Role of microfinance in disaster mitigation

Abstract

Purpose

In the context of the Indian subcontinent, aims to examine the suitability of using microfinance for natural disaster risk reduction at the household and community level, and also of delivering it in the wake of a natural disaster.

Design/methodology/approach

Explains microfinance strategies comprising: diversifying income source; designing new loan products; risk management; sustainability of microfinance institutions post‐disaster; liquidity management post‐disaster, etc.

Findings

States that microfinance should be recognized as one of a series of measures within a disaster risk management strategy. Along with eco‐friendly farming it can help overcome poverty in developing countries.

Originality/value

Probably the first real attempt to explore the importance of microfinance interventions in natural disasters both at the personal level and generally.

Citation

Anand Kumar, T.S. and Newport, J.K. (2005), "Role of microfinance in disaster mitigation", Disaster Prevention and Management, Vol. 14 No. 2, pp. 176-182. https://doi.org/10.1108/09653560510595173