Research by the winners of the 2024 Nobel prize in Economics has pushed global wealth inequality into the spotlight, but the topic has always been at the heart of the mission of the University of Luxembourg’s ADA Chair in Financial Law (Inclusive Finance) with its partners, Luxembourgish organisation ADA (Appui au Development Autonome), and the Luxembourg Ministry of Foreign and European Affairs.
A decade of dedication
According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.”
The University of Luxembourg has long been a powerful motor for promoting financial inclusion far beyond the confines of the Grand-Duchy. The ADA Chair, held by Financial Law Professor Dirk Zetzsche, celebrated its 10th anniversary on 16 October 2024, reflecting on past accomplishments and research output, while looking towards a future where financial inclusion drives economic growth and contributes to accomplishing sustainable development goals.
-
From left to right: Stéphanie Obertin, Minister for Research and Higher Education, Xavier, Bettel, Minister for Development Cooperation and Humanitarian Affairs, Tom Pfeiffer, Chairman of InFiNe, Patrick Losch, Chairman of ADA and Marie-Hélène Jobin, Vice Rector for Partnerships and International Relations. Photo Credit: © Simon Piraux
-
(Left to right) Chairholder Prof. Dirk Zetzsche, H.R.H. The Grand Duchess of Luxembourg and Vice-Rector Marie-Hélène Jobin attend the anniversary celebration. Photo Credit: © Maison du Grand-Duc / Kary Barthelmey
-
HRH The Grand Duchess of Luxembourg addresses the audience. Photo Credit: © Maison du Grand-Duc / Kary Barthelmey
-
Prof. Katalin Ligeti, Dean of the Faculty of Law, Economics and Finance introduces the ADA Chair. Photo Credit: © Maison du Grand-Duc / Kary Barthelmey
Strength in numbers
What do a banker from Pakistan, an entrepreneur from Zimbabwe, an NGO Director from Benin, and a finance professional from Cambodia have in common? They have all been positively impacted by the Chair’s flagship programme, the Certificate in Law and Regulation of Inclusive Finance. Each year, around 25 professionals from various developing countries travel to Luxembourg for a 10-day course which introduces them to the principles and tools for tackling the regulatory and legal challenges of financial inclusion.
Programme participants return home armed with essential knowledge as well as a strong network of contacts from Luxembourg and abroad. Many alumni now hold high positions at central banks, national regulators or have founded and grown their own companies and NGOs. For some participants, the certificate has come full circle; in 2023, Jorge Moncayo Lara (alumnus, 2018) now Technical General Intendent (equivalent to Chief Operating Officer) at the Ecuadorian regulator in charge, e.g. of credit associations, came back to teach in the course.
The 2024 Certificate in Law and Regulation of Inclusive Finance participants. Photo Credit: uni.lu
Financial Inclusion “Made in Luxembourg”
According to the Chairholder, Prof. Zetzsche, many programme participants look to Luxembourg as a role model, experiencing how life could be organised in a stable, democratic, financial services-oriented environment.
Luxembourg is Europe’s leading financial centre, home to over 5 billion euros of assets under management as well as financial institutions such as the European Investment Bank, the European Investment Fund and the European Stability Mechanism. Through the ADA Chair, talent, expertise and potential concentrated within Luxembourg can reach even the farthest corners of the world, helping populations access the financial tools necessary for development and overcoming wealth inequality.
International visibility
Prof. Zetzsche has worked to bring the Chair visibility at the highest levels, such as through involvement in COP27 & COP28, with a planned presence at COP29. In 2023, Professor Zetsche was invited to give a speech at the United Nations about using Financial Inclusion as a tool in the fight against inequalities. Most recently, Prof. Zetzsche has accepted an appointment within the International Monetary Fund’s Financial Access Survey Advisory Group to develop a way of measuring the participation of women in inclusive finance with a view towards addressing gender equality in the field.