Microfinance, Youth & Conflict: West Bank Study

This study on microfinance, youth and conflict in the West Bank aims to collect information on the current practices and opportunities for microfinance with youth in conflict-affected areas.The paper aims to

• Examine the impact of conflict on the employment for youth, the supply and demand for finance, and the roles of microfinance institutions (MFIs), youth-serving organizations (YSOs), families and other entities in meeting the demand;
• Procure the following information about working with youth in conflict-affected areas:
  • Suitability and type of enterprise development programs,
  • Characteristics of work,
  • Suitability of various types of financial services.

The paper lists the following findings of the study:

• Palestinian youth are important contributors to the economic survival of their families;
• The livelihood strategy they use most is short-term informal sector work;
• Self-employment provides small earnings and has certain advantages;
• The supply of microfinance to youth is modest and based on the type of business;
• On the demand side, there is a need for:
  • Start-up capital,
  • Business development services,
  • MFIs and YSOs to meet this demand;
• Gender, conflict and education impact young people's decision-making;
• Microfinance has not yet succeeded in reaching the youth.

The study concludes by recommending:

• Demand studies and the development of youth-friendly products and services;
• Small, short-term loans and educational loans;
• Pre-microfinance training activities;
• Development of a regulatory environment conducive for microfinance;
• Non-financial activities to engage youth.