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Impact of microfinance of IBBL on the rural poor's livelihood in Bangladesh: an empirical study


  • M. Mizanur Rahman
  • Fariduddin Ahmad


Purpose - This paper describes a scheme which aims to alleviate rural poverty by providing small and microinvestment to the agricultural and rural sector for generating employment and to raise the income of the rural poor. Design/methodology/approach - To assess the impact of rural development schemes on rural poor's livelihood, primary data were collected from 1,020 clients working across the country. Multistage random sampling method was followed to select the clients. Tabular, graphical, and econometrical methods were followed to analyze the data. Findings - Results show that household income, productivity of crops and livestock, expenditure, and employment had increased significantly due to the influence of invested money. Results of the Logit-model showed that clients' socio-economic factors like age, number of family members in farming, total land size and clients' ethics and morals had a positive and significant influence on household income. Practical implications - Client's opined that the microinvestment program had provided them with the opportunity to perform their economic activities in a more organized way, leading them to the higher quality of life and also develops their awareness towards health care, proper sanitation, and drinking safe water. Originality/value - The paper recommends the replication of this program in other rural areas of the country with the increment of investment size, demand-led effective training on different income generating activities and monitoring on more

Suggested Citation

  • M. Mizanur Rahman & Fariduddin Ahmad, 2010. "Impact of microfinance of IBBL on the rural poor's livelihood in Bangladesh: an empirical study," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 3(2), pages 168-190, June.
  • Handle: RePEc:eme:imefpp:v:3:y:2010:i:2:p:168-190

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    References listed on IDEAS

    1. Pitt, M.M. & Khandker, S.R., 1996. "Household and Intrahousehold Impact of the Grameen Bank and Similar Targeted Credit Programs in Bangladesh," World Bank - Discussion Papers 320, World Bank.
    2. Amin, Sajeda & Rai, Ashok S. & Topa, Giorgio, 2003. "Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh," Journal of Development Economics, Elsevier, vol. 70(1), pages 59-82, February.
    3. A. Mushtaque R. Chowdhury & Abbas Bhuiya, 2004. "The wider impacts of BRAC poverty alleviation programme in Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(3), pages 369-386.
    4. Ahmed, Syed Masud & Adams, Alayne M. & Chowdhury, Mushtaque & Bhuiya, Abbas, 2000. "Gender, socioeconomic development and health-seeking behaviour in Bangladesh," Social Science & Medicine, Elsevier, vol. 51(3), pages 361-371, August.
    5. Jaim, W. M. H., 1986. "Financing The Poverty Stricken Rural Poor In Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 9(2).
    6. Mosley, Paul & Hulme, David, 1998. "Microenterprise finance: Is there a conflict between growth and poverty alleviation?," World Development, Elsevier, vol. 26(5), pages 783-790, May.
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    Cited by:

    1. Shirazi, Nasim Shah, 2012. "Targeting and Socio-Economic Impact of Microfinance: A Case Study of Pakistan," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 20, pages 1-28.
    2. KASRI, RAHMATINA & Ahmed, Habib, 2015. "Assessing Socio-Economic Development based on Maqāṣid al-Sharīʿah Principles: Normative Frameworks, Methods and Implementation in Indonesia," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 23, pages 73-100.

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    Microeconomics; Finance; Poverty; Islam; Bangladesh;


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