Financial inclusion of
communities’ key for post-conflict reconstruction – UNDP

By Nizla Naizer

With the message that financial instruments are the key for reconstruction efforts in countries recovering from crises and conflicts such as Sri Lanka, the three-day UNDP Asia Pacific Conference of Financial Inclusion commenced at the Cinnamon Grand on Monday.
Bringing together over 40 experts from across the Asia-Pacific region to discuss financial inclusion strategies for the vulnerable populations in the Asian continent, the conference organized by the UNDP Regional Centre for Asia Pacific in Colombo in collaboration with the United Nations Capital Development Fund (UNCDF) aims at promoting the importance of ‘inclusive finance’ on a larger scale.
UNDP Regional Centre for Asia-Pacific in Colombo, Head Omar Noman explained that insurance and credit which is vital to protect the poor in countries affected by the global economic crisis, and that governments need to focus on inclusive finance.
“Most countries in the world have cushions or safety nets for their vulnerable population when crises occur,” he added, “In France and Germany as part of the developed world when you lose your job, you lose your dignity but your children still go to school, while some of the other developed countries like the US badly provide cushions for their people. In the developing world however, there’s only so much a Government can do to step in and provide these cushions till the crisis abates. So ‘inclusive development’ is the way forward to ensure that these communities can stand on their feet.”
Although financial inclusion programmes worldwide have been successful, many Asian communities still remain excluded, and since inclusive finance is an important tool for expanding choices for the vulnerable helping these sectors meet their basic financial needs, manage risks they face, save for the future and contribute to sustainable social and economic development, more needs to be done to ensure the access and availability of financial services.
UNDP Country Director Douglas Keh explained that capital and credit will be essential lubricants for Sri Lanka’s post-war recovery efforts, particularly at the village level. “Sri Lanka is at a vey important beginning with the end of the war and there are a lot of communities desperate for financial autonomy,” he informed, “However, the biggest challenge they face is information- information on financial products, what they need to do to be viable and the rules involved.”