WikiLeaks: A Battle for the Truth?

My Administration is committed to creating an unprecedented level of openness in Government. We will work together to ensure the public trust and establish a system of transparency, public participation, and

collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government. Barack Obama

 E vidently, this statement signifies the importance of having transparent governance systems and ensuring the public’s participation in decisionmaking processes which can be called “a greater democracy.” However, the WikiLeaks revelations have raised much controversy on whether such transparency is desired within the ruling framework. Some condemn it for being irresponsible, illegal and an institution of terror. 

Others praise it for propagating the ‘truth’ and defend freedom of the press. Needless to state, WikiLeaks has tried the limits of transparency and censorship in modern day journalism and government affairs. Many statespersons and  governments appear rattled and threatened by the leaks especially the United States whose Justice Department was reported of their aims to prosecute Julian Assange, the founder of the site, and WikiLeaks under the Espionage Act. Numerous private companies and online payment systems such as Visa, Mastercard and PayPal terminated their services in response to protect their “terms of service” and hinder the organisation’s “illegal” leaking activities. Some of these terminations or suspensions were also cited as a result of indirect pressure from the US government, for example, the US Senator Joe Lieberman had personal interference in Amazon and Tableau Software’s closure of services to WikiLeaks. Amazon has denied such pressure to be a factor.

  In general, the leaks have been scripted to risk national security of the US and the lives of people in other countries. However, such claims remain to be proven and WikiLeaks is yet to be judged in the court of law. Nevertheless, the radical actions taken against the organisation, in

spite of the lack of evidence of illegal conduct and judgement by law, raises much concern

on existence of democracy. It is not the leaks which are alarming but the fundamentalist reactions of the government to neutralize and discourage citizens and journalists to exercise their power and freedom in raising their voice to spread the truth and efforts made for promoting  accountability of abusive power structures On the other hand, numerous media institutions and the public have expressed their support and sympathy to WikiLeaks. In a letter sent to Prime Minister Julia Gillard which was initiated by the Walkley Foundation and signed by ten members of the Walkley Advisory Board and elites of the Australian media, the following statement was made.

“In essence, WikiLeaks, an organisation that aims to expose official secrets, is doing what the media have always done: bringing to light material that governments would prefer to keep secret. It is the media’s duty to responsibly report such material if it comes into their possession. To aggressively attempt to shut WikiLeaks down, to threaten to prosecute those who publish official leaks, and to pressure companies to cease doing commercial business with WikiLeaks, is a serious threat to democracy, which relies on a free and fearless press.”

So what happened to freedom of expression and freedom of the press? What happened to the

potential human rights violations revealed through the leaks? Why are they not being investigated but an institution’s commitment in disseminating the ‘truth’ to the public is being “hunted” by the very system which preaches openness, participation and accountability? Are these the government’s attempts to promote justice and democracy or is it an institution of hypocrisy committed to secretive atrocities? WikiLeaks is an exemplary proof of what the free web and independency of a media organisation can achieve in terms of holding the potentially abusive power holders and structures accountable to the public and other stakeholders. 

According to Julian Assange, WikiLeaks has published more classified documents than the rest of the world press combined. He adds the following remark:

''That's not something I say as a way of saying how successful we are - rather, that shows you the parlous state of the rest of the media. How is it that a team of five people has managed to release to the public more suppressed information, at that level, than the rest of the world press combined? It's disgraceful.”

