Microfinancing is a type of banking service that is provided to unemployed or low-income individuals or groups who otherwise have no other access to financial services, according to Investopedia. While microfinancing endeavors were traditionally reserved for men, many representatives in the FAO have urged the need for these loans to be accessible to women.
“By offering microfinancing loans to women, we can allow for more people who cannot currently develop sufficiently to achieve their goals," said the representative of Mexico in the FAO.
Draft Resolution 1.2, proposed by the representatives from Mexico and Spain, encompasses these ideas of allowing equal opportunity to loans for both men and women—something that is greatly needed within the current geopolitical climate. The goal, according to the Mexican representative who currently sponsors the paper at hand, is to provide equality in all countries regardless of geographical boundaries and current economic boundaries they may possess.
The passing of this paper is vital, not only for the FAO, but for the international community of farmers as a whole. FAO is currently discussing how best to provide aid to developing small family farms.
The proposed system reduces dependency on investors by ensuring low interest rates and a diversified field of recipients.
The goal of the FAO is to completely eradicate food insecurity throughout member states, and this can be done by implementing the program in the Mexico-Spain joint paper.