On the Effectiveness of Microcredit and Health Insurance Access on Vulnerable People: Evidence from Cameroon

Abstract Using secondary data collected from Dschang in the West region of Cameroon, we examine the effectiveness of micro-credit and health insurance access on vulnerable groups which includes the physically disabled and other forms of vulnerability. We undertake a statistical and qualitative econometric analysis using a logit model and obtain the following results: microcredit and health insurance access reduce the vulnerability of people via their health, financial and social status. Our findings are at the basis of some economic measures that should be taken to assist vulnerable people. From a macroeconomic perspective, these measures include the implementation of a food policy targeted towards increasing access to nutrition; a financial policy to improve access to drugs for individuals, and a social policy to achieve a high level of integration of vulnerable peoples and a high level of literacy of individuals. From a microeconomic perspective, we recommend that microfinance managers should develop more products specific to and targeting the vulnerable population as well as those involved in small jobs and in the informal sector with specific loans that can help them move to formal and more conventional jobs. To the best of our knowledge, this is the first paper with this objective and using the same case study methodology. JEL Classification: G21; I32; I13; I18; P46.