KfW has been assigned responsibility by the German government and several other donors for projects designed to reconstruct the financial landscapes of Southeast Europe. These activities are recognized as quite successful in building sustainable financial institutions that serve the small end of the market, with special emphasis on microenterprise and small business. The KfW-managed projects have contributed to the overall stability of financial sectors and to economic recovery and growth through employment creation and investment. This book reviews experience gained and analyses the reasons for the successes achieved, options for further improvement, and scope for replicability in other transition and developing economies. A particularly interesting feature is that relatively small amounts of public funds can catalyse financial markets in volatile environments.

Bohnet, M.: The Contribution of the German Government to the Reconstruction of Southeast Europe.- Matthäus-Maier, I., von Pischke, J.D.: Introduction.- The Evolution of Financial Sector and Economic Development in Southeast Europe: Mehl, A., Winkler, A.: The Financial Sector and Economic Development.- Innovative Approaches to Building Financial Sectors in Southeast Europe: Köhn, D., Erhardt, W.: Competition and Complementarity.- Glaubitt, K., Schütte, H.: Providing Long-Term Funds to Local Financial Institutions.- Syed Aftab Ahmed: Strengthening Financial Sectors in Transition Countries.- Wallace, E.: EBRD's Micro and Small Enterprise Lending Programmes.- Rhyne, E.: Surviving the Crisis.- Neuschütz, V.: Institutional Development and Commercialisation.- Pioneering Banks and Bankers in Southeast Europe: Witte, A.: Market Entry in Southeast Europe.- Zeitinger, C.-P.: Sustainable Microfinance Banks.- Baechle, J.: Equity Participation in Microfinance Banks in Southeast Europe and Georgia.-Research and Impact Analysis for Accountability and Management: Heidhues, F.: The Contribution of Science and Research to the Development of Microfinance.- Dunn, E.: Best Practice Principles for Microfinance Impact Analysis.- Addai, A., Nienborg, K.: Enterprise Level Impacts of Financial Sector Projects in Southeast Europe.- Wisniwski, S., Maurer, K.: Impact of Financial Sector Projects in Southeast Europe.- Matthäus-Maier, von Pischke, J.D.: Summary and Conclusion.