Conflict leaves loss and devastation in its wake. After a conflict, people’s lives are changed considerably. Many people have lost their families, homes and jobs. Women often face an additional challenge. Many have lost their husbands, and are now forced to make a living for themselves and their children. Others may have left for refugee camps abroad. When refugees return home, they may experience difficulties in reintegrating into their communities.

There is a strong need for persons affected by war to rebuild their lives, become self-reliant and reintegrate in their communities.

Microfinance can contribute to supporting income-generating activities, rebuilding societies and creating new hope for a better future. Given the opportunity, people with an entrepreneurial spirit and relevant skills can create employment for themselves and others. This has great potential for promoting development and building peace.

Relief organisations and development agencies have a joint responsibility in this regard. Relief actors are the first to provide support to conflict-affected populations but, given their mandate, they are unable to remain long enough to put into place permanent mechanisms to rebuild communities. They can, however, lay the groundwork for development, which will benefit people for years after the relief operations are completed. To bridge the gap between relief and development, development agencies should work together with humanitarian organisations and build on their foundations.

Microfinance offers a suitable field for cooperation between the two. 

Relevant publications

“Microfinance in Post-Conflict Countries. Towards Guiding Principles for Action”, (background paper of a workshop held in September 1999), prepared by Geetha Nagarajan.

Microfinance in post-conflict countries: Towards a Common Framework for Action (Final report of the workshop)

Training Manual: “Introduction to Microfinance in Conflict-Affected Communities”.

For more information, please contact Baldwin Beenakkers.