Regarding human rights violations and abusive practices, media institutions have either been manipulated by the power-holders to keep the citizens in an eclipse of awareness or they have miserably failed in their efforts and duty as a watchdog to expose abusive acts, for example, the controversial and indiscriminate killings of civilians revealed in the leaked video called “Collateral Murder.” WikiLeaks presents the need for independent press institutions which can efficiently deliver unbiased and free-from-influence reports to the public. This is in the interest of achieving that “greater democracy.” Today, we live in a technological era where the possibilities of new media, web journalism and relative ease of communication have promoted citizen journalism to a great extent. Citizens, independent journalists and media institutions are able to have a more active and participatory role in influencing matters which concern them and their respective families, communities, society, and even international communities. People are more easily, rapidly, independently and in unity able to report about human rights abuses, developmental needs, or other sensitive issues which require local, national and international interventions. People are freed from the chains of influences which function against humanity and below the surface. If freedom of expression and freedom of the press is not protected, then the public risk being voiceless and powerless and decision makers and governments can enjoy immunity to consequences of their actions committed against the law and human rights.

 Regarding WikiLeaks, we are witnessing a monumental period in history where governments and power holders are required to mirror their decisions and actions and respond to the international community. An attempt in disempowering and neutralizing voices which enabled such accountability is an attempt to “assassinate” the ‘truth’ and our fundamental rights. As Ron Paul, the Republican Congressman of Texas stated:

"In a free society we're supposed to know the truth.”

"In a society where truth becomes treason, then we're in

big trouble."

(Author can be reached at lawin.khalil@silcreation.org)

Invisible Deaths and New Reform Policies in Tanzania...

The man in the picture was pictured begging on a highway on a sunny day. The man probably will sit there for more then eight hours with his hands raised up as you can see him in the picture.

A year ago one man of the same frailties was found dead in the middle of the streets. After a careful investigation by the police, it was mentioned that ‘hunger’ was the cause of death. Reportedly, when he was taking his last breaths, he stayed without eating continuously for three days, but he never stopped raising his fading hands to ask for a help hoping someone would stop by and give him a loaf of bread or even a glass of water. No words could come out of his mouth as doing so would weaken him further. The man was languished on the road, terribly with terrible thirst for water and extreme hunger. Those who passed by never ‘noticed’ how weak the man was nor did the light flash their minds to make them at least turn their faces on him. They

were all used to him, a man sitting along the corridors of Indian shops, raising his hands, hands that were like traffic sign on the side of the road.

   As his hands were always seen raised, people assumed he was okay. Unsurprisingly, it took them almost a month to notice that the man’s hands were no longer there and his shadow could not even be traced anymore. Probably, this was because his death was too sudden and fast. Now that he was out of the streets, people felt like something was missing; you could hear them in corridors of streets and tea cafes talking about how the dead man used to talk, raise his hands,

where he used to sleep and the dresses he used to put on! 

Dear readers, this is just part of a hundreds of stories you might hear or read from all over the world of people languished in poverty, in the streets. This country has heard of many stories about a very famous, blind and street beggar by the name of Matonya whose origin is within the capital city, Dodoma. Hispopularity spread all over the country for, he has continuously been returning to the City of Dares Salaam after several efforts of the City Council to drive him off the streets back to his home village. Everytime he lands back in the city, he lands back with ten more friends of him doing the same ‘business.’ One confusing and rather interesting fact about this man’s life is that, it is believed that he is one of the richest men in his home village owning a number of cattle, and a huge portion of fertile land for agricultural activities but because the begging business appeared to pay him much, he has since then opted to make it his career! It is obvious for people to think that for how long the man would keep on begging where he would take his last breathing moments.

Almost 49 years after the independence in 1961, what you still see in Tanzania is a vast difference between the poor and the rich and the widening gap between rural and urban populations. A vast majority of Tanzanians live in villages, often in dilapidating living conditions; under leaking roofs and insufficient or poorly organized sanitation facilities. Some people believe that it is a shame, naturally, that this country takes with it day after day under regional and international sphere that, after all the natural wealth (lakes, ocean, minerals, national parks, fertile land and historical tourists adventures) , years of peace and political stability, the country still is poor and its people cannot afford to build standard toilets.

