Replicating Grameen in Papua New Guinea

Abstract

The Lik Lik Dinau Abitore Trust (LLDAT) is a micro-credit and savings project which has been operating in Papua New Guinea since 1994, replicating the approach of the Grameen Bank in Bangladesh. Here, the issues and constraints presented to the Grameen model by the PNG environment are examined, using the LLDAT as a case study. Major issues which impact on the project include geographic isolation, linguistic diversity, a high level of violence, and local cultural and economic issues. Problems encountered include relatively low repayment rates (by Grameen Bank standards), difficulties in enforcing loan conditions, and a slow pace of project implementation. But the project has also experienced numerous successes, and is working towardsimproving its adaptation of the model. Show more