Micro-Credit in Transition Economies

Micro-credit was originally developed as a specific tool for economic and social development in the poor countries of Asia and South America. In the last two decades, however, it has found an application in the countries in transition, and in some developed regions as well. The objectives of micro-credit include poverty alleviation, the efficient use of limited capital funds, the development and encouragement of entrepreneurship, and employment creation. It is also relevant in terms of addressing social issues: for example, through support to disadvantaged groups in society. These combined applications have ensured that micro-credit is now a widespread practice throughout the underdeveloped countries and regions.