Risky Business in Bougainville: Implementing Microfinance in Post-Conflict Environments
This paper explores the issues entailing investments in microfinance operations in post conflict environments, with a particular focus on Bougainville. The paper:
- Introduces the use of development aid in such environments and their utilizations.
- Explains the context in which Bougainville Microfinance Scheme (BMFS) operates and the issues pertaining to it.
The second section pertains to the debate on commercialization involving the subsidy dependence and sufficiency level of the MFIs.
In the third section, the paper discusses the issues and constraints of BMFS operating in one of the post conflict environments (PCEs). It includes the feasibility of commercialization in PCE area.
The fourth section deals with the history of conflict in Bougainville and provides an understanding of the different microfinance institutions in the area.
The key issues that it identifies in the future operations of BMFS are in the following areas:
- Client demand;
- Institutional performance;
- Weak social capital;
- Microenterprise development;
- The future strengths;
- Limited size of the microfinance market.
The paper concludes on the note that:
- BMFS is now subjected to the weak economy and massive social problems post conflict;
- The commercialization of the non-commercial operations will lead to furtherance of complications;
- Therefore BMFS should take into consideration these challenges and research indepth before commercialization of the same.
