Greetings to all,

This is a comment to Howard's notes that microfinance is being used for commercial purposes by financial institutions active in post-war regions . Indeed, that's the case. This commecialization of microfinance is often encouraged by some international organizations, such as the World Bank, as a sign that these financial institutions can offer microfinance on a long-term basis, thereby giving an exit strategy to developmental institutions. However, immediately in the aftermath of wars, commercial as well as socially oriented applications of microfinance tend to be applied (and I agree with William that microfinance has many benefits in such settings). Social applications are more focused on targeting specific ethnic groups, refugees, returnees, demobilized soldiers, etc. These two distinct applications of microfinance in post-war regions are supported by a very different aggregation of organizations (ranging from developmental banks, commercial banks, NGOs, etc). Managing the application of microfinance in post-war regions requires an understanding of the institutions that support the sector. Who shapes the policy, why and how, are key issues to explore if microfinance is to be enhanced as a tool of peacebuilding and conflict resolution.