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Assessing Microfinance: The Bosnia and Herzegovina Case

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Author Info

  • AnneWelle-Strand

    (Norwegian School of Management BI, Norway)

  • Kristian Kjollesdal

    (Comte Analysebyri, Norway)

  • Nick Sitter

    (Norwegian School of Management BI, Norway
    Central European University, Hungary)

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    Abstract

    Microfinance is often hailed both as a tool for fighting poverty and as a tool for post-conflict reconciliation. This paper explores the use of microfinance in post-civil war Bosnia and Herzegovina, assessing its results in terms of both goals. As it combined high unemployment with a highly educated population in an institutionally open context, Bosnia and Herzegovina provides a crucial test of the effect of microfinance. If unambiguous signs of success cannot be found in a case with such favorable conditions, this would raise serious questions about the potential benefits of microfinance. The paper draws together evidence from a series of independent reviews of microfinance in Bosnia and Herzegovina, to assess its impact in terms of economic performance, the economic system, social welfare and post-conflict integration. Based on this case study, microfinance appears a better tool for dealing with poverty than with social integration or institution building.

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    Bibliographic Info

    Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

    Volume (Year): 8 (2010)
    Issue (Month): 2 ()
    Pages: 145-166

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    Handle: RePEc:mgt:youmgt:v:8:y:2010:i:2:p:145-165

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    Related research

    Keywords: micro finance; post-conflict; poverty alleviation; economic development; Bosnia and Herzegovina;

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    References

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    1. Ke Chen Chen & Mali Chivakul, 2008. "What Drives Household Borrowing and Credit Constraints? Evidence From Bosnia and Herzegovina," IMF Working Papers 08/202, International Monetary Fund.
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    Cited by:
    1. Pawel Galinski, 2013. "Activity of Microfinance Institutions in the Period of the Global Financial Crisis," Equilibrium, Uniwersytet Mikolaja Kopernika, vol. 8, pages 91-105.

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