 

Today, the government is advocating of its intention to have better housing and better living standards for its people; better health and educational services-but it is not clear how and when that is going to happen. Like the Matonya genres, despite of the wealth and resources that this country holds with it, the government has been asking for aid from donors; over 50% of its annual budget comes from contributions made by international donor countries and other international organizations like the IMF. People certainly have welcomed the government for coming up with new strategies aiming at reducing poverty rate in the country and strengthening country’s economy (locally know as MKUKUTA, National Strategy for Growth and Reduction of Poverty [NSGRP]). The strategy works almost within every social and economic sector, educational sector, health sector, agricultural sector, and many more. Each sector therefore, implements the strategy for sustainable achievements of the crucial needs and requirements in the respective sector Indeed, from the strategy, people to participate in different health and educational projects as a result, more schools have been built, increase in the number of health centres has been possible; clean water services have been expanded to reach those areas which previously had no such services. The strategy has also enabled the least disadvantaged groups of women to get loans for development purposes and build up their income capacities, the fruits of which are apparent to those who have been lucky to receive the same loans, mostly, those in towns.

But with the establishment of the kilimo kwanza Policy in 2009(agriculture first), the mkukuta strategy seems to have been geared up as farmers in the villages can now be reached and are encouraged to put more efforts into agricultural production. The government, through the responsible ministry, provides free agricultural infrastructures (inputs) to needy small farmers through vouchers distributed by registered agents to help farmers expand their farms, use better

seedlings and apply advanced insecticide to protect their farm products and produce health and excess yielding for commercial and consumption purposes. The government has gone far beyond by establishing new market places, restricting uncontrolled sale of cash and food crops outside the country, and controlling market prices to avoid the possibility of farmers selling their crops below the market price. The government has also opened up more bonded warehousing where it buys cash and food crops and keep them for emergency purposes (e.g. hunger and draught). Indeed, these are incredible achievements and the government has to be supported for such efforts. How far these achievements by the government have helped its citizen get away with poverty or strengthen the country’s economy to get rid of Matonya’s shame under regional and international level? This is obviously a difficult question to answer.

At times when the country and ordinary Tanzanians appear to be waiting for a miracle, a strong wind of poor provisions of health services and worse living conditions is massively blowing. Nevertheless, there is still a big number of primary pupils who keep sitting on the floor under leaking roofs and cracking walls; secondary schools do not have enough teachers, one book at a university level is being shared by more than 15 students; country roads are not accessible at all during rainy seasons; excessive power cut has now become the national song while subjecting the government into billion dollars debts backed up by a battle of corrupt transactions.

 Eventually, the country has now been divided into two major groups; the haves, minority government top officials, who protect the interests of the so called investors by 10% commission and the haves not (majority citizens) who are now regarding themselves as refugees in their own country-the invisible men, women and children raising their hands for a help just like how the dead man mentioned in the beginning of this article used to do. Surprisingly, the government has introduced a highly ambitious plan to kick out poverty by 2015, one of Millennium Development Goals (MDGs) at a time when ighty percent of its major local industries are all privatized while mining centers, banking institutions and mobile companies are in the hands of foreign investors.

(Moses is Global South Development Magazine’s country correspondent for Tanzania and can be reached at cyrilmos@hotmail.com)

The Real Entrapment of Latin American Miners...

  The breaking news of 33 miners trapped some 700 meters below the surface of the San Jose mine in Chile after a collapse on the 5th August this year took the world by storm and captivated the hearts and souls of the media and the public alike. News of the progress of their rescue poured in and we learned every intimate detail of each of the trapped men, from what they like  to eat for breakfast to the complications of their love lives. Since then, ad hoc news stories

have appeared of other unfortunate souls in similar predicaments around the globe. In the last few months of 2010, the BBC alone reported on fatal and near fatal mine trappings in Ecuador, China and, most recently, New Zealand, reminding us that the risks associated with mining are not endemic to the developing world. The Chileans’ actual rescue, a staggering 69 days later,

caused another surge in interest and earned them the record of the longest time survived trapped

