PUBLICATION: Financial Inclusion in Fragility: Wealth, Saving, Borrowing and Lending among Conflict-Affected Populations in Iraq

Reply on DGroups | 3 comments

July 8, 2021, 11:37 a.m.

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Appreciate these findings and hope this will inform programming in this
area of savings in conflict affected areas.
Regards
Wilson

July 8, 2021, 11:36 a.m.

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Great report and really timely with all the discussion around fragility and
resilience.
Thanks for sharing!
Karri

July 8, 2021, 8:30 a.m.

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Financial Inclusion in Fragility: Wealth, Saving, Borrowing and Lending Among Conflict-Affected Populations in Iraq

PUBLICATION
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Dear all,

The Cash Consortium for Iraq (CCI) has recently concluded a mixed methods study on saving, borrowing and lending behaviour in conflict-affected areas of Iraq to understand the characteristics of these behaviours and the factors influencing them.

Access to credit and savings are critical to a household's resilience to shocks. Socio-economically vulnerable populations in Iraq often bear the brunt of the crises and respond by using accessible financial coping mechanisms. By having access to useful and affordable financial products and services that meet their needs, households can use them to cope with crises and invest in pathways out of poverty The findings of the research show that people in conflict-affected areas of Iraq save and borrow through informal mechanisms, such as saving cash at home or borrowing from trusted community members. Key challenges including lack of trust, accessibility, suitability and desirability will need to be addressed before conflict-affected populations will engage with formal financial institutions. Community-based saving and borrowing schemes can provide an entry-point to bolster the financial system that exists, promote good financial practices and pilot linkages between informal and formal financial service providers.

Key Takeaways:

1. People in conflict-affected areas of Iraq save and borrow through informal mechanisms;

2. Informal mechanisms, such as saving cash at home or borrowing from friends, are currently better suited to their needs and levels of comfort;

3. There are financial and non-financial motivations for lending within the community that allow the financial system to function;

4. Community-based saving and borrowing schemes can be re-established and strengthened as a means of promoting good financial practices;

5. Challenges including lack of trust, accessibility, suitability and desirability issues will need to be addressed before conflict-affected populations will engage with formal financial institutions.

Online publications:
Report - Financial Inclusion in Fragility: Wealth, Saving, Borrowing and Lending among conflict-affected populations in Iraq <https: financial-inclusion-in-fragility-wealth-saving-borrowing-and-lending-in-iraq="" publication="" www.calpnetwork.org="">
Summary Report - Financial Inclusion in Fragility: Wealth, Saving, Borrowing and Lending among conflict-affected populations in Iraq <https: financial-inclusion-in-fragility-wealth-saving-borrowing-and-lending-in-iraq-summary-report="" publication="" www.calpnetwork.org="">

Please find the English and Arabic study briefs attached.

We would like to thank the European Union for the financial support that made this research possible and to SREO consulting for their hard work ensuring its success.

If you have any questions about the research or would like to discuss any area covered further, please don't hesitate to reach out to Virginia Leape, CCI Research, Policy and Advocacy Coordinator, at [Hidden email] <mailto:[Hidden email]>. If your team is conducting related research, we would love to hear from you!

About the Cash Consortium for Iraq (CCI):
The CCI is a multi-donor, multi-program partnership that has implemented over $160,000,000 USD in humanitarian and recovery funding since its formation in 2015. The CCI is comprised of the Danish Refugee Council (DRC), the International Rescue Committee (IRC), the Norwegian Refugee Council (NRC), Oxfam and Mercy Corps as lead. The CCI focuses on harmonized implementation at scale to meet basic needs and support the self-reliance of vulnerable populations with cash- and market-based approaches across the nexus.

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Oxfam works with others to overcome poverty and suffering Oxfam GB is a member of Oxfam International and a company limited by guarantee registered in England No. 612172. Registered office: Oxfam House, John Smith Drive, Cowley, Oxford, OX4 2JY. A registered charity in England and Wales (no 202918) and Scotland (SC 039042)</mailto:[Hidden email]></https:></https:>