engleski

Impact of Microfinance in Croatia

Microfinance arrived in Croatia in the immediate aftermath of the Yugoslav civil war. Making use of significant international technical and financial support, from 1995 onwards three major microfinance programmes were established in an attempt to quickly facilitate poverty reduction and ‘ bottom-up’ economic and social recovery in the main conflict-affected regions. The microfinance model has now been in Croatia for more than ten years, and so it should now be possible to identify the most important positive and negative impacts and trends associated with its operation. Unlike in neighbouring Bosnia and Herzegovina (see Drezgić et al, this volume), the Croatian microfinance sector has been to date subject to very little serious reflection and formal assessment. Latterly, a few short studies were undertaken (Tsilikounas and Klajić, 2004: Ohmann-Rowe, 2005). However, these studies all effectively started from an implicit assumption that microfinance must by definition produce a positive development impact, and so their focus was mainly on exploring key operational issues (e.g., how to ensure an MFI’ s sustainability, how to extend outreach, how to ensure ‘ best practise’ management techniques are deployed). Such studies are in the main ‘ preaching to the converted’ and are therefore of little value to those exploring the basic link that might, or might not, exist between microfinance and sustainable economic and social development impacts. The chapter is structured as follows. We begin by providing a brief portrait of the microfinance ‘ industry’ in Croatia. We then utilise some standard labour market criteria with which to assess the situation and impact of the three MFIs in Croatia. A conclusion summarises the main points raised

Microfinance, Local Economic Development, Economic Policy, Poverty Reduction

nije evidentirano