Reducing Poverty throught Microfinance. The Albanian Case

AuthorZoica Zharkalli (Kokaveshi)
ISSN 2410-759X
Acces online at
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Tirana-Albania Vol. 1 No. 2
September 2015
Reducing Poverty throught Microfinance. The Albanian Case
Zoica Zharkalli (Kokaveshi)
Microfinance is called often as “poor people’s bank” as it’s proved to be an enterprise able
to reduce poverty. Poor people does not have the right to choose. They face every day the
absence of food, security, education, health care, ect, and are even more vulnerable to
natural disasters, illness and economic crises. Poverty is a result of economic, politic and
social processes. Is lack of physical assets, working possibilities, acess to financial market
ect. It is a result of public policies failure on supporting these categories. In the
globalisation erea we are facing two development challanges that are to generate
economic growth and reduce poverty.
In this paper, it is analized the use of microfinance as an instrument to reduce poverty in
Albanian situation. Through these 25 years of decentralisation, Albania is one of the
countries where the economy is characterized mostly by informal sectors as many of
active enterprises are not registered. Privat sector has evolved in a non favorable
enviroment facing continuously difficultiess with corruption, poor infrastructure and
recently, lack of external efective funding.
Commercial banks does not operate in Albanian rural area as the costs of transactions
and risks are very hight and there is no information for potential clients or possibilities
for borrowing in these areas. All this cause underfunding for rural sector and has slowed
down the development of rural financial intermediation services. As a result, microfinance
institutions are becaming important development instrument for rural area.
The main objective of this paper is to understand how can be used microfinance to
reduce poverty in Albania taking into consideration the advantages of choosing these
services against of commercial credit, the conditions that support the increasing market
share of these institutions and the effects caused in the economy. Another important
part will be analysing the changing perspectives of using microfinance to guarantee
development. Recently, development programs are emphasizing the relevance of
supporting poor people with credits than donations. At the same time, the objectives of
these paper are to highlight the problems faced by microfinance institutions in Albania
and the importance of control and regulation of these institutions.
Keywords: microfinance, poverty, development, financial services.
Të varfërit jetojnë pa patur as liritë më minimale të të vepruarit dhe të zgjedhjes. Ata
perballen me mungesa të mëdha në ushqim, strehim, shëndet dhe edukim. Janë më
vulnerabël ndaj sëmundjeve, fatkeqësive natyrore, dhunës dhe krizave ekonomike.
Varfëria është rezultat i proçeseve ekonomike, politike dhe sociale. Ështe rezultat i
mungesës së aseteve më jetike, i mundësive të pakëta për punësim, i mungesës së
aksesit në tregjet financiare. Ështe rezultat i dështimit të politikave publike, i dështimit
të shtetit në mbështetjen e kësaj kategorie, dështimit të institucioneve ligjore dhe

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