Thank you.
I'm here witnessing on behalf of MEDA, Mennonite Economic Development Associates. We're a non-governmental organization that has been implementing sustainable economic development programs internationally for over 50 years. We are known as leaders in micro-finance and enterprise development, covering the gamut from investment fund development to capacity building at the community and individual levels.
Perhaps more importantly to this discussion, we have worked in many transition and conflict-affected countries; for example, Romania, Uganda, Tajikistan, Haiti, Nicaragua, Angola, Pakistan, and Eritrea, and we have experienced the power of Canadian civil society to build bridges and bring hope to people who have undergone chaotic and often violent change.
MEDA has been working in Afghanistan for almost three years now. I personally have gone to Afghanistan three times. We have supported a number of organizations that are implementing micro-finance programs. We've collaborated with local organizations, such as the Afghan Women's Business Council, a national organization. We've conducted consultancies for the UN, MISFA, and international NGOs in the area of sustainable private sector development. We have carried out exploratory missions for our own programming.
Recently we received approval to launch a CIDA-funded women's economic empowerment project in early 2007. Through this program we will reach down to village women, integrate them into mainstream markets, and enable them to be active agents in advancing the well-being of their families and communities. I have had the privilege of meeting rural women in Parwan province and I can assure you that they are eager to be in work and they are grateful for Canada's support.
During MEDA's three years in Afghanistan, we have also seen the tremendous impact that Canada's development contribution is having on the rebuilding of the nation.
As you may know, there are two large multilateral programs that receive significant support from CIDA. One is the micro-finance investment support facility for Afghanistan, which I'll refer to as MISFA; and the other is the national solidarity program, NSP. They have received $50 million and $30 million respectively from the Canadian people.
MISFA, the micro-finance investment facility, currently has well over 200,000 active clients, with $36 million in loans outstanding and a phenomenal repayment rate of 98%. Under the MISFA umbrella, MEDA, my organization, has supported Women for Women International in setting up its micro-finance program--training loan officers, designing appropriate loan products--and is currently transferring management to local staff. This one small program of MISFA currently reaches 6,000 female clients, typically with five to eight children each, enabling 30,000 to 40,000 people to be lifted out of deep poverty and to participate in the creation of a stronger and more stable and secure future.
Joyce Lehman went to Afghanistan with MEDA and then joined MISFA as the chief operating officer. She recently became adviser for the micro-finance industry in Afghanistan through the USA-funded ARIES project. She e-mailed me on the weekend from Kabul and said that Canada has been the largest donor for MISFA, which is one of the major success stories in the country. The plea is that donors such as CIDA continue to support the sector for another two to three years to give the micro-finance institutions time to establish themselves as sustainable Afghan institutions, with Canada having played a key role in the establishment of the sector.
As we have all seen, I'm sure, from the recent award of the Nobel Peace Prize to Muhammad Yunus and the Grameen Foundation, a reliable micro-finance industry can have a profound impact on reducing economic hardship and freeing communities from crime and strife.
The other large multilateral initiative supported by Canada, the national solidarity program, has established a country-wide network of democratic and inclusive community-level structures, the community development councils. These councils give citizens a voice in Afghanistan's development.
A primary motivation--and this is important in terms of negotiation--for participation in the CDCs is that they have access to donor funds for projects that have demonstrated popular support in their area. This venture has enabled remote villages, for example, to construct schools, operate health clinics, rehabilitate irrigation works, improve roads, and so on.
On a trip that I took to the hamlet of Chawalkhel in Wardak province, I was proudly shown one such project: a large new boys' school that served all the families in the district. A chief regret of the men and women with whom I spoke was that there had not been funding for a girls' school as well. This was not an effort to pay lip service to my western views. One of these women was widely admired for having risked her life to teach village girls underground during the Taliban regime. There are many such stories in Afghanistan.
While these multilateral initiatives are absolutely critical, it is also necessary to underline the importance of the more limited direct role that Canadian civil society has played and can play in Afghanistan's reconstruction. Recently efforts have increased to involve Canadian executing agencies and private sector players in the development agenda. MEDA is proud that, through its women's economic empowerment project, we will be able to contribute to this process. At MEDA, we have observed how important direct contact--citizen to citizen, NGO to NGO, business to business, educational institute to educational institute--is for the growth of local capacity and the empowerment of individuals, businesses and national civil society.
As a not-for-profit, MEDA has opportunities for engagement that expatriate employees of multilateral programs and other nations do not have. Typically, for example, embassy and UN staffers spend their day in the office, go home to the guest house and travel in armoured vehicles, with no opportunity to interact with Afghans outside of these contexts. As a MEDA staff person, I have been free to move around, unarmoured, unprotected, and to engage with Afghan people. I have travelled to rural areas, and I have heard the requests for support from householders and women's groups. I have chatted amiably with roadside vendors as tanks patrolled the streets. I've eaten in a women's room in a provincial restaurant, and as the veils were removed, I have listened to the stories of women from every walk of life. And I have walked through the streets of Kabul with a distressed father to a pharmacy to purchase medication for his sick child, explaining to him, the pharmacist, and others in the shop that I am a mother of five from Canada. The engagement of Canadian civil society on the ground and the implementation of our development programs make a significant contribution to peace, prosperity, and the building of democratic rights and freedoms in Afghanistan.
MEDA is delighted and honoured that we have the opportunity to be heard by this committee. Based on our organizational experience in Afghanistan and around the world over the past 50 years, we would like to make the following recommendations:
First of all, we would suggest that Canadian dollars can be effectively used to build bridges between Canadian and Afghan individuals, groups, institutions, businesses, and other agencies. If our efforts concentrate on military intervention alone or on publicly funded programs, we miss the chance to engage directly and to be messengers of hope for a better and more stable future.
Second, by working directly with the private sector, we are laying the foundation for sustainable development. When the donor dollars disappear and the executing agencies no longer run programs, if the private sector has been strengthened, then development can continue.
Third, we believe there would be great benefit if Canadians in general were more aware of the results of CIDA's programming: MISFA, NSP, bilateral programs. If the press could be encouraged to present on these outcomes as well as on the military actions and results, the efforts of Canadian civil society and of organizations such as MEDA that work on the ground unprotected, to contribute towards democratization and security through poverty alleviation and other important programs would be reinforced.
Fourth, we would ask you to reconsider the pressure that Canadian civil society is experiencing from the government to program in the most insecure parts of the country, such as Kandahar. We've been asked to take our programs there rather than to other districts; however, all areas of Afghanistan are facing challenges. If we can bolster districts and provinces that have a greater chance for success, we will have gone further in supporting sustainable processes for long-term stability. Then, as Kandahar becomes less risky, we will have good knowledge of the country, proven successes on which to build, and the capacity to move quickly to set up effective programs.
Finally, we strongly recommend that all of us leverage Canada's leadership and the international reputation we have as a builder of peace, democracy, and equitable, inclusive nations, and as much as it is possible seek non-military responses to development challenges, harnessing the creative energy of Canadians and Afghans alike to create the proverbial better world.
Thank you.