underground. The extent of coverage of the human interest story behind the Chilean miners, however, was not replicated for the other stories since or those that came before. For example, in the year before the August 2010 Chilean miners’ entrapment, other reports of trapped miners with stories of happy rescues and terrible tragedies were documented in China (with a February 2009 incident affecting over 400 men), Australia, Colombia, India, South Africa, Rwanda, Canada and the US to name a few, which together did not generate the same level of coverage as the Chilean tale. For ‘trapped miners’ on Factiva (which compiles searches on news headlines

around the world), reveals that despite hundreds of trapped mining events in the last two years, news coverage had soared around the time of the Chilean trapping story and again around the time of their rescue, with a significant drop in mining story news coverage throughout December 2010. The previous smaller peak around March 2010 was caused by the story of 153 miners trapped after floods in Xiangning, Shanxi, China. Reportage has centered heavily around human interest stories and despite the high risk the mining industry represents to the health and safety of its workers, the extent of human loss of life resulting from terrible working conditions has largely been ignored. In the West, when we think of mining, we think of mechanized operation, yellow hard-hats and well-paid project safety officers. The reality for millions of men, women and even children in poor countries could not be a starker contrast to this. Many have been grandfathered into the profession and are forced to work in the mines by a combination of social pressures and lack of alternative opportunities, and though many communities have based their

entire livelihoods around the mining industry, working conditions are much more dangerous than in developed countries due to lack of investment in the latest safety equipment, lower standards of health and safety regulation and weaker worker rights, enslaving generations of miners to a 

precarious existence. 

As the media mining interest begins to fade, Latin America, with its rich history and tradition in mining, and the Potosi mines of Bolivia in particular, with their substandard conditions and low pay, provide perfect case study examples with which to dive in a 

little deeper and bring the spotlight onto those forgotten by the recent media splurge, before it is relegated to the archives of news fads. First, let me provide a snapshot on the history of mining on the continent with a focus on the working environment and the culture of unavoidable servitude. Going all the way back to the fifteenth century, it is no secret that the Spanish (and European) colonial Conquest (1492-1570) was largely driven by the ‘worship of silver and gold’, and the mining, processing and transport of precious metals. The discovery by the Spanish of large silver deposits at Potosi in Southern Bolivia (the highest city in the world, towering at 4,090 meter above sea level), led to their development in 1545. A huge city built up around the 

mountain and by 1573 it had the same population as London and by 1650 it was the largest and richest city in the World, ten times the size of Boston.  Based on a detailed account by Dore, E. (2000) “Environment and Society: Long-Term Trends in Latin American Mining”, Environment and History, Vol. 6, No. 1, pp. 1-29 and Eduardo Galeano’s infamous 1973 book “Open Veins of Latin America”, Monthly Review Press, New York. The locals will tell you tails of such wealth and riches that you could find almost any item imaginable to have been made of silver. The wealth that collected in Potosi and that transferred to Europe was largely built on the backs of Indian and African slaves, which was also the case for mining all across Latin America.Even with the abolition of slavery on the continent (including Chile in 1823, Bolivia in 1831, Peru in 1854, and the last of Latin American countries being Brazil in 1888), the mining industry in South America was still largely based on force and indebtedness of workers. The conditions in the underground mines led to the demise of thousands of Indian workers due to mercury poisoning, other minerelatedhealth effects, and general exhaustion.

