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Assessment of multidimensional poverty and effectiveness of microfinance-driven government and NGO projects in the rural Bangladesh

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  • Chowdhury, Tamgid Ahmed
  • Mukhopadhaya, Pundarik

Abstract

This paper has developed a multidimensional model usable in assessing economic, social, political and cultural dimensions of poverty by utilizing primary data collected from 78 villages in Bangladesh using a participatory approach. Employing the developed model, a comparative analysis has been performed between microfinance-driven government (GO) and NGO (non-government organization) projects to explore their relative effectiveness in enhancing wellbeing of the poor in rural Bangladesh. It is observed that GO agencies are more effective in enhancing ‘economic wellbeing’ of the poor, whereas NGOs are contributing more in the ‘social’ aspects of wellbeing. Findings also revealed that, as whole, GO agencies perform 42% better than NGOs in improving living standards of the rural poor which contradicts with the existing literature of poverty reduction projects in developing countries.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 41 (2012)
Issue (Month): 5 ()
Pages: 500-512

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Handle: RePEc:eee:soceco:v:41:y:2012:i:5:p:500-512

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Web page: http://www.elsevier.com/locate/inca/620175

Related research

Keywords: Multidimensional poverty; Government; Non government organization; Economic wellbeing; Social wellbeing; Bangladesh;

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References

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  1. Paul Shaffer, 2008. "New Thinking on Poverty: Implications for Globalisation and Poverty Reduction Strategies," Working Papers 65, United Nations, Department of Economics and Social Affairs.
  2. Edwards, Michael & Hulme, David, 1996. "Too close for comfort? the impact of official aid on nongovernmental organizations," World Development, Elsevier, vol. 24(6), pages 961-973, June.
  3. Kevane, Michael & Wydick, Bruce, 2001. "Microenterprise Lending to Female Entrepreneurs: Sacrificing Economic Growth for Poverty Alleviation?," World Development, Elsevier, vol. 29(7), pages 1225-1236, July.
  4. Morduch, J., 1998. "The Microfinance Schism," Papers 626, Harvard - Institute for International Development.
  5. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
  6. Deepa Narayan & Robert Chambers & Meera K. Shah & Patti Petesch, 2000. "Voices of the Poor : Crying Out for Change," World Bank Publications, The World Bank, number 13848, October.
  7. Goetz, Anne Marie & Gupta, Rina Sen, 1996. "Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh," World Development, Elsevier, vol. 24(1), pages 45-63, January.
  8. Meyer, Carrie A., 1992. "A step back as donors shift institution building from the public to the "private" sector," World Development, Elsevier, vol. 20(8), pages 1115-1126, August.
  9. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
  10. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  11. Sabina Alkire & Rufus Black, 1997. "A practical reasoning theory of development ethhics: furthering the capabilities approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(2), pages 263-279.
  12. Kabeer, Naila & Noponen, Helzi, 2005. "Social and Economic Impacts of PRADAN's Self Help Group Microfinance and Livelihoods Promotion Program: Analysis From Jharkhand, India," Working Papers 23755, University of Sussex, Imp-Act: Improving the Impact of Microfinance on Poverty: Action Research Program.
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