500 million formal and informal entrepreneurs, 99% of them SMEs including micro-entrepreneurs. The number fluctuates with the ups and downs of the economic cycles. Though since the begin of this year, a significant rebound of the world economy can be felt, it has yet become a emergency recovery. Due to the crisis more than 60 million more people, among them millions of small and micro entrepreneurs, primarily in the less developed countries will be in poverty in this 2010.Many of the achievements in recent years made year to facilitate business of SMEs in the world, to reduce poverty in less privileged economies have been seriously jeopardised by shrinking demand for SMEs export products, increasing prices for energy and food, falling commodity prices, significant reductions in foreign investment and a general liquidity shortage. The strong interdependence among the worlds’ economies made this a literally global economic crisis and human tragedy. SMEs crises prevention and development leading economists, e.g Jeffrey Sachs predict that SMEs cannot rely alone on Government help and financial support in times of crises.
Faced with huge budget deficits and public anger, almost all counties in the world, including the US and the countries of the European Union will have to impose a financial transaction levy, soon, based on the proposal of the Nobel Price laureate James Tobin. The revenue generating potential of a levy is tremendous. A tiny levy rate of 0.005% would generate proxy. $15 billion per year, of which a substantial amount could be allocated to promote international economic development and prevent micro – small and medium enterprises from bankruptcy in times of financial crises. A pilot CTL pilot project initiated by WUSME shall now prove the feasibility of a unilateral CTL on a voluntary basis agreed between Government and local banks.
Micro finance and Agribusiness Our WUSME President Gian Franco Terenzi is convinced: micro financing has proven a critical tool in the fight for survival of SMEs in times of a crisis and for Ford production development. Access to a range of micro finance services, savings, loans, and money transfer enables poor families to invest in enterprise and in better nutrition, improved living conditions, and the health and education of their children. Further a commitment to focus on micro and small agribusiness, the existing approaches being followed by structural transformation, technological upgrading and economic diversification of economies. Agribusiness is the key determinators of overall economic growth and poverty reduction in most developing countries. The accelerated development of agribusiness wants to benefit a large majority, paricularly of the population in most countries of sub-Saharan Africa, and it will enhance the well being of both producers and consumers, generate employment, income and food security and contibute to solve the problem of increasing immigration and emigration of the local population. Access to micro-financing for SMEs in the agro-industry will have priority for WUSME’s action plan. There are indeed strong indications for being CRecordset::optimistic about WUSME’s potential for achieving the goals as set out in the mission statement and in the Declaration of Porpose… Can it be done? Yes, we are confident that success is at hand. Together we can make a difference. The difference will be driven by innovative thoughts, actions and deeds. Dr. Norbert W. Knoll by Jess is Professor (adjunct associate) of economic and fiscal Policyat the International University of Entreprenology, Hawaii, United States,