Grameen Foundation USA Study Recommends Microfinance as a Powerful Tool to Accelerate Economic Recovery in Tsunami-Ravaged Nations

President Bill Clinton advocates microcredit as a relief effort for tsunami victims.

Washington, D.C. (PRWEB) July 3, 2005 -- A targeted investment in microfinance services could help more than 100,000 people in four tsunami-affected countries to build, rebuild or resume family-sustaining businesses such as fishing, farming and merchant shops, according to a study released by Grameen Foundation USA (GFUSA).

The groundbreaking study, Recovery from Tsunami Disaster: Poverty Reduction and Sustainable Development through Microfinance examines four specific nations -- Indonesia, Sri Lanka, India and Thailand -- and the potential impact of microfinance as a cost-effective economic solution in the tsunami-ravaged countries.

In a recent Op-ed for the New York Times, President Bill Clinton advocated microcredit as part of his recommended effort to provide economic relief to tsunami victims.

We applaud President Clintons call for microcredit as part of the rebuilding package for the tsunami-ravaged areas of Asia," said Alex Counts, GFUSA President. At this very moment, there are unfunded microcredit projects that can help realize his vision."

Following the tsunami, GFUSA, in partnership with the Grameen-Abdul Latif Jameel Initiative, appointed the team of experts to survey the region. This teams mission was to assess the condition of the poor, the condition of existing microfinance institutions in the region and identify opportunities and best practices for ensuring that microfinance reaches its full potential as a post-disaster recovery strategy. The reports findings will help structure a new era of microfinance programming in the region.

The tsunami devastated local economies and wiped out tiny businesses that had enabled many families to live above the poverty level before this natural disaster," said Mr. Counts. Our report concludes that microcredit -- small loans ranging from just $50 to $400 for entrepreneurial individuals -- could have a dramatic impact in restoring hope and economic promise for thousands of families in Indonesia, Sri Lanka, India and Thailand."

In addition to underwriting the study, the Grameen-Abdul Latif Jameel Initiative has committed another $1 million toward implementing the reports final recommendations. British-based Northern Rock Foundation has also pledged $184,000. GFUSA is encouraging other organizations to join its Post-Tsunami Recovery Initiative.

While major disaster relief agencies are pouring in large amounts of aid, microfinance allows greater targeting of funds to the poorest people who have the greatest challenge for recovery. This strategy also supports continued social and economic development for families, beyond survival.

About Grameen Foundation USA

Grameen Foundation USA (GFUSA) is a global non-profit organization that combines microfinance, new technologies, and innovative thinking to empower the world's poorest people to escape poverty. Founded in 1997, GFUSA has established a global network of 50 partners in 20 countries and has impacted an estimated 4.4 million lives in Asia, Africa, the Americas, and the Middle East. For more information visit www.gfusa.org.

About Grameen-Abdul Latif Jameel Initiative

Grameen-Abdul Latif Jameel Initiative is a partnership between Grameen Foundation USA and the Abdul Latif Jameel Company, a leading private company in Saudi Arabia.

# # #