Contextual Factors Determining Poverty Outreach and Financial Performance: The Case of Eastern Europe and Central Asia

Abstract

Microfinance in the Eastern European and Central Asian region¹ emerged after the transition from a centrally planned to a market economy, allowing for the development of private entrepreneurship. At the same time vast unemployment forced many citizens to seek economic opportunities and start their own micro-businesses. Some MFIs in the region — probably the great majority — focused on supporting the emerging micro-business sector. Other MFIs saw themselves as complementary actors in reconstruction efforts and post-conflict situations.