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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.

Suggested Citation

  • Chowdhury, Tamgid Ahmed & Mukhopadhaya, Pundarik, 2012. "Assessment of multidimensional poverty and effectiveness of microfinance-driven government and NGO projects in the rural Bangladesh," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 500-512.
  • Handle: RePEc:eee:soceco:v:41:y:2012:i:5:p:500-512
    DOI: 10.1016/j.socec.2012.04.016
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    References listed on IDEAS

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    1. 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.
    2. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
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    6. 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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    8. 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.
    9. 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.
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    12. 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.
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    Cited by:

    1. Widiarto, Indra & Emrouznejad, Ali, 2015. "Social and financial efficiency of Islamic microfinance institutions: A Data Envelopment Analysis application," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 1-17.
    2. Ayuya, Oscar I. & Gido, Eric O. & Bett, Hillary K. & Lagat, Job K. & Kahi, Alexander K. & Bauer, Siegfried, 2015. "Effect of Certified Organic Production Systems on Poverty among Smallholder Farmers: Empirical Evidence from Kenya," World Development, Elsevier, vol. 67(C), pages 27-37.

    More about this item

    Keywords

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

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other

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