Prospects Of Microfinance Development In Uzbekistan: Issues And Solutions

  • Dildora Tadjibaeva
Keywords: Microfinance, Development Analysis, Urbanization Process

Abstract

Rendering the microfinance services (in the form of microcredits, microloans, microleasing and others) to the poor households, micro- and small businesses is still an important tool to reduce poverty as well as create more income generation and employment opportunities in countries with the developing and/or transition economies as Uzbekistan. Due to efforts of the Uzbek Government and international donors for the last 15 years, the microfinance sector could become a separate financial segment and address above-mentioned needs in progressive manner. On the other hand, the sector has relatively small share in the composition of financial mediation and its further development requires also consideration of such socio-economic and administrative factors as urbanization process along with uneven development of microfinance sector, acceleration of workforce growth due to increasing youth, the need for government’s transition away from costly poverty control methods, etc. Based on the sector development analysis by concurrent reviewing of these factors the paper reveals the lack of diversified sources of resources for microfinance institutions (MFIs), stiffness of regulatory framework, the need for improving the sector infrastructure in terms of covering credit risks, building up sector’s capacity in covering operational risks. Beside quantitative indicators for prospective development of the sector the paper also discusses qualitative areas to be stressed on to fill the identified gaps.

References

“Family Assets Mobilization Survey: 2009”, 2010. Center for Economic Research, Economic Review Journal, 3rd ed. p XX

Uzbekistan 2009 Microfinance Analysis and Benchmarking Report, 2011. MIX Market - http://www.themix.org/publications/mix-microfinance-world

Beck, T., Demirguc-Kunt, A. Martinez Peria, M., 2006. Banking Services for Everyone? Barriers to Bank Access and Use around the World, World Bank Policy Research Working Paper 4079.

Information analytical review “Uzbekistan Economy”, 2010, Center for Economic Research, pXX

The Cabinet of Ministers of Uzbekistan, 2009. The Resolution #68 on “Additional Measures for Improvement of Administrative and Territorial System of Populated Areas”, art. XXX

UN Secretary General, 2010, Report on Role of Microcredit and Microfinance in Elimination of Poverty at 65th session of UN GA,

Published
2011-10-07
Section
Articles