Assessing Microfinance: The Bosnia and Herzegovina Case
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.
Volume (Year): 8 (2010)
Issue (Month): 2 ()
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- 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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