On Thursday, January 18th, Dr. Zaki Khoury, a Principal Development Specialist in the Crisis Mitigation and Recovery Practice, joined Mayada El-Zoghbi from Banyan Global, and Mercedes Fitchett from CHF International, for a roundtable discussion adressing "Microfinance and Economic Recovery in Crisis Countries."

The focus of Dr. Khoury’s presentation was on two important mechanisms that are currently utilized to achieve economic recovery in Iraq: Microfinance and Short Term Employment. Dr. Khoury discussed the challenges facing the delivery of microfinance services in Iraq, including the increased security concerns, the dependency culture that evolved in Iraq since the Gulf war, and the lack of economic opportunities due to a monopolization of the Iraqi market by a few number of families. With on-going high levels of unemployment (50-70%), the USAID/OTI-funded Iraq Transitional Initiative project that DAI implemented during the period March 03 – July 06, was presented as an illustrative case to highlight the importance of providing short-term gainful employment while achieving visible improvement in local communities.

Dr. Khoury analyzed some of the lessons learned, including the focus on private sector led growth and job creation for the long term. For investors and entrepreneurs to be willing to invest and generate opportunities for economic activities, security at present and expectations of future security are necessary to be established. He also advocated a new sequencing model in which we start a wider range of activities early in the reconstruction effort, phasing out short-term activities (security and Humanitarian assistance), and continuing long-term activities such as economic recovery, institutions and capacity building. Finally, Dr. Khoury stressed the importance of utilizing the early days of reconstruction efforts where we would usually have a window of opportunity to undertake politically difficult reforms, strategies and institutional changes.

A summary of Dr. Zaki Khoury’s discussion points is available here.