to exploring ways of becoming self-sustaining so that, to the greatest extent possible, their operating costs will be covered through direct revenue from program services.

Impact on the Lives of Clients and Their Families
The Microcredit Summit is committed to programs having a measurable, positive impact on the lives of the very poor.

A woman exhibits her authentic African clothes and wares

Current Reach
The Summit Declaration and Plan of Action estimates that of the 100 million very poor families, eight million very poor clients are being reached currently. Of the remaining 92 million additional clients needed to reach the Summit's goal, it is estimated that 88 million will come from developing countries and four million from industrialized countries.

The Major Challenge
The single biggest challenge to expanding microcredit is the need to build local institutional capacity in communities around the world. The Summit Declaration and Plan of Action warns that the Summit's commitment to reaching 100 million of the world's poorest families can be derailed by an indiscriminate flow of resources to programs that are not ready for the next level of growth. If growth occurs too quickly, or if the goal of expansion is put ahead of sustainability, programs may have more clients than they can serve effectively.

Estimated Resources Required
The Summit Declaration and Plan of Action estimates that US$21.6 billion will be required over the next nine years. Approximately US$11.6 billion would come from grants and concessional or low-interest loans and the remaining $10 billion is estimated to come from funds borrowed at commercial rates and from the savings of borrowers and others in their communities.

Fulfillment of the Summit's Goal
The Summit Declaration and Plan of Action stresses that the basic building block of the Microcredit Summit Campaign is the Institutional Action Plan. Most 2001 Action Plans are due April 1, 2001.