Implementing Effective Partnerships Between MFIs and Financial Institutions: The Case of France and Europe

This paper is a step towards changing the mindset and strengthening the capacity of financial institutions, governments, MFIs, and other stakeholders, to carry out effective microfinance programs in Europe. It draws lessons from the experiences in formation and workings of Association pour le Droit à l’Initiative Economique (Adie) in France and Microfinance Centre for Central and Eastern Europe and the MIS Countries (MFC) and the European Microfinance Network (EMN). It describes how microcredit was introduced in the European Commission, the European Parliament, and the European Investment Bank, and identifies remaining obstacles to the development of microcredit in Europe.

The paper states that the potential market for microfinance in Europe is large but not immediately accessible. The microcredit market requires social marketing in order to be operational. Economic models are very different between Eastern and Western Europe. Conclusions include:

• Microcredit is relevant in developed countries;
• Microcredit helps in the development of microenterprises and employment of vulnerable population groups;
• Microcredit allows citizens to take charge of their destiny;
• Microcredit can contribute to Europe’s social cohesion and dynamism in the face of globalization.