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Financing the Poor: Can microcredit make a difference? Empirical observations from Bangladesh

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  • Farhad Hossain
  • Tonya Knight

Abstract

Over the last three decades microcredit has gained enormous success in reducing poverty on a global scale. As an efficient financial mechanism, microcredit enables various governmental and non-governmental actors to realise the millennium development goals (MDGs). Based on our recent field-research on microfinance in central Bangladesh, this paper empirically examine and analyse the role of microfinance institutions (MFIs) in promoting rural livelihoods in the country. The study reflects on recent arguments against microcredit and shows that despite some criticisms, microfinance is making significant contribution in uplifting the livelihoods of disadvantaged rural communities.

Suggested Citation

  • Farhad Hossain & Tonya Knight, 2008. "Financing the Poor: Can microcredit make a difference? Empirical observations from Bangladesh," Global Development Institute Working Paper Series 3808, GDI, The University of Manchester.
  • Handle: RePEc:bwp:bwppap:3808
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    File URL: http://hummedia.manchester.ac.uk/institutes/gdi/publications/workingpapers/bwpi/bwpi-wp-3808.pdf
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    Cited by:

    1. van Rooyen, C. & Stewart, R. & de Wet, T., 2012. "The Impact of Microfinance in Sub-Saharan Africa: A Systematic Review of the Evidence," World Development, Elsevier, vol. 40(11), pages 2249-2262.
    2. Kamel Bel Hadj Miled & Moheddine Younsi & Monia Landolsi, 2022. "Does microfinance program innovation reduce income inequality? Cross-country and panel data analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-15, December.
    3. Bhatnagar Deepali & Yadav Kajal, 2023. "A Study on Loan Delinquency of the Self Help Group-Bank Linkage Programme in Rural Rajasthan," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 86-101, December.
    4. Wan Nurulasiah binti Wan Mustapa & Abdullah Al Mamun & Mohamed Dahlan Ibrahim, 2018. "Economic Impact of Development Initiatives on Low-Income Households in Kelantan, Malaysia," Social Sciences, MDPI, vol. 7(7), pages 1-17, July.

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