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

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.