    A technological revolution in mining and transition to open-pit mining of the 1960s generally led to big improvements in the conditions under which miners worked, and mid twentieth century saw big improvements made due to the militancy of Latin American trade unions. But fastforward to today’s Potosi and a different picture emerges. On a tour of the mines, our guide, a 

young ex miner-turned tour operator, Juan Jose, gives us a little bit of insight. According to him, the mountain only has a few more decades at most before it either collapses or there will be no

minerals left to mine. Whilst, after almost 500 years of mining, it was only 10 years ago that a few of the larger syndicates (into which the miners are organized) have installed electrical pulling mechanisms to winch up the heavy rock-laden barrels up to the surface. The rest still carry the ore to the surface on their backs in 35kg sacks. The transportation system of rocks within the mine itself is still based on pairs of miners manually running the large-sized metal containers along tracks. As they pass by in the tunnels, it is customary for visitors to give gifts of coca leaves, cigarettes, fizzy drinks or Ceibo (the miner’s tipple of choice to get through a hard days’ work – a 96% volume clear spirit). Throw in one meal a day at most and that is what makes up the typical diet of a miner here, there is simply no appetite, especially as it is suppressed by the coca and the altitude.

      As you slide further into the mine shaft, sometimes on your hands and knees, a dizziness ensues from lack of oxygen and an overbearing presence of other gases and heavy particles in the 

tunnels, which taste like acid and feel like sand against your airways. “Arsenic and asbestos”, proclaims Juan Jose, upon noticing our discomfort, as he chews on his coca leaves and grins with black stained teeth. He does not expect to live past forty. And he is pretty spot on, since that is the life expectancy for the residents of Potosi, now one of the poorest places in the World. The biggest cause of death is lung-related illness. It is estimated that over eight million men have died in these mines from these and other afflictions and mining accidents, whilst up to a thousand 8-12 year olds toiling in the mines today are likely to suffer similar fates upon reaching 

middle age (BBC, 2004)

   

In addition, miners and their families as well as other local people suffer indirect effects from

environmental pollution and unregulated mine discharge. Perhaps not so much unregulated, but definitely insufficiently policed, since broad and progressive environmental legislation became law in 1992, however it remains largely ignored by the mining industry at Potosi and elsewhere.

Evidence comes from a recent study of the acid drainage in the economically vital, but heavily polluted Rio Pilcomayo downstream from Potosi. The study found concentrations of

heavy metal contaminants to exceed government permitted levels at all tested sites, leading the

authors to conclude that the discharge from the mines exceeds regulatory levels too. This particularly a problem since the local population is then exposed to these chemicals through ingestion of contaminated water, agricultural products (which are also sold all over the country, thus spreading the contamination further) and fish (since lower Rio Pilcomayo is a major commercial Bolivian fishery).What is really striking in all this is the lack of choice. Juan Jose is one of the lucky ones able to escape from the twelve-hour backbreaking days, six days a week at a daily rate of 100 Bolivianos (a mere $12.50 US). Most miners are not so lucky, yet as far as they are concerned there are no alternatives. They are largely uneducated and provide unskilled

labour, so even if they did know of other opportunities, most would be powerless to do anything about it.

The real human tragedy here lies in the loss of the lives of millions of miners in places like Potosi, dying prematurely, slowly and painfully. Their situation and working conditions have changed little in the last few centuries and they see no prospect for change. In light of the Chilean miner entrapments, a huge opportunity to put pressure on the powers at be for real change by highlighting these people’s appalling working conditions and lack of health and

safety regulation enforcements in the industry they (and 500 years of their ancestry) gave their lives too, has largely been missed in the recent media mining frenzy. Slavery may have been abolished one hundred and fifty years ago, but enslavement (through lack of choice) in mining all over Latin America is still a reality. Yet the focus of even the most trusted and prestigious news outlets in the last six months has been more concerned with gossip and trivial information about the 33 survivors in Chile. If the media can evoke such interest and sympathy for a group of miners who were trapped beneath the earth’s surface for 69 days, it should be able to build on

that and give its attention and support to people who have been trapped beneath an oppressive

industry for the last 500 years.

(Ioulia is Global South Development Magazine’s Regional Editor for Latin America and can be reached at

275971@soas.ac.uk)

Besides the fact that 130 millions of the world’s poor are being served with the microfinance

services, the rapid growth of microfinance institutions has been seen since last three decades.

