Microfinance Research in Conflict Environments: State of the Art and the Road Forward
This brief note, based on a substantial literature review and field experiences, is a summary of the major lessons emerging from research to date on microfinance in conflict settings to identify areas for further examination to better understand and expand the frontier of microfinance in conflict situations.
Many lessons have emerged and have been disseminated, yet a disconnect remains between these lessons and current practices. In addition, several lessons pertain only to post-conflict settings with little relevance to fragile areas amid conflict and/or that are facing the possibility of a new conflict or the recurrence of a previous conflict.
There is a need to offer improved guidance on microfinance in conflict areas in order to better analyze various types of conflict settings. In addition, further research on the following topics could help practitioners in starting, designing and implementing microfinance activities in various conflict settings:
- effects of sequencing and combining microfinance with other services
- types of institutions for implementation
- client targeting and market assessment
- provision of products other than micro loans
- product standardization and tailoring
- costs
- operational guidelines
- performance benchmarks