Microfinance in the ESCWA Region and Proposed Development Strategy

This paper aims at developing a strategy for microfinance in the Economic Commission for Western Asia (ESCWA) region. It does so by:

• Looking at the current scenario of microfinance in the region;
• Providing a background of microfinance (definition, services/products, players, regulation and impact on livelihoods) with a world perspective.

The paper documents the following region specific topics in detail:

• Different players and regulation in the microfinance industry;
• Current market scenario;
• Demand and supply situation;
• Challenges in the industry.

The paper also explains the rationale behind developing a microfinance strategy for the ESCWA region by developing a context for the poor in the region. According to the paper the purpose for development of the microfinance strategy is to address the following:

• Creation of a policy environment conducive to microfinance;
• Development of financial infrastructure;
• Building of viable institutions;
• Provision of support for:
  • Pro-poor innovations,
  • Social intermediation.

Finally, the paper develops a strategy to effectively implement microfinance as a tool to curb poverty.