This week, the Alliance for Financial Inclusion (AFI) will kick off its eighth annual Global Policy Forum (GPF) in Nadi, Fiji. The 2016 GPF will be the largest GPF ever, bringing together over 500 high-level financial sector policymakers, regulators and other stakeholders to explore the theme, “Building the Pillars of Sustainable Financial Inclusion.”  

Having participated in all but one GPF, I thought it would be a good time to reflect on why so many high-level financial sector policymakers and regulators from across developing and emerging countries gather at the GPF every year. What is so unique about the GPF? And how has AFI generated so much traction for the event since the first GPF was held in Nairobi, Kenya in September 2009?

What makes the GPF unique?

The GPF is a truly unique event for several reasons. First, it is the only global forum of financial sector regulators and policymakers from developing and emerging countries. The GPF is their event. They are in the driver’s seat, not some development partner or international donor agency, and it is the only time they come together with their peers to discuss financial inclusion issues on their own terms. They set the agenda and then move the agenda forward.

Second, the willingness of AFI members to share and listen to one another has created a culture of peer learning that is unique to the GPF. A recent GIZ report noted that AFI members possess a “unique sense of community” underpinned by the “principle of equality of peers.”

Finally, the GPF is unique because the majority of participants are advancing financial inclusion through innovative and smart policies in their own countries. Their views are informed by credible empirical evidence, not by dogma. Discussions are guided by pragmatism and a focus on policy. Diverse perspectives are aired and respected, as AFI members understand how critical local context is to achieving their financial inclusion goals.

In a nutshell, the GPF is unique not only because of what it offers, but how it offers it.

Why has the GPF gained so much traction?

Over the last eight years, AFI has given developing and emerging country financial sector policymakers and regulators a robust global platform to deliberate issues of importance to their countries. AFI has opened the door for these policymakers to contribute their views to global financial policies and programs and given them a degree of clout to shape the global financial inclusion agenda. It is doubtful, for example, that the global Standard-Setting Bodies in the financial sector would have given so much emphasis to developing country perspectives on financial inclusion without AFI.

It is reasonable to say that AFI has made a major contribution to the increased level of financial inclusion across member countries over the last eight years. AFI began at a time when over 2.5 billion adults globally were financially excluded. Asia and Sub-Saharan Africa accounted for the lion’s share of this number, but in recent years these regions have made impressive gains in financial inclusion, with China and India making dazzling progress.

As AFI has emphasized strategic approaches to financial inclusion, many countries, including China and India, have made concerted efforts to better organize their approaches to financial inclusion. With the momentum AFI has generated and sustained, most Sub-Saharan African countries have put smarter policies in place to meet the challenges of financial inclusion, and have reported impressive results. Global Findex data has revealed that, globally, account ownership at formal institutions increased by 700 million between 2011 and 2014. In my view, account ownership has increased by more than 1 billion globally since AFI began. Improvements in China, India, Bangladesh and SSA countries such as Kenya and Tanzania, account for much of this increase. Account usage has also increased significantly in many countries, including India.

The platform AFI has created and the public discourse it has generated and sustained through its daily work and the GPF are behind this impressive record and positive global impact. As a global, member-owned, developing and emerging country body, AFI has made financial inclusion a truly global mission and generated positive and constructive peer pressure to improve domestic policies to advance financial inclusion.

However, AFI recognizes that financial inclusion challenges remain and the agenda is unfinished. The 2016 GPF will focus attention on these issues. As the first GPF to be held since AFI became an independent organization in January 2016, there is no doubt it will be another shining milestone for AFI.

ABOUT THE AUTHOR
Dr. Nimal A. Fernando is a consultant at the Alliance for Financial Inclusion.