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Does Micro-credit Program in Bangladesh Increase Household’s Ability to Deal with Economic Hardships?

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  • Hoque, Serajul

Abstract

It is often argued that micro-credit program intervention at the grassroots level increases the ability of the poor to deal with crises. This paper examines the relationship between households’ involvement in micro-credit programs and their capacities to deal with economic hardships by focussing on BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data collected in one region of rural Bangladesh, the paper addresses a key question: Do micro-credit programs increase the ability of the poor to deal with crises? The findings in this paper indicate that BRAC’s micro-credit program in Bangladesh may increase participating households’ abilities to cope with economic hardships but further research to much more systematic information needs to be conducted about micro-credit program before conclusive results can be reached.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6678.

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Date of creation: 10 Jan 2008
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Handle: RePEc:pra:mprapa:6678

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Related research

Keywords: Micro-credit; Economic Hardships; Rural Bangladesh;

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Cited by:
  1. Becchetti, Leonardo & Castriota, Stefano, 2011. "Does Microfinance Work as a Recovery Tool After Disasters? Evidence from the 2004 Tsunami," World Development, Elsevier, vol. 39(6), pages 898-912, June.
  2. Hermes, Niels & Lensink, Robert, 2011. "Microfinance: Its Impact, Outreach, and Sustainability," World Development, Elsevier, vol. 39(6), pages 875-881, June.

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