Microfinance in Post-Disaster and Post-Conflict Situations: Turning Victims into Shareholders
Explores the possible role of MFIs and member-owned institutions in post-disaster reconstruction
This article studies the role of member-owned institutions (MOIs) in the provision of the reparations for victims of human rights abuses or reconstruction in post-conflict and post-disaster situations. It discusses:
- The role of microfinance institutions (MFIs) in post-conflict or post-disaster situations;
- The challenge of sustainable impact of reparation payments for civil rights abuses;
- Framework for reparation payments;
- The transition of non-government organizations (NGOs) to member-owned local financial institutions;
- Linkages between formal and informal finance.
The article concludes that:
- Grants usually awarded for reconstruction in post-conflict areas or for reparation payments in post-disaster areas could be best turned into equity and deposits to foster MOIs;
- NGOs and MFIs could be instrumental in using reparation payments to promote the establishment, growth, and development of sustainable local financial institutions co-owned by recipients of reparation payments.
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