Microfinance and Tsunami Recovery
Microfinance is not ...



The initial flow of massive amounts of relief funds for humanitarian purposes was, in quite a few cases, delivered or disbursed through MFIs, particularly in Indonesia.

MFIs were seen to have extensive support networks in the affected communities, clients and client networks among the most vulnerable communities, and also possess resources and experiences in reaching out to such communities.

But the MFIs made it clear that they should stay within their mandates and client services, and not be involved in relief and charity activities. MFIs also clarified that the microfinance is not the answer to all financial problems and needs of the affected communities - and needs to be only a part of a larger package of financial relief and other services for the communities.


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Hari Srinivas - hsrinivas@gdrc.org
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