Is Combined Microfinance an Instrument to Enhance Sustainable Pro-Poor Public Policy Outcomes?
The paper analyzes how combined microfinance (CMF) can both leverage and challenge policy outcomes. It reviews two complementary questions in this regard: the possible effects of CMF on public policy and the manner in which public policy influences CMF outcomes.
The paper employs a literature review, findings from qualitative assessments and a case study in Barbados to highlight the increased challenging environment in supervising, regulating and promoting CMF. Some of the key recommendations of the paper are:
- Preparation of regulation should be in line with organizational capacity to ensure proper monitoring;
- Promotion of CMF should accompany smart ways of subsidizing by policy makers;
- Pro poor and gender specific policy measures need to be put in place to accompany MFIs engaging in CMF.
The paper calls for a more ambitious research agenda. Future research should support policy makers in developing monitoring and oversight mechanisms which take into account performance indicators dealing with loan, savings and insurance products.
