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Microfinance institution activities in Central Asia: a case study of Tajikistan and Uzbekistan

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  • Manijeh Sabi

Abstract

This article compares key issues concerning the structure of microfinance institutions (MFIs) and the nature of competition in Tajikistan and Uzbekistan. Employing both qualitative and quantitative measures, the field research indicates that MFIs in Tajikistan and Uzbekistan do not have the traditional characteristics of microfinance business. Although both countries are at the pre-competitive stage, the qualitative research indicates that urban areas in Tajikistan are approaching a competitive edge. The research demonstrates that MFIs in these countries do not require their clients to give up membership of other MFIs, thus increasing the probability of cross-indebtedness. Moreover, if a client fails to repay a loan from one MFI, there is a high probability that this person will join another MFI. Consequently, both countries may face cross-indebtedness even in the absence of intensive competition.

Suggested Citation

  • Manijeh Sabi, 2013. "Microfinance institution activities in Central Asia: a case study of Tajikistan and Uzbekistan," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 253-266, June.
    • Handle: RePEc:taf:pocoec:v:25:y:2013:i:2:p:253-266
    DOI: 10.1080/14631377.2013.787757
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