The 4th Annual Arab Policy Forum was held on 14-15 May 2012. Hosted by CGAP, GIZ and Sanabel, the forum was focused on the Arab Spring and its impact on financial inclusion. In the keynote address, Dr. Lobna Helal, Deputy Governor of the Central Bank of Egypt emphasized the importance of leadership, commitment and accountability of government. She encouraged formulating a framework that will empower a coordination body capable of pursuing financial inclusion with measurable targets. The panel discussion that ensued dealt with the Arab Spring and economic exclusion, the opportunities that this particular time of reform presented, and the potential of branchless banking.
What emerged clearly from the first day of the forum was that:
- The Arab world was in a state of political, economic and social reform
- Leadership was important as there was an expectation from the Arab people that livelihoods would change
- Data was missing to make informed policy decisions and to link grassroots need to policy and the real economy
- Islamic Finance is still important, although it makes up only one percent of microfinance
- Branchless banking is still relatively new compared to other regions, and there are concerns about security
The forum’s second day provided an opportunity for AFI to speak on the Maya Declaration, which reinforced the issues that had been highlighted in the keynote speech by Deputy Governor Dr. Helal on commitments and leadership. Attendees centered the discussion that followed around a roadmap for the region, with Pakistan giving a presentation on their journey to greater financial inclusion. Highlights of this discussion included:
- Countries are at different maturities with regard to financial inclusion
- Many countries see the greatest challenge as not having an appropriate legal and regulatory framework
- There is interest in understanding how branchless banking can improve financial inclusion
- Many believe that financial inclusion should be part of the central bank’s mandate
- Consumer protection is an important policy area for many present
- This cohort believes that knowledge exchange is the most important way to share amongst peers
The forum concluded with participants recognizing that the Arab Spring presents a window of opportunity for social, economic and political reform. As evidenced by discussion that took place during event, financial inclusion will be key to some of the most pressing concerns faced by the region.