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. Microfinance at EU level - Puzzles and Questions. Puzzles - PowerPoint PPT PresentationTRANSCRIPT
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• 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?
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
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
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
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
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
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
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
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
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