2024 AFI Global Policy Forum – Opening remarks by AFI Executive Director, Dr. Alfred Hannig 

Ladies and gentlemen, dear friends, 

Welcome to the 2024 AFI Global Policy Forum in San Salvador. Let me start by thanking our co-host, Banco Central de Reserva de El Salvador, its President and Vice-President, and the very committed BCR team who have been working for months to deliver an incredible GPF. 

Today, we published a short video containing some headline figures about AFI’s impact over its fifteen-year history, and quotes from AFI leaders past and present which encapsulate the principles of financial inclusion, of AFI’s approach, and of our cooperation model.  

I want to share a small, personal story. Recently, I had a rather intense conversation with my ten-year-old son. He asked “Hey, Papa, this AFI thing, do you think it has changed the world?’” Now, my immediate reaction was to think, I don’t know if I would go that far. You know how people who work in financial inclusion are a humble, modest bunch. So my cautious and honest response to him was, “I think I can say that we did a few things differently, and a few things better than we did before.”  

But the numbers in our video tell their own story. Over the last fifteen years, AFI members have brought in over 1,000 policies that have financially included 850 million people. Just think of how many lives, families and communities we have changed for the better. When I get back home, I shall set the record straight with my son. Yes, AFI has changed the world. 

And it’s noteworthy how much (or more accurately, how little) it has cost to achieve this. In fifteen years, AFI has spent around US$200 million, and 850 million people have been financially included. Roughly, it has cost 20 cents to financially include one person. At a time when some donors seem to be deprioritizing their engagement, it’s worth highlighting the solid business case for investing in financial inclusion. 

850 million people included, across the globe.  

Until recently, I occasionally used the term ‘Global South’. But I’ve realized that attempting to portray nations as diverse as China, Madagascar, Fiji and Nigeria as a coherent group is inaccurate and unhelpful. Other than all being located on Planet Earth, it’s difficult to ascribe a unifying feature to developing nations. Their staggering economic, political and climate diversity compromises any attempt to group them together. There is also the geographic dimension. How can Astana, the capital of Kazakhstan, which is further north than Luxembourg, be in the Global South? How can New Zealand not be in the Global South? 

There’s also a danger in this, because the term is dangerously polarizing. Separating the world into ‘Global South’ and ‘non-Global South’ undermines international cooperation, particularly in a time of geopolitical conflict. It adds fuel to the fire.  

In AFI, we see every day how incredibly diverse our members are. But while each is unique, two things bring them together. First, they share a belief that policies, regulations and development strategies must reflect a country’s context. The second commonality, highlighted eloquently by the quotes in our video, is a commitment to inclusivity. This joint focus on inclusivity and on country context has been the recipe for AFI’s success.  

The theme for the 2024 AFI Global Policy Forum connects inclusivity and innovation. And if there is one word which encapsulates the spirit of El Salvador in 2024, it’s innovation. Here, I sense a desire and an enthusiasm to innovate, create, take risks, and embrace the potential of new technologies. This philosophy permeates all aspects of life, and is transforming the country. El Salvador is a very different place to what it was 10 years ago. The sense of energy and optimism is palpable. 

This national transformation would probably have been slower and more complicated if El Salvador was a big country. Here, we see the advantage of being small and nimble. But giants can innovate too, because innovation starts with a state of mind, with curiosity and open mindedness.  

At this year’s GPF, we’ll look at innovations from around the world which are working to advance financial inclusion. Perhaps only one in ten bold initiatives delivers breakthrough results, but it’s always worth going for that one-in-ten shot. 

Let’s share our intelligence, see what’s working, and advance together. 

Financial inclusion for AFI means including everyone, and to get there we will need a lot of innovation. But inclusivity also requires a commitment to social justice and to equity. Financial Inclusion needs to be human-centered. That involves working to understand excluded groups’ needs and challenges, and involving them in figuring out solutions.  

You may say, central banks and financial regulators have enough on their plate without having to worry about social justice. And they do. But what I sense is a growing realization among banks and regulators that inclusivity creates a more robust and resilient society, and that meaningful progress cannot be achieved without asking tough questions like “Why are certain groups excluded?” and “What can we do to include them?“ 

I’m from Germany, where recent elections reveal what happens when policymakers lose sight of inclusivity. Anti-establishment, anti-political elite movements are springing up everywhere. The work of our members shows each day that working for inclusivity stabilizes not only economies but whole societies.  

During the next two days, we’ll be exploring how to create an environment that ensures that no one is left behind from the financial landscape. We’ll study how, through inclusivity, we can transform financial systems from exclusive clubs to open platforms, where everyone can share the benefits. And we’ll see how, by embracing inclusivity, we contribute to building a more equitable and prosperous world for all.