Brief 2- Developing a Post-Conflict Microfinance Industry: The Case of Cambodia

Microfinance in some form has been implemented following conflict in dozens of countries in Africa, Asia, Latin America, and in the former Soviet Bloc. This brief reflects on some of these experiences, providing an industry-wide look at how microfinance emerged in a post-conflict setting. Microfinance has had a relatively short history in Cambodia. Yet, by the end of 2000 after only seven or eight years, the microfinance industry as a whole served some 340,000 clients. Furthermore, several MFIs have achieved financial sustainability in this context. The experience of Cambodia demonstrates that when institutions are well-designed and well-operated, a microfinance industry can flourish and reach the poor in a viable manner even in a society and economy wracked by decades of conflict.

[Adapted from author's abstract]