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de v elopment
A declaration for
financial inclusion
How developing and emerging economies are leading
the globe toward smart financial inclusion policy
de v elopment
The surge of interest in financial
inclusion is also a result of recent
technological advances, including
an explosive escalation in mobile
phone subscriptions in developing
countries which has lowered the cost
of providing reliable financial services
to the unbanked. Furthermore, there is
growing awareness that new forms of
partnership are required to accelerate
financial inclusion progress through
novel forms of cooperation between
different stakeholders, including the
private sector.
The Maya Declaration provides
conclusive evidence that the developing
world is committed to the issue, and its
inception could represent the tipping
point of financial inclusion.
At AFI’s 2011 Global Policy Forum (GPF)
held in Riviera Maya, Mexico, leading
policymakers representing more
than 80 developing and emerging
countries collectively authored a vision
for financial inclusion and launched
the Maya Declaration. That moment
represented the arrival of the first global
and measurable set of commitments to
unlock the economic and social potential
of the world’s 2.5 billion unbanked
through greater financial inclusion.
Alfred Hannig,
Executive Director,
Alliance for Financial Inclusion
There is mounting international recognition that financial
inclusion is an important part of the solution to current global
economic problems, a fact reflected in the June 2012 G20 Summit
Communiqué and highlighted at the April 2012 4th Annual G-24/
Alliance for Financial Inclusion (AFI) Policymakers’ Roundtable
when Mr. Koodathumuriyil Verghese Eapen, Senior Advisor to the
Executive Director for India and then G-24 Chair, outlined the critical
role financial inclusion plays in the ‘reduction of poverty and in
economic development’. Specifically, greater financial inclusion has
the potential to stimulate new businesses and new jobs on a massive
scale. More than 90% of the worlds unbanked are located in nations
with developing and emerging economies, nations which are widely
recognised as new engines of global economic growth.
Since the Maya Declaration’s
emergence, 38 policy making
institutions, from every region in the
world, have made commitments. More
institutions from the AFI Network are
expected to follow and the Network now
accounts for an estimated 90% of the
world’s unbanked population.
Although international declarations
are commonplace and rarely translate
words into tangible action, the Maya
Declaration has three key characteristics
that indicate it will have a significant,
demonstrable impact:
Measurable commitments in four key
policy areas: Member institutions are
expected to make measurable, publicly
accountable commitments that have
been proven to increase financial
inclusion. These four areas, which are
consistent with the G20 Principles for
Innovative Financial Inclusion, include
mobile financial services policies and
regulations, proportionate regulatory
frameworks, consumer protection and
education, and data collection.
The right to self-determination: The
Maya Declaration recognises that each
country case is unique, and externally-
imposed, top-down targets and
solutions rarely work. Consequently,
institutions have the freedom to
determine their own bottom-up targets
based on individual circumstances and
policy priorities.
A collaborative approach based
on new forms of cooperation: The
Maya Declaration capitalises on the
collective strength of the AFI Network
in two main ways. First, it supports
the exchange of financial inclusion
insights through AFI’s peer-to-peer
knowledge sharing platform. Second,
it fosters and promotes new forms of
cooperation, including partnerships
with the private sector.
To support member institutions in the
upcoming months and years, AFI will
offer services ranging from peer review
and peer advice to providing advocacy
support toward the full achievement of
institutional commitments made under
the Maya Declaration. AFI will also
regularly monitor and publicly report
on the progress member institutions
experience pertaining to their
commitments. In fact, the 2012 GPF held
in Cape Town, South Africa, featured the
release of the Maya Declaration Progress
Report: ‘Commitments You Can Bank
On’, which showcased the remarkable
progress achieved by pioneering
institutional commitments announced
at the previous forum. AFI member
institutions demonstrated how self-
determined commitments, monitored
through a network of peers, are proving
to be catalysts in driving policy and
regulatory changes that have an impact
on the ground.
For financial inclusion to reach its full
potential, it has to be truly inclusive,
bringing together the complementary
expertise of a broad cross-section of
partners. The Maya Declaration might
provide the tipping point for financial
inclusion but it will require a coordinated
global effort to truly make a positive and
sustainable impact on the word’s poor.
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