NGOs, IGOs, and the Network Mechanisms of Post-Conflict Global Governance in Microfinance

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NGOs, IGOs, and the Network Mechanisms of Post-Conflict Global Governance in Microfinance

NGOs, IGOs, and the Network Mechanisms of Post-Conflict Global Governance in Microfinance Anna Ohanyan

NGOS, IGOS, AND THE NETWORK MECHANISMS OF POST-CONFLICT GLOBAL GOVERNANCE IN MICROFINANCE Copyright Anna Ohanyan, 2008. Softcover reprint of the hardcover 1st edition 2008 978-0-230-60769-9 All rights reserved. First published in 2008 by PALGRAVE MACMILLAN in the United States a division of St. Martin s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-37440-3 ISBN 978-0-230-61610-3 (ebook) DOI 10.1057/9780230616103 Library of Congress Cataloging-in-Publication Data Ohanyan, Anna. NGOs, IGOs, and the network mechanisms of post-conflict global governance in microfinance / Anna Ohanyan. p. cm. Includes bibliographical references and index. 1. Policy networks. 2. Non-governmental organizations Bosnia and Hercegovina. 3. Non-governmental organizations Afghanistan. 4. Non-governmental organizations Kosovo (Republic) 5. Microfinance Bosnia and Hercegovina. 6. Microfinance Afghanistan. 7. Microfinance Kosovo (Republic) I. Title. H97.7.O34 2008 332 dc22 2008012349 A catalogue record of the book is available from the British Library. Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition: November 2008

To my parents, Susanna and Suren Ohanyan

Contents List of Figures and Tables Acknowledgments Acronyms ix xi xv Introduction: The Promises and Perils of Network Governance 1 One NGOs, IGOs, and Global Public Policies 21 Two Transnationalism of Networks in Bosnia and Herzegovina 55 Three Local Politics of Transnational Networks in Bosnia and Herzegovina 87 Four Afghanistan: How Policies Travel 113 Five Kosovo: Lost in Translation 145 Six Is All Policy Portability Progressive? 171 Seven Network Mechanisms of Global Governance 193 Notes 209 Bibliography 215 Index 229

Figures and Tables Figures 2.1 Degree of Power Concentration and the Level of Policy Coherence 61 2.2 Partner network 63 Tables 1.1 Peace-building and institution-building 25 1.2 Network typology 42 2.1 Network typology with cases 59 3.1 Network typology in Bosnia and Herzegovina 90 3.2 Peace-building indicators 92 3.3 Institution-building indicators 93

Acknowledgments In the fall of 1999, a group of researchers led by Wolfgang Reinicke joined together for the UN Vision Project on Global Public Policy Networks, an initiative funded by the United Nations Foundation. Taking part in that project proved transformative for my research agenda. What began as a policy paper in that forum evolved into a dissertation and subsequent publications, and ultimately formed the foundation of the present book. I would like to thank Wolfgang Reinicke of the Global Policy Institute and his colleagues for this opportunity. The field research for this work would not have been possible without generous support from various institutions including the Woodrow Wilson International Center for Scholars, the Maxwell School of Citizenship and Public Affairs at Syracuse University, Stonehill College, and the Eurasia Foundation-Armenia. Stonehill College and the Eurasia Foundation- Armenia in particular were instrumental in enabling my research on the Stability Pact for South Eastern Europe. I again extend my gratitude to the insightful and dedicated policymakers I met at the Stability Pact. Funding from Syracuse University made possible my fieldwork in Bosnia and Herzegovina. The generosity and hospitality of the East European Studies Program at the Woodrow Wilson International Center for Scholars in 2007 is also acknowledged and greatly appreciated. Their generous support allowed the cross-region study of post-conflict microfinance in Afghanistan, Bosnia and Herzegovina, and Kosovo, and afforded important access to key officials within the U.S. Department of State, USAID, the World Bank, and NGOs based in Washington, DC. Throughout my research for this book, I have benefited from insightful comments, feedback, and encouragement from many academic colleagues, practitioners, and policymakers. In particular, Margaret Hermann and Mehrzad Boroujerdi of Syracuse University, Mitchell Orenstein of Johns Hopkins University, Suzanne Mettler of Cornell University, and Katrina Burgess of Tufts University were the key supporters in the formative stages of this work, and I remain grateful for their support. I also thank Hans Peter Schmitz of Syracuse University for insightful comments and

