[Draft 2] - Repeal 'Microcredit and Microgrants'

[Simone Republic]

Motivation

This is fairly straight forward - GAR 94 was passed in an era where smartphones were not yet prevalent. These days, mobile banking and mobile banking loan apps are everywhere. And some of these developments are more prevalent in less developed countries such as China (Wechat Pay or Alipay) or Africa (M-PESA) than the more saturated markets such as the US, although the US obviously has its own apps such as Square.

GA94:
viewtopic.php?p=2439109#p2439109

When you have thousands of micro lenders (if not more), having a heavy-handed Microcredit Foundation and a WA bureaucracy raising money for microgrants seem utterly unnecessary. The repeal-replace exercise is targeted towards abolishing the WA bureaucracy in favor of a locally based approach.

Replacement: (Access to Banking and Lending)
viewtopic.php?ns=1&f=9&t=545790

Draft 2

The World Assembly (WA),

Noting the WA’s long-standing sincerity in helping the disadvantaged;

Concerned that GAR 94, Microcredit and Microgrants, imposes a “one-size fits all” approach to microcredit across the multiverse, and has outlived its usefulness in light of the establishment of organizations to support development finance, better access to financial services, and various resolutions to improve the welfare of WA inhabitants;

In particular, concerned by the following potential issues with said resolution:

1. The founding of the World Microcredit Foundation (WMF) as a “global resource for microcredit” but not as an “originator of any loans” leaves it enforcing universal set of lending standards and practices (paragraph 11, bullet 2) and to enforce such standards to safeguard WA funds, which fail to to account for local differences in lending practices;
   
2. The founding of a donor organization, the Microgrant Institute (MGI), which relies on monetary donations to fund microgrants for the purpose of “sustaining livelihood and encouraging entrepreneurship”, creating a WA bureaucracy across the multiverse that distributes donations to inhabitants and duplicating its functions with local charities and foundations, as well as with other WA organs;
   
3. Believing that much of the recommendations of the resolution regarding the management of financial services and entrepreneurship have been better articulated by GAR 474 and several other resolutions concerning personal finance;

Encouraged that the proliferation of payment, lending, and financial services apps, web sites and other technologies since the passing of this resolution have created vibrant local industries in micro-lending, and superseding much of the functions of the WMF and the MGI;

Looking forward to a replacement resolution that tailors access to financial services more suited to the local circumstances of each WA state, including financial systems and technical capabilities;

Hereby repeals GAR 94, 'Microcredit and Microgrants'.

[Simone Republic]

*Bump* on the World Assembly Official Merchandise bumper.

[Tigrisia]

Motivation
This is fairly straight forward - GAR 94 was passed in an era where smartphones were not yet prevalent.

OOC: Only 67% of all people were online in 2023 (https://www.itu.int/en/ITU-D/Statistics ... fault.aspx). That means that 2.6 billion people would be cut off.

IC: Please be aware that many nations do not have access to the internet in many states, some nations having abandoned the internet all together.

Also, please be aware that microfinance is a type of finance product and can also be managed digitally. See for example here: https://en.wikipedia.org/wiki/Zidisha.

Lastly, the risk of these micro finance products is often too high for companies to take, so states jump in to provide securities. We believe that without these securities, many small to medium scale enterprises wouldn't exist. Hence, we are against the repeal of "Microcredits and Microgrants".

[Simone Republic]

Motivation
This is fairly straight forward - GAR 94 was passed in an era where smartphones were not yet prevalent.

OOC: Only 67% of all people were online in 2023 (https://www.itu.int/en/ITU-D/Statistics ... fault.aspx). That means that 2.6 billion people would be cut off.

IC: Please be aware that many nations do not have access to the internet in many states, some nations having abandoned the internet all together.

Also, please be aware that microfinance is a type of finance product and can also be managed digitally. See for example here: https://en.wikipedia.org/wiki/Zidisha.

Lastly, the risk of these micro finance products is often too high for companies to take, so states jump in to provide securities. We believe that without these securities, many small to medium scale enterprises wouldn't exist. Hence, we are against the repeal of "Microcredits and Microgrants".

Let me think about that point. The supposed "replacement" is not contingent on repealing this, so I am open to persuasion that it's still necessary. Having looked at the payment systems adopted in India, South Africa and China I feel it's probably no longer needed, but I may be pre-mature here.

[Tigrisia]

Let me think about that point. The supposed "replacement" is not contingent on repealing this, so I am open to persuasion that it's still necessary. Having looked at the payment systems adopted in India, South Africa and China I feel it's probably no longer needed, but I may be pre-mature here.

It's not only about payment, it's also about credits that are too risky for banks. I mean, even the Federal Government of Germany has a Microcredit system (for people in Germany): https://www.bmas.de/DE/Arbeit/Arbeitsfo ... redit.html

[Simone Republic]

Draft 1

Draft 1

The World Assembly (WA),
Noting the WA’s long-standing sincerity in helping the disadvantaged;
Concerned that GAR 94, Microcredit and Microgrants, has outlived its usefulness in light of the establishment of similar organizations to support development finance, such as the WA Development Foundation (GAR 226), better access to financial services (GARs 474, 625), and numerous resolutions to encourage or provide direct support to those in need;
In particular, concerned by the following flaws with the operative clauses of this resolution:

1. The founding of the World Microcredit Foundation (WMF) as a “global resource for microcredit” but not as an “originator of any loans” leave it as a global regulator in charge of forming one universal set of lending standards and practices (paragraph 11, bullet 2), which fail to to account for local differences in lending practices; 
2. The founding of a donor organization, the Microgrant Institute, which relies on monetary donations to fund microgrants for the purpose of “sustaining livelihood and encouraging entrepreneurship”, again in the view of some delegations as creating a global bureaucracy across the multiverse that distributes donations to inhabitants and duplicating its functions with numerous charities and foundations across the multi-verse as well as with other WA organs such as the WA Development Foundation;
3. Believing that much of the recommendations of the resolution regarding the management of financial services and entrepreneurship have been better articulated by GAR 474 and several other resolutions concerning personal finance;

Encouraged that, across much of the multi-verse, the proliferation of thousands of payment, lending, banking and financial services smart-phone apps, web sites and other newer technologies since the passing of this resolution have created vibrant local industries in micro-lending, and superseding much of the functions of the two aforesaid organizations;
Looking forward to a replacement resolution that tailors access to financial services more suited to the latest technological capabilities of WA states across the multi-verse; 
Hereby repeals GAR 94, 'Microcredit and Microgrants'.

Draft 2 is basically minor wording changes. There will be a corresponding revision to the replacement resolution to work in microgrants.

There's also a quasi-replacement in microcredit for comments:
viewtopic.php?f=9&t=545790