The Lessons and Potential for Sustainability and Outreach of Microfinance Institutions in Papua New Guinea and Other Pacific Island Countries

This paper discusses the challenge of providing microfinancial services to a significant proportion of poor in the Pacific Island region:

• Papua New Guinea's (PNG's) approximately four million low income population;
• Other Pacific Island Countries' (PICs') two million low income population.

The author states that there are five major constraints on the implementation of microfinance programs in this region:

• High cost of accessibility because of inadequate infrastructure;
• Cultural limitations on the participation of women;
• Direct government involvement leading to unhealthy practices;
• Need for capacity building and appropriate training;
• Pressure to expand too soon leading to a neglect of prudent planning.

Finally, the author suggests that the creation of a forum which can promote a training and research centre, major conferences and workshops could ensure continuous dialogue and exposure, and boost microfinance in the region.