Paper

Economic Recovery Amid Conflict Case Studies from AMAP KG: A Synthesis Report

Understanding the broader impact of microfinance in conflict settings
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This paper presents case studies that demonstrate the role of microfinance within broader economic recovery efforts after conflict. These studies from Kosovo, Afghanistan, Burundi and Nepal discuss:

  • Addressing short-term impact as well as long-term economic recovery goals;
  • Linking community-based models with financial services;
  • Incorporating conflict mitigation and management within the economic recovery agenda;
  • Integrating gender issues in program design and implementation.

Key lessons derived from the case studies include:

  • Linkages should be intentional and subsidies should be used efficiently for microfinance to have short-term and long-term impact;
  • Community-based models can help an MFI build community trust and increase outreach, but may be expensive;
  • Conflict mitigation and management has ripple effects in the institution's culture and helps staff internalize reconciliation;
  • Modifying design to address recurring conflict has significant impact on client loyalty and long-term growth potential;
  • MFIs are yet to divert energy and resources to complex issues such as gender-based violence in conflict countries.

Finally, the case studies demonstrate some of the possible models that link microfinance within the broader goals and contexts of conflict-affected countries.

About this Publication

By El-Zoghbi, M.
Published