empowering tomorrows consumers consumer protection & financial literacy sue rutledge global...
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Empowering Tomorrow’s Consumers
Consumer Protection & Financial Literacy
Sue RutledgeGlobal Coordinator, World Bank
PARTICIPANTS: PLEASE SIT WITH CONSUMER ORGANIZATIONS FROM YOUR GEOGRAPHIC REGION
Empowering Tomorrow’s Consumers Consumers International
World Congress 20115 May Hong Kong
Consumer Protection & Financial Literacy
Sue RutledgeGlobal Coordinator, World Bank
• Program for Europe & Central Asia Region started 2005
• Global Program launched November 2010
• World Bank loans of $28 million
• Ongoing projects of $144 million
• Donor funding from Dutch BNPP, Japanese PHRD, Russian Financial Literacy/Financial Education Fund, Swiss SECO, UK DFID, USAID
Global Program on Consumer Protection & Financial Literacy
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Strategy for Country Programs
Baseline Household Survey
of Financial Literacy & Consumer Behavior
Action Plan to Implement
Recommendations
Diagnostic Review of Legal
& Regulatory Framework
Implementation Program
Follow-up Household
Survey
Feedback Loop
Input
Implementation Programs
Action Plans
-In pipeline
Household Surveys
-In pipeline
Diagnostic Reviews
-In pipeline
Projects Underway
• 33 countries have requested assistance
• Detailed diagnostic reviews completed in 12 countries
• Household surveys in 4 countries
• Action plans in 3 countries
• Implementation underway in 3 countries
• Planned activities in 14 countries
• Armenia, Azerbaijan, Bosnia & Herzegovina, India, Kazakhstan, Malawi, Nicaragua, Pakistan, Philippines, Russia, South Africa, Tajikistan, West Bank/Gaza, Zambia
Status of Country Programs
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Initial Results of Country Programs
•First Financial Education Strategy (2007)
•Consumer Protection Department at CNB (2008)
•Financial Arbiter to cover all financial sector (2009)
Czech Republic
•New regulation of financial intermediaries (2010)
•Banking Association’s ombudsman (2007) and new financial ombudsman (2010)
Slovakia
•Central Bank’s Consumer Protection Unit (2009)
•Steering group on consumer protection (2010)
Azerbaijan
•MoF’s evaluation of institutional arrangement (2010)
•Industry association implemented recommendations (2010)
Lithuania
•Inter-institutional working group on consumer protection & competition, including Reserve Bank (2011)
Malawi
Main Stakeholders
GOVERNMENT• Ministries (e.g. Finance,
Economy, Education)• Public agencies (e.g.
consumer protection, data protection, competition)
• Councils (e.g. consumer protection, education)
FINANCIAL SUPERVISORS
• Financial supervisory agencies
• Central Bank• Financial consumer
protection agency• Compensation
schemes
INTERNATIONAL COMMUNITY
• Donors• Regional organizations• Standard setters• International
associations
REDRESS MECHANISMS
• Ombudsman• Arbitration• Mediation, conciliation• Courts
CIVIL SOCIETY• Consumer
associations• Debt counseling • Foundations• Academia• Media
FINANCIAL INDUSTRY• Industry associations• Training centers• Financial institutions
(incl. distributors)• Financial infrastructure
(e.g. credit bureaus)
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Ins
Banking
Insurance
Private Pensions
Securities
Non-Bank Credit,
incl. MFI
Good Practices for each sector focus ono Consumer disclosureo Business practiceso Complaints & dispute
resolutiono Financial literacy
Credit Reporting
All Formal Financial Services covered by Good Practices
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o Collect and publish case studies and other data on consumer complaints about financial services
o Publish stories showing how consumers can exercise their legal rights
o Publish comparable financial offers
o Provide glossary of common financial terms and concepts
o Maintain a hotline of advice for financial consumers
o Go to court on behalf of financial consumers
o Advocate for improved consumer protection in financial legislation
Some Ideas on how Consumer Organizations can Help
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• Develop organization charts with defined roles
• Draft five-year strategies
• Prepare annual budgets
• Have annual financial statements audited by independent auditor
• Establish track record of impact in helping financial consumers
• Provide advice to government consumer protection agencies
How can Consumer Organizations become Eligible for World Bank Funding?
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Empowering Tomorrow’s Consumers
Consumers International World Congress 2011
5 May Hong Kong
World BankGlobal Program on Consumer Protection & Financial Literacy
Sue Rutledge - Global [email protected]