It can be argued that microfinance has some positive benefits to those who do not have an access to other formal financial institutions. Nevertheless, the focus of microfinance has been so called ‘’social entrepreneurs’’ who are self employed, household based entrepreneurs rather than those who really are qualified for the profitable micro enterprises. 

The poor borrowers who fall below the break-even point in providing loans or deposits below which banks lose money on each transaction. So, there is always profit orientation no matter if it’s a bank, private lenders or poor

borrowers. There is a saying, ‘’A poor gets always poor and the rich gets rich’’ which can be attributed to the availability of resources and their use. 

The money is fungible as always so it might not be congruous for all the poor borrowers all the times, especially for loans that are borrowed in regard to start a business or invest to generate money. The main risk herein for client is to think if they can payback? 

This is as hard question as ‘what came first: chicken? Or Egg?’ To those clients (poor) who don’t really know what generates profits and when? How much to invest? Microfinance can always make sense only when a client starts a successful business and repays so that he /she has some amount of saving to re-invest by their own risk ( risk again! ) . Microfinance Institutions (MFIs) do not seem to be interested in looking at the issue from the borrowers’ perspective and ensuring that the poor don’t get deeper and deeper to the well of loan cycle and poverty from where there is no possibility of coming out.

Tomorrow’s microfinance should not only be lending money to the poor but should also make

investment in them specially to boost their entrepreneurial skills which could be education, training, right guidance to start up the right bag pack for the journey or risk free or less risky investment endeavors. It has often been rightly argued that basic requirements like food, shelter,

and employment are often more urgently needed than financial services. There is no doubt that these contentions are well founded. 

No matter how much water you pour on the bottle there is always a bottle neck point which has to be widened for smooth flow of water inside the bottle without risk of pouring out. So, the microfinance tools cannot always solve the problem of the poor borrowers until or unless the investment is made to train the enterprenual skills and let them be ‘’safe ‘’.

(Dinesh is Silver Lining Creation’s Marketing Manager and can be

reached at dinesh.poudel@silcreation.org)

Microfinance in pictures...

Tanzania has since the 1990s attempted to embrace microfinance as an approach and a tool in the fight against poverty. Several institutions including commercial banks, and nongovernmental organisations have offered a hand to support microfinance. Micro financing relies on private and charity institutions. However, the sector has always been so much challenged to the extent that the poor majority rely on their own mobilizations, hence, the mushrooming of savings and credit cooperative societies and associations in the recent past. These, however, still have failed to a large extent and haven’t been able to save those who hardly have anything or very little to save. As a reaction to this situation, local arrangements, such as; revolving funds starting from little by little contributions (Kibati, upatu, WORTH -literacy, community banking, and small business development’, Village Community Banking – VICOBA etc) have been welcomed.

Pic 1 : A weekly women’s group banking

session in Moshi district council,

Kilimanjaro region Tanzania

Pic 2 : Mobilization strategy: women

with support from few men, use

drums, dance and theatre to

mobilize others 

(Lingson Adam is Global South 

Development Magazine’s Regional 

Editor for East Africa and can be 

reached at alingson@yahoo.com)

Microfinance in the Middle East and North Africa...

In an era of development theories which focus on individual and community empowerment, microfinance plays has become an important strategy; encouraging individual entrepreneurship and offering opportunities for micro or small business development. Microfinance has spread across the globe in many different forms and guises, it is offered by many different institutions, from banks to NGOs, each with their own ethos and objectives. In the Middle East and North Africa (MENA) region, its development has been more limited than in other parts of the developing world.1 Yet, many actors, including political figures and Microfinance Institutions (MFIs) are now promoting the growth of microfinance in the MENA region, citing success stories of women’s empowerment and economic growth in other regions. In the midst of the mass popularization and promotion of microfinance it is worth standing back and asking, what real value does it bring and what can it offer to tackle the development problems in the Middle East.

The extent to which microfinance operates in MENA varies considerably across the region: Morocco, Egypt and Jordan are

described as being the most developed markets, with Egypt and Morocco receiving almost 77% of microfinance funding for the

whole region. Emerging markets are Yemen, Syria and Tunisia, whereas other countries, such as Algeria and Libya, have barely any activity, very low market penetration and little MFI activity. Many operators see it as a growing sector and are keen to attract more clients in the region,  proposing options such as expanding from mainly microcredit provision to other types of microfinance, such as savings or combining Islamic Finance and microfinance, to respond to local

interests.

Yet, as a form of economics heralded to benefit individuals, it is vital to assess the impacts of existing microfinance activities in the MENA region. As Jon Westover points out in his appraisal of the sector worldwide, there is a significant lack of independent information available regarding the impacts of microfinance. Studies carried out offer limited samples and are quick to point out benefits, but slow to mention problems encountered or disadvantages. A Planetfinance study examines impacts in Syria, yet with no baseline figures to refer to, drawing real conclusions from the research is difficult. A European Investment Bank (EIB) study attempts to

pool together the results of various studies to offer a general overview of microfinance in MENA. The study highlights positive impacts for women who gain greater autonomy and decision

Furthermore, many studies are carried out by MFIs or other interested parties. A further difficulty is the correlation between microfinance and national economic growth. Microfinance works on an individual, local level and its impacts on national growth or decline are difficult to assess. Furthermore, its focus on bettering the economic power of individuals necessarily dictates that its general impacts can be difficult to assess and statistics are dangerous to generalise.

A Planetfinance study examines impacts in Syria, yet with no baseline figures to refer to, drawing real conclusions from the research is difficult. A European Investment Bank (EIB) study attempts to pool together the results of various studies to offer a general overview of microfinance in MENA. The study highlights positive impacts for women who gain greater autonomy and decision making power through participation in microfinance projects. At household and business level improvement is seen in income levels.9 However, in the studies cited these positive benefits apply to half or less of people interviewed and there is no comment or analysis of the cases where individuals have not seen positive impacts or have seen other impacts. This is also the case in a Planet Finance review of its performance in Syria, where in an assessment of a large array of impacts, less than half of the clients interviewed perceived positive changes following participation in a microfinance project.

As well as the direct impacts of microfinance, in most MENA countries the particular institutional organisation poses problems. MENA countries are generally led by an overly powerful executive, keen to promote economic growth, but not necessarily proactive in creating growth which will benefit all citizens. Furthermore, many MENA countries operate legal systems, many of which are governed by Islamic Law principles which restrict certain commercial contracts and forms of

economic investment. Indeed, many governments in the region have not created regulatory frameworks for microfinance in the region and many operators cite this as a problem.

Despite some positive impacts, it seems microfinance causes no change or negative impacts in many cases. Further investigation and analysis is required to understand these effects and should be considered when developing future projects. Other regulatory issues also impede growth in this sector including: few consumer protection measures; bureaucracy; and restrictions on deposit –taking.This article has attempted to highlight some of the issues surrounding microfinance in the MENA region. Although it criticises a sometimes overly-idealised development strategy, this author certainly does not want to overlook the fact that this type of investment has worked well in many contexts and that there exists real potential for development and empowerment through this form of investment. Yet, independent information gathering and real debate about this

issue, as opposed to mass promotion of its benefits, will most certainly improve the quality of microfinance for all those involved. Major actors should develop strategies which support those involved to develop the capacities they need to make schemes work in their favour. Actors must be vigilant to ensure that the scheme has real benefit for those involved and does not worsen

poverty for participants. Furthermore, states should develop mechanisms which hold MFIs to account for ethical behaviour and provision of real support and careful assessment to

potential entrepreneurs. Finally, the issue of economic growth through microfinance or other forms must be seen in the light of the wider civil and political problems in the region which,

until tackled, will impede the free development of every individual. Indeed, microfinance, even if successful, can only be one step in part of a bigger march for tackling development problems throughout the Middle East.