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Does credit improve the food consumption vulnerability of the extreme poor? - Empirical evidence from Bangladesh

Author

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  • Hasan, Mohammad Monirul

Abstract

This paper