xii / acknowledgments valuable suggestions at various stages of this work over the years. I am similarly greatly appreciative of Robert Rotberg and fellow researchers at the Intrastate Conflict Program at the Kennedy School of Government at Harvard University who provided a stimulating environment and unique perspectives on issues of post-conflict governance during my two-year fellowship at the program from 2002 to 2004. The insightful suggestions provided by Daniel Lieberfeld of Duquesne University was also essential as the manuscript progressed to publication. And I thank Anthony Wahl and his colleagues at Palgrave Macmillan for their confidence in and support for this project, and to the reviewers of this book as well for their astute and helpful comments. My appreciation for the cooperation, time, and trust of the nearly hundred respondents across the globe for this project is impossible to overstate. In particular, I extend my deep gratitude to the respondents and their colleagues in microfinance NGOs in Bosnia and Herzegovina, Afghanistan, and Kosovo. Their genuine, analytical, and insightful responses have been crucial in shaping this research over the years. I am humbled by the experience and knowledge of these practitioners and policymakers, who work in the NGO sector, in international organizations and bilateral developmental agencies, and with developmental banks worldwide, often in very difficult and challenging post-conflict settings. They are champions of principled and important causes, enduring hardships on daily basis that few can imagine. I am thankful for their hospitality and willingness to tell their stories of war and peace. My humble hope is that the present book can be of use in assisting their missions of addressing the challenges and suffering in war-torn societies. Special thanks go to my students at Stonehill College for their intellectual courage and independent thinking on issues of post-conflict governance. The dynamic, exciting, and energizing environment that they create in the classroom has allowed me to share with them ideas from this book and to hear them again in turn from their fresh perspectives. Indeed, these interactions have contributed to the articulation, crafting, and refinement of many of the concepts and analyses. It is in my students, independent and critical thinkers, and in my teaching that I see the social purpose of my research every day. This book would not have been possible without the faithful support of my family and friends who have made the process a pleasant and productive experience. My twin two-year old daughters, Isabelle Ani and Elise Mariam, have been a constant source of joy and adventure. They have given me a fantastic escape to a world of small wonders and exploration that I hope to reciprocate by striving for a future unbound by legacies of war and violence.

acknowledgments / xiii Finally, it is my husband, Aram Adourian, whom I celebrate for the unwavering support and intellectual company throughout this work, whether changing diapers or sharing network theories from physics. It is his presence in all facets of my life that makes it complete and brings it all together. For this, I have no words.

Acronyms AED AfK AKAM ALP ARIES ARMP BiH BRAC BZMF CGAP CIDA CORDAID CWS DANIDA DFID DPC EBRD EFSE EKI ICMC IDP IDRC IFC KEP KfW KWI LID LPC Academy for Educational Development Agency for Finance in Kosovo Aga Khan Agency for Microfinance Alternative Livelihoods Programs Agriculture Rural Investment and Enterprise Strengthening Afghanistan Rural Microcredit Programme Bosnia and Herzegovina Bangladesh Rural Advancement Committee Beselidhja Zavet Microfinance Program of World Relief Consultative Group to Assist the Poor Canadian International Development Agency Catholic Organization for Relief and Development Church World Services Danish International Development Agency Department for International Development Degree of Power Concentration The European Bank of Reconstruction and Development European Fund for Southeastern Europe Ekonomska Kreditna Institucija International Catholic Migration Committee Internally Displaced Person The International Development and Research Centre International Finance Corporation Kosovo Enterprise Program Kreditanstalt für Wiederaufbau Kosovo Women s Initiative Local Initiatives Department Level of Policy Coherence MFI Microfinance Institution