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The Grameen Bank and Poverty alleviation in Bangladesh

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  • Abu, N. M. Wahid

Abstract

. The Grameen (grameen means rural) Bank of Bangladesh has innovated a mechanism under which credit can be provided to the poorest of the poor on a group liability basis instead of any collateral. Based on this principle, over the last decade, the bank has been successfully operating with an unprecedented loan recovery rate. Although from the point of view of profits, the Grameen Bank is not yet a viable institution, empirical evidence suggests that the bank's credit program has significantly improved the socioeconomic conditions of its borrowers. The Grameen Bank's success story in the alleviation of poverty in Bangladesh has resulted in widespread attempts of its replication in many other countries including the United States and Canada. The spread of the Grameen Bank idea around the world has drawn keen attention from researchers, policy makers and agencies interested in rural development.

Suggested Citation

  • Abu, N. M. Wahid, 1994. "The Grameen Bank and Poverty alleviation in Bangladesh," American Journal of Economics and Sociology, Wiley Blackwell, vol. 53(1), pages 1-15, January.
    • Handle: RePEc:bla:ajecsc:v:53:y:1994:i:1:p:1-15
    DOI: 10.1111/j.1536-7150.1994.tb02666.x
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    References listed on IDEAS

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    1. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
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    3. Shailesh Rastogi & Arpita Sharma & Geetanjali Pinto & Venkata Mrudula Bhimavarapu, 2022. "A literature review of risk, regulation, and profitability of banks using a scientometric study," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    4. Zahra, Shaker A. & Gedajlovic, Eric & Neubaum, Donald O. & Shulman, Joel M., 2009. "A typology of social entrepreneurs: Motives, search processes and ethical challenges," Journal of Business Venturing, Elsevier, vol. 24(5), pages 519-532, September.
    5. Asadul Islam & Debayan Pakrashi, 2014. "The Microcredit Puzzle: Labour Supply Behaviour of Rural Households in Bangladesh," Monash Economics Working Papers 24-14, Monash University, Department of Economics.
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    7. Jhilam Zebunnessa Iqbal, . "The Impact of Grameen Bank Credit on the Levels of Income, Employment, and Productivity of Poor Landless Households in Rural Bangladesh," Fordham Economics Dissertations, Fordham University, Department of Economics, number 2002.5.
    8. William Lazonick, 2008. "Entrepreneurial Ventures and the Developmental State: Lessons from the Advanced Economies," WIDER Working Paper Series DP2008-01, World Institute for Development Economic Research (UNU-WIDER).
    9. Félix, Elisabete Gomes Santana & Belo, Teresa Freitas, 2019. "The impact of microcredit on poverty reduction in eleven developing countries in south-east Asia," Journal of Multinational Financial Management, Elsevier, vol. 52.
    10. William Lazonick, 2010. "Entrepreneurial Ventures and the Developmental State: Lessons from the Advanced Economies," Working Papers id:3167, eSocialSciences.
    11. Emily Chamlee-Wright, 2005. "Entrepreneurial Response to “Bottom-up” Development Strategies in Zimbabwe," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(1), pages 5-28, January.
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    13. Emily Chamlee-Wright, 2015. "Markets as an extension of culture," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 5, pages 88-122, Edward Elgar Publishing.

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