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
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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.

About this Publication

By Hudon, M. & Seibel, H.