Paper

Microcredit in the Caribbean Experiences & Best Practices (Executive Summary)

Assessing the microfinance environment to identify best practices
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This paper states that the microfinance movement has spread throughout the developing and the developed world as a weapon to fight poverty. The study attempts to identify the procedures for:

  • The restructuring of the microfinance sector in the Caribbean;
  • The creation of new and efficient microfinance institutions (MFIs).

The study operated on two levels:

  • The first level - assessment of organizational as well as staff characteristics of the MFI;
  • The second level - study of the MFI's clients.

The paper lists the important findings of the study:

  • Lack of a suitable regulatory framework severely hampers the growth and success of MFIs;
  • Concentration on small enterprises rather that micro enterprises retards the poverty alleviation potential of MFIs;
  • Lack of human capital and organizational structure does not allow MFIs to exploit the full potential of microfinance;
  • Information dissemination is very low;
  • Cultural elements permeate the microfinance system in the Caribbean.

The author points out that the research has raised many issues that need to be addressed:

  • Systems to be established to identify the target group of the MFIs;
  • Finance group to be investigated to ensure sufficient demand of services;
  • Institutional need to be understood to restructure the system for more productive use.

About this Publication

By Lashely, J., Lord, K.
Published