Plank Testifies for WOCCU, CUNA on Microenterprise Law

CUNA News Now

CUNA and WOCCU witness Gary Plank, president/CEO of the Arizona Credit Union League, prepares to testify yesterday before the House Subcommittee on Africa, Global Human Rights and International Operations. Plank also serves as chairman of WOCCU. (Photo provided by CUNA)

Washington, DC — Representing World Council of Credit Unions (WOCCU) and the Credit Union National Association (CUNA), Gary Plank told a House subcommittee Tuesday that a 2004 microenterprise law provided a good basis for funding accountability, but more must be done to assure the law is implemented as intended.

Plank said that opportunities for small, specialized non-governmental organizations to compete for development funding are decreasing. He said that Congress must ensure the "efficiency and effectiveness" of microenterprise programs by enforcing the central funding of the Microenterprise Development Office as set forth by the Mincroenterprise Results and Accountability Act of 2004.

The WOCCU chairman was testifying before a House international relations subcommittee hearing on whether programs set up under the 2004 Act have been effective in reducing poverty through small business loans in developing countries. The Act was meant to ensure, in part, that U.S. funds are targeted directly to organizations best able to help the poorest members of a poor community.

Talking about microfinance before yesterday's hearing, from left: Cori Evans, WOCCU; Molly Schar, WOCCU, Katie Herberger, CUNA lobbyist; John McKechnie, CUNA senior vice president of governmental affairs; Dan Mica, CUNA president/CEO; and witness Gary Plank, WOCCU chairman and president/CEO of the Arizona Credit Union League. (Photo provided by CUNA)

Plank, who is also president and CEO of the Arizona Credit Union League, said in his statement that WOCCU and CUNA recommend that Congress:

• Provide adequate funding for USAID technical and acquisition personnel so that large umbrella contracts are not necessary for administrative ease;

• Continue to encourage USAID to use procurement instruments for which specialized not-for-profit practitioners can compete; and

• Emphasize the value of direct service providers on the ground implementing long-term sustainable development projects rather than more limited grants under umbrella contracts.

Plank told the panel that although WOCCU's projects range from savings to remittances and insurance, microenterprise lending is always a key component to helping individuals and communities achieve financial security and independence.

To view Plank's testimony in full, click here.

El Consejo Mundial de Cooperativas de Ahorro y Crédito es la asociación gremial y agencia de desarrollo para el sistema internacional de cooperativas de ahorro y crédito. El Consejo Mundial promueve el crecimiento sustentable de las cooperativas de ahorro y crédito y otras cooperativas financieras en todo el mundo a fin de facultar a las personas para que mejoren su calidad de vida a través del acceso a servicios financieros asequibles y de alta calidad. El Consejo Mundial realiza esfuerzos de defensa activa en representación del sistema global de las cooperativas de ahorro y crédito ante organizaciones internacionales y trabaja con gobiernos nacionales para mejorar la legislación y la regulación. Sus programas de asistencia técnica introducen nuevas herramientas y tecnologías para fortalecer el desempeño financiero de las cooperativas de ahorro y crédito y profundizar su alcance comunitario.

El Consejo Mundial ha implementado 290 programas de asistencia técnica en 71 países. A nivel mundial, 51,000 cooperativas de ahorro y crédito en 100 países atienden a 196 millones de personas. Obtenga más información sobre el impacto global del Consejo Mundial en www.woccu.org.