IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-11-00017.html
   My bibliography  Save this article

Microcredit - A More Credible Social than Economic Program in Bangladesh

Author

Listed:
  • Rafiqul Islam Molla

    (Faculty of Business and Law, Multimedia University)

  • Md. Mahmudul Alam

    (Institute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia)

Abstract

Calculated under the framework of economic-profit counting, the productivity of microcredit in Bangladesh is found very low. In this survey about 48% of the borrowers had to compromise their normal wages for self-employed labor to be able to pay the high interest for the credit. Similarly its social productivity is also found marginal. However, about 90% of the borrowers felt comfortable with microcredit even at so high interest rate seemingly to avoid losing or compromising their social and political empowerment at the hands of the local moneylenders or relatives. Borrowers give high value to their socio-political empowerments and are ready to compromise normal wages for their self-employed labor. In the game of political economy of credit for the poor, microcredit is seen as a means of protecting and enhancing socio-political empowerments of the low income and distressed people in the society and is appraised as a credible social than economic institution.

Suggested Citation

  • Rafiqul Islam Molla & Md. Mahmudul Alam, 2011. "Microcredit - A More Credible Social than Economic Program in Bangladesh," Economics Bulletin, AccessEcon, vol. 31(2), pages 1095-1104.
    • Handle: RePEc:ebl:ecbull:eb-11-00017
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I2-P102.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rafiqul Molla & M. Alam & Abu Wahid, 2008. "Questioning Bangladesh's Microcredit," Challenge, Taylor & Francis Journals, vol. 51(6), pages 113-121.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahmudul Alam & Rafiqul Islam Molla, 2012. "Limitations Of Microcredit For Promoting Microenterprises In Bangladesh," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(192), pages 41-54, January –.
    2. Kamaluddin, Amrizah & Hadi, Nabawiyah Abdul & Alam, Md. Mahmudul & Adil, Mohamed Azam Mohamed, 2019. "Social Collateral Model for Islamic Microfinance," SocArXiv ya8ft, Center for Open Science.
    3. Md. Mahmudul Alam & Rafiqul Islam Molla, 2012. "Inside Productivity of Microcredit in Bangladesh: A Surgical Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(3), pages 478-490.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahmudul Alam & Rafiqul Islam Molla, 2012. "Limitations Of Microcredit For Promoting Microenterprises In Bangladesh," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(192), pages 41-54, January –.
    2. Alam, Md. Mahmudul & Ismail, Russayani & Said, Jamaliah & Pahlevi, Reza Widhar, 2021. "Assessment of Credit Card Market Features in Malaysia: Risk of Achieving Women’s Financial Empowerment," OSF Preprints jcua6, Center for Open Science.
    3. Youbin KANG, 2021. "The rise, demise and replacement of the Bangladesh experiment in transnational labour regulation," International Labour Review, International Labour Organization, vol. 160(3), pages 407-430, September.

    More about this item

    Keywords

    Grameen Bank; microcredit; microenterprise; subsistent; poverty alleviation; stereotype; empowerment;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.