STEPHEN SETS UP FUTURE OPPORTUNITIES COMMISSION

2.52.33pm GMT Mon 27th Nov 2006

Scottish Lib Dem leader Nicol Stephen has launched a major policy initiative to tackle poverty and increase opportunity across Scotland.

Mr Stephen will announce a new Liberal Democrat Future Opportunities Commission, which will report back in time for next year's Scottish Parliament elections.

And he is looking to Nobel Prize winner Mohammed Yunus' and his world famous microfinance scheme to transform Scotland's approach to poverty and opportunity.

The Commission, which will be chaired by Ross Finnie MSP, will be tasked with adapting the policies of Mr Yunus' Grameen Bank to work effectively in Scotland.

Speaking at a meeting of Edinburgh Liberal Democrats, Mr Stephen will say:

"I believe this radical approach can be used to tackle poverty right across Scotland.

"I want to see the ideas pioneered by the Grameen Bank supported in Scotland. We need to do more to encourage enterprise and opportunity in our deprived communities, giving people a hand up - not a hand out.

That is why I have written to Mohammed Yunus, the founder of Grameen Bank, asking for his support in developing this initiative. His ideas, pioneered in Bangladesh, have already been implemented successfully in areas such as New York, Dallas and the Far East.

"Liberal Democrats passionately believe that we need to do more to release the potential of each individual. Education is vital - but so to is enterprise and opportunity. The Grameen Bank, run by Mohammed Yunus, has proved that funding enterprise in deprived communities is one of the best ways to tackle poverty.

"In Scotland in government the Liberal Democrats have used that method to put real money in the pockets of some of the poorest people in society. Central heating schemes to give the disadvantaged warmer homes, free care for the elderly, free bus travel and grants for the poorest students. These are hugely worthwhile but significant disadvantage still exists. In the future I want to see initiatives which give individuals and communities the ability to change their lives forever.

"One of the most innovative ways to unlock the potential of individuals is microfinance. Across the world microfinance is one of the most effective and flexible methods of tackling poverty. Microfinance is sustainable and can be implemented on a scale to make a real difference to communities blighted by a lack of opportunity.

"Microfinance works by making small loans to people who have no collateral to help them set up their own businesses. Last week Zinedine Zidane visited Bangladesh. He met a woman whose life was transformed from begging in the gutter to running her own business. And what made this possible? A loan from the Grameen Bank for £3.70.

"What works in the Developing World is also starting to work in developed nations. The Grameen Bank approach is now delivering results right around the world - but not yet anywhere in Europe. I want Scotland to be the first nation in Europe to pioneer this new approach.

"Nobody would suggest that the levels of poverty which we see in Bangladesh are in any way comparable to what we have here in Scotland. However, the lesson that freeing the potential of the individual is the surest way to eradicate poverty is, I believe, a universal one.

"Mohammed Yunus, once said that the greatest thing he had learnt in his experience was that each human being had unlimited potential but we have yet to create a society which allows us to unleash that potential. I want Scotland to go further than we have ever gone before to unleash the potential of every individual - regardless of the circumstances they were born into.

"I am determined that if I am First Minister after next year's election we will tackle some of Scotland's most deep-seated problems. That is why I have asked Ross Finnie to chair a Commission to look at innovations and strategies which will unlock Scotland's future potential.

"I want the Commission to look for new and exciting ideas. I want them to talk to people like Mohammed Yunus with experience of creating and working on dynamic anti-poverty initiatives.

"Whether it is on microfinance or any other initiative the Commission's work will put opportunity within the reach of every Scot. When I speak of a dynamic economy in Scotland, I mean an economy and society which everyone can be part of - 100 per cent of the people in 100 per cent of the places, 100 per cent of the time.

"The Commission must make sure that every project and initiative favours the community and doesn't feed the desires of the professionals involved for even more projects and initiatives. We need a challenging new agenda - and some of the approaches of the past may not be right for the future.

"Since 1999 we have made great strides in tackling poverty in Scotland. However, we still have much to do if we are to fulfil the goal of Liberal Democrats to create a society in which nobody is enslaved by poverty, conformity or ignorance."