Financing Low-Income Borrowers in the Caribbean: Experiences from the Barbadian Microfinance Sector

Abstract

As an effective financial tool for socio-economic development, microfinance has gained prominence in the policy debates on poverty and the Millennium Development Goals (MDGs). Given the importance of microfinance to small business, agriculture, health and other development indicators, microcredit is crucial to poverty alleviation, which is a key feature of many Latin American and Caribbean government agendas. This article highlights how Caribbean governments have incorporated microfinance in their economic development efforts, reporting findings from our recent research conducted in Barbados. Drawing on contemporary practices, we examine the challenges faced by the Caribbean microfinance sector, with an emphasis on the Barbadian context.