Challenges of microfinance schemes and conflict transformation in families in Uganda: a case study of Kamuli District 1997-2007

Abstract

The study examined the challenges of Microfinance Schemes and Conflict Transformation in families in Uganda. Having been recognized by the UN in 1997, MFS became a tool to alleviate poverty and to bring about Human Development among the poor people of the world. In Uganda, MFS began in 1990s by the informal sector in order to bring Human Development; and where Human Development has taken place, Conflict Transformation finds its cohort. However, the intricacy involved in turning MFS into profits for savings and investments precipitated the study of this kind. The study was carried out in Kamuli District and the researcher used both qualitative and quantitative design of the research. Three methods were employed during the data collection from respondents. These are; interviews of the respondents, Focused Group Discussions and observation. The information collected was organized according to chapters in order to make a meaningful conclusion and recommendations to the study. Descriptive statistics were presented in percentages after the use of Statistical Program for Social Scientific (SPSS). The findings collected show that Microfinance Schemes are lent to the poor people but in the criteria used to lend and reclaim it, there is a lacuna that needs to be addressed in order to make Microfinance Schemes an ideal tool to Conflict Transformation In the conclusion, the study apportions responsibility, to MFIs but much more to the government which has the authority over various institutions responsible for the Human Development in the country. It also gives recommendations how to use MFS in order to address poverty among the poor people as a way to bring conflict Transformation. In this, the study recommends the need to streamline the criteria used to give MFS. The need to involve elders and LCs in supervision of borrowing-lending and the use of popular education and appropriate technology need to be emphasized if MFS is to produce better results.