Reducing Poverty throught Microfinance. The Albanian Case

• Author: Zoica Zharkalli (Kokaveshi)
• Pages: 348-355

ISSN 2410-759X

Acces online at www.iipccl.org

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Tirana-Albania Vol. 1 No. 2

September 2015

348

Reducing Poverty throught Microfinance. The Albanian Case

Zoica Zharkalli (Kokaveshi)

Abstract

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.

Hyrje

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

korrupsionit.