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Resolution 1813 (2011)
Promoting microcredit for a more social economy
1. Microcredit is a critical anti-poverty
tool and a wise investment in human capital. It is often used as
a means of encouraging the growth of self-employment and the formation
and development of microenterprises. In many cases this is linked
to measures to promote the transition from unemployment to self-employment. Microcredit
can therefore play an important role in the promotion of social
inclusion. It is of particular importance for rural areas and can
play an important role in integrating ethnic minorities and immigrants,
both economically and socially.
2. Microcredit operations need to be seen in a broader legal
and support framework because financial, employment and social welfare
systems are interrelated. Microcredit should be increasingly viewed
as a means of advancing socio-economic progress in society (notably,
in terms of employment and socio-economic cohesion). Although microcredit
is not a new concept, it is important to note that it is diversely
dealt with in the member states of the Council of Europe, depending
on the policy framework and the legislation in place. Although member
states have already taken measures to promote microcredit, these
measures appear to be quite specific and are sometimes only locally
applicable. Yet, well-defined modalities and structures are the
key to the good functioning and utility of microcredit bodies to
society.
3. The Parliamentary Assembly therefore invites the member states
to adapt national institutional, legal and commercial frameworks
in order to promote a more favourable environment for the development
of microcredit, notably by:
3.1. devising
employment policies which increasingly ensure equal treatment for
the self-employed and for wage-earners;
3.2. furthering self-employment and microenterprises by a programme
of publicity and awareness raising, aimed at the general public,
carried out in schools, universities and employment agencies;
3.3. introducing measures to lower legal, tax and administrative
barriers, such as exemption from social insurance charges for start-ups,
simplified registration procedures for new microenterprises and access
to more numerous and less expensive outlets.
4. The Assembly also encourages member states to create a hospitable
economic environment enabling the development of microfinance institutions
and covering all segments of the population by:
4.1. reducing operating costs by
introducing favourable tax regimes, whether through tax exemption for
microfinance institutions or reductions in taxes for individuals
or enterprises that invest in these activities;
4.2. improving the institutional framework for self-employment
and microenterprises;
4.3. increasing the chances of success of new microenterprises
through training, mentoring and business development services;
4.4. providing technical assistance and general support for
the consolidation and development of non-bank microfinance institutions,
including at regional level;
4.5. providing additional financial capital for microcredit
institutions.
5. With regard to the Council of Europe Development Bank (CEB)
the Assembly reiterates its call for a more extensive use of the
co-operation agreements concluded by the bank with the European
Union, international financial institutions and the United Nations
specialised agencies with a view to sharing costs, practices, competences,
experience and risks. In particular, efforts of the bank should
focus on co-financing activities in the neediest target countries
and specifically on microfinance so as to further entrepreneurship
of women, the integration of immigrant communities, socio-economic
cohesion, energy efficiency and national development priorities.
This would increase the bank’s visibility, impact on development
and risk-taking capacity.
6. The Assembly welcomes the involvement of the Congress of Local
and Regional Authorities of the Council of Europe in the moves to
promote microcredit. The Congress’s position on the possibilities
which microfinance can offer at local and regional level were particularly
stressed in its Resolution 263 (2008) and its Recommendation 244
(2008) on responsible consumption and solidarity-based finance,
as well as in its Resolution 294 (2009) on overindebtedness of households:
the responsibility of regions. The Assembly supports the Congress’s
call on local and regional authorities to promote solidarity towards
the more vulnerable – including towards persons excluded from the
conventional banking circuits – inter
alia by developing micro-loans, and microcredit generally,
through partnerships with professionals.
7. Finally, the Assembly welcomes the long-standing and highly
relevant activities of the European Bank for Reconstruction and
Development (EBRD) in the field of small business finance (the EBRD
is the single largest investor in that field in eastern Europe and
central Asia) and encourages it to:
7.1. continue to provide private micro and small enterprises
with sustainable access to financial services, via a range of financial
institutions and greenfield investment;
7.2. provide assistance to partner institutions so as to build
technical capacity;
7.3. engage in policy dialogue to improve the enabling environment
in its countries of operation.