At a meeting in the Peace Palace hosted by Radio Netherlands Worldwide, development minister Bert Koenders talked about the success of microfinancing in combating poverty, but warned that vigilance was called for.

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He went on to say that microfinancing has been very successful to date, and has led to self-reliance and employment. Its availability has been increasing, but its very success threatens to overshadow the objective of sustainable economic development. The minister accordingly called for vigilance to ensure that financing of this kind continues to reach the poorest of the poor in remote areas, for they are most in need of expanded and enhanced financial services.

The minister applauded Radio Netherlands Worldwide – which reaches almost all parts of the globe – for highlighting this subject across the world.

Last week, Mr Koenders submitted a memorandum on growth and equity to the House of Representatives, stressing the importance he attached to the financial sector's contribution to development, especially to reaching those previously deprived of financial services, and to fostering entrepreneurship and employment.

The Netherlands supports the MASSIF fund, managed by the Netherlands development finance company. MASSIF provides innovative financing products that are accessible to the entire population in over ninety countries. The Netherlands also supports the IFC partnership programme of the World Bank, which seeks to counteract the effects of the crisis on developing countries by maintaining trade flows to and from such countries.

The Netherlands is also involved in setting up microfinancing for small businesses in Uruzgan, Afghanistan, and has started a microcredit programme for rice farmers in Suriname. The Schokland Oikocredit Programme is investing in sustainable employment in seven medium-sized and small businesses.

Responding to the question ‘What’s next?’, Mr Koenders indicated three crucial goals for good microfinance: improving quality, expanding financial services and increasing access to such services in poor, remote areas.