microfinance as a european policy issue

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Microfinance as a European policy issue Policy images and venues Michael Unterberg, research assistant, EVERS & JUNG GmbH 5th EMN annual conference, 8–10 september, 2008, Nice.

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Microfinance as a European policy issue. Policy images and venues Michael Unterberg, research assistant, EVERS & JUNG GmbH 5th EMN annual conference, 8–10 september, 2008, Nice. Microfinance at EU level - Puzzles and Questions. Puzzles - PowerPoint PPT Presentation

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Page 1: Microfinance as a European policy issue

Microfinance as a European policy issue

Policy images and venues

Michael Unterberg, research assistant, EVERS & JUNG GmbH

5th EMN annual conference, 8–10 september, 2008, Nice.

Page 2: Microfinance as a European policy issue

Microfinance at EU level - Puzzles and Questions

Puzzles• Uptake of a grassroots instrument for fighting poverty as

a European policy issue • Gap between attention towards MF at EU level and the

development of the sector in Europe

Questions• What were the main drivers of the policy initiation

process of MF as a policy issue in the EU? • What was the role of the institutional framework of the

EU in this process?• How influential were non-state actors?

Page 3: Microfinance as a European policy issue

Agenda setting in the EU

Important aspects:• Fragmentation of decision making• Central role of EU Commission (DGs)• Multiple entry points for influence

Two routes of Agenda-Setting in the EU (Princen/Rhinard 2006):

• High politics route: Top-down dynamics• Low politics route: Bottom-up dynamics

Page 4: Microfinance as a European policy issue

A framework for analysis

Kingdon (1984/1995): • Multiple streams: problems, policies and politics• Coupling and policy windowsBaumgartner and Jones (1993): • Policy images and venues• Venue shopping

Actors:• Policy entrepreneurs• Non-state actors and state actors• Policy communities and networks

Page 5: Microfinance as a European policy issue

MF in Europe as policy issueProblem structure:• Market failure of credit allocation to specific target

groups• New forms of self-employment• Social exclusion• Low levels of entrepreneurship

Policy implications: • Depends on target group and approach chosen• Social, employment and economic policy + financial

services regulation

Many options to build policy images of MF in Europe

Page 6: Microfinance as a European policy issue

Issue initiation (1998-2002)

Bottom-up impulses:• Commission funded studies and cooperation projects • First framing of policy images• Formation of a European MF community

Top-down impulses• Lisbon strategy as main driver• Recommendations of the Council in 2000• Inclusion of MF-window into MAP (2000-2005)

High politics route with restricted involvement of non-state actors

Page 7: Microfinance as a European policy issue

Issue specification (2002-2005) I

MF as social/employment policy • Venue with favourable institutional conditions (OMC)• Network building (EMN) supported by DG EMPL • Direct involvement of MF community in framing the

policy image of MF as a tool to fight social exclusion

MF as enterprise policy:• Less favourable institutional conditions• Influence of non-state actors mainly through technical

expertise in working groups• MF community successful in framing policy image to

include support for excluded target groups

Page 8: Microfinance as a European policy issue

Issue specification (2002-2005) II

Regional/structural policy:• Least favourable institutional conditions• MF in context of restructuring structural funds towards

financial engineering and risk financing • Lowest influence level of non-state actors• Policy image of MF dominated by technical aspects and

experience of funding MF in Eastern Europe

Low politics route with strong influence of MF community, especially in framing policy images

Page 9: Microfinance as a European policy issue

Issue expansion (2003-2006)

Top-down dynamics:• New political momentum through Council

recommendations in 2003• New DGs get involved with MF (DG EcoFin; DG Market)• EU Parliament pushes for the integration of MF in the

„Integrated Guidelines for Growth and Jobs“

Bottom-up dynamics:• First European Microfinance Conference in Brussels

High politics route in expanding the issue of MF over EU institutions

Page 10: Microfinance as a European policy issue

Issue entrance (2006-)

Announcement of European action plan on MF as entrance of MF on the institutional agenda of the EU.

Central dynamics:• ‚Softening up‘ of EU institutions through venue shopping • Renewed Lisbon strategy as policy window for coupling

MF to policy goals • Important role of EMN with M. Nowak as policy

entrepreneur

Mixture of high and low politics route, with selective influence of non-state actors

Page 11: Microfinance as a European policy issue

Conclusion

• Findings underline the important role of European MF community in shaping the process of agenda setting

• Strongest influence of non-state actors during the phase of issue specification, due to knowledge ressources and technical expertise

• Importance of institutional framework: Availability of accessible policy venues, mostly due to OMC

• Lisbon strategy served as policy window for MF

Page 12: Microfinance as a European policy issue

Thank You!

Michael Unterberg

[email protected]