Assessing the impact of microfinance programming on children: an evaluation from post-tsunami Aceh

Area of Science:

• Development Economics
• Child Welfare Studies
• Post-Disaster Recovery

Background:

• Microfinance programs are often implemented to aid recovery after disasters.
• Assessing the long-term social impact of microfinance on vulnerable populations, particularly children, is crucial.

Purpose of the Study:

• To evaluate the long-term impact of microfinance programs on child protection indicators in Aceh, Indonesia, six years after the 2004 tsunami.
• To compare child protection outcomes between children of microfinance participants and non-participants.

Main Methods:

• A structured survey was administered to 185 parents participating in microfinance and 192 non-participants.
• Four child protection indicators were assessed: diet, health, childcare, and education.
• Analysis contrasted microfinance beneficiaries with a control group.

Main Results:

• No significant long-term differences were found in diet, health, childcare, or education between children of microfinance participants and non-participants.
• The study's findings were insignificant across all four child protection indicators examined.

Conclusions:

• Microfinance programs may not yield discernible long-term benefits for child protection indicators in post-disaster contexts.
• There is a need for microfinance organizations to adopt broader social impact assessment metrics beyond traditional economic indicators.