Microcredit as a cure for poverty: The case of Serbia

When the Nobel Peace Prize for the year 2006 was given to Dr. Muhammad Yunus and Grameen Bank "for their efforts to create economic and social development from below", microcredit was recognised as an efficient tool against poverty. According to Statistical Office of Republic of Serbia, 6.6% of Serbian population was objectively poor and 13.9 unemployed in 2007. On the other hand, the possibilities for poor and unemployed to take a micro loan in order to start business are limited. Many groups are totally excluded from the banking system on the grounds that they are not bankable. This indicates that certain measures should be undertaken so that the potential of microcredit as a tool for poverty and self-employment incentive could be fully exploited, for the benefit of the groups in need and Serbian society as whole