credit programs was not consistent with best practices in microfinance and worked to undermine the development of the microfinance industry. This problem is further complicated by the shifting priorities on policies such as microcredit funding as government regimes change. The development of microfinance in the Caribbean region depends on capitalizing on our many naturally enhancing factors such as well developed transportation and communication networks, political and economic stability, secure financial markets and dense albeit small population sizes. Clarity needs to be established on the goals of microfinance, so as to determine appropriate enabling policies such as a supportive regulatory framework. RECCOMENDATIONS FOR REGULATING THE CARIBBEAN MICROFINANCE SECTOR The starting point in regulating the largely un-regulated microfinance industry in the Caribbean is a comprehensive understanding of the present state of the industry. Equally important is the need for clarity of purpose to be signalled by governments, whose commitment to the effort must remain unfaltering. Achieving these two landmarks will lay the foundation of where we are and where we want to go, so that a plan can then be worked. Microfinance in the Caribbean region is often misunderstood, and is generally taken to mean giving money to the poor. A clear definition of what microfinance is, what it is supposed to achieve and what activities or services fall under the microfinance umbrella must be formulated. These definitions must not be static but must leave room for continuous refinement as microfinancing itself is still evolving globally. A careful study of all institutions that purport to offer microfinance services should be conducted to determine among other things financial sustainability, sources of funding, risk to the
credit programs was not consistent with best practices in microfinance and worked to undermine the development of the microfinance industry. This problem is further complicated by the shifting priorities on policies such as microcredit funding as government regimes change. The development of microfinance in the Caribbean region depends on capitalizing on our many naturally enhancing factors such as well developed transportation and communication networks, political and economic stability, secure financial markets and dense albeit small population sizes. Clarity needs to be established on the goals of microfinance, so as to determine appropriate enabling policies such as a supportive regulatory framework. RECCOMENDATIONS FOR REGULATING THE CARIBBEAN MICROFINANCE SECTOR The starting point in regulating the largely un-regulated microfinance industry in the Caribbean is a comprehensive understanding of the present state of the industry. Equally important is the need for clarity of purpose to be signalled by governments, whose commitment to the effort must remain unfaltering. Achieving these two landmarks will lay the foundation of where we are and where we want to go, so that a plan can then be worked. Microfinance in the Caribbean region is often misunderstood, and is generally taken to mean giving money to the poor. A clear definition of what microfinance is, what it is supposed to achieve and what activities or services fall under the microfinance umbrella must be formulated. These definitions must not be static but must leave room for continuous refinement as microfinancing itself is still evolving globally. A careful study of all institutions that purport to offer microfinance services should be conducted to determine among other things financial sustainability, sources of funding, risk to the
Sherry%20Katwaroo.docx