Microfinance Strategies for Early Recovery

23-24 May 2024 -  Istanbul, Türkiye

LUGARIT participates in the "Economic Empowerment and Sustainability Conference in Syria," held in Istanbul, Türkiye. The event, themed "Empowerment: The Foundation of Stability," brought together humanitarian organizations, international development experts, and policymakers to address the urgent need for economic and social empowerment in northern Syria amidst its severe humanitarian crisis.

Conference Overview

The conference aimed to initiate an active dialogue and foster positive interactions to improve living conditions and the economic and social future of the region's population. Participants focused on practical steps to achieve comprehensive empowerment, with an emphasis on sustainable economic development principles. The conference also highlighted the role of the private sector and potential partnerships with other sectors to build a common vision for northern Syria's development.

LUGARIT’s Presentation

Omar Abdulaziz Hallaj, a partner at LUGARIT, delivered a presentation during the specialized workshop titled "Microfinance, Investment Funds, and Solidarity Financing as Tools for Economic Empowerment." His presentation, "Microfinance for Early Recovery," underscored the critical role of microfinance in fostering economic resilience and sustainability in post-conflict regions.

Mr. Hallaj emphasized the limitations of large-scale investments in northern Syria due to excessive compliance with sanctions and the preference of large investors for profitable sectors that often privatize public services. He argued that microfinance offers a viable alternative by quickly generating employment opportunities, balancing inflation, and leveraging local resources and initiatives.

Key Points from Mr. Hallaj's Presentation:

• Necessity of Microfinance:

  • Microfinance is crucial in areas where 75-80% of job opportunities are within small and medium-sized enterprises.

  • Microfinance is also essential for leveraging the role of women in the work force. 

  • It provides rapid responses to local needs with flexible criteria, encouraging self-initiative and maximizing the use of available local resources.

• Types of Microfinance:

  • Various forms, including benevolent loans, small credit associations, Islamic microfinance, and conventional microfinance, cater to different needs and contexts.

• Challenges and Risks:

  • Addressed ethical risks associated with microloans, such as “moral hazard” or the misconception that loans do not require repayment, which can damage the lending market.

  • Highlighted the importance of sector specific management concerns, such as the and the strict follow up of loan payments and the need for credit coordination offices to mitigate over-indebtedness.

• Long-Term Vision:

  • Advocated for a phased approach to introducing deposit and insurance services, beginning with profitable markets to ensure financial sustainability.

  • Proposed innovative financial services like mobile money transfers and virtual banking to support economic development.

Conference Themes and Workshops

The conference covered multiple themes, including inspiring success stories from post-crisis countries, promoting economic recovery, and exploring strategic partnerships for sustainable development. Specialized workshops discussed topics such as financial value chains, healthcare system renewal, and the importance of the agricultural sector in achieving food security and economic development.

The Economic Empowerment and Sustainability Conference in Syria served as a platform for discussing new humanitarian intervention patterns and opportunities for empowering the population. LUGARIT's participation, through Mr. Hallaj's insightful presentation, contributed to the dialogue on achieving stability and sustainability in the region. The conference underscored the role of economic and social empowerment as the cornerstone of development, aiming to bring about tangible improvements in the lives of Syrians.

Header Photo

Vendor counting cash in a market place.  Syria. Photo © hanohiki via ShutterStock.  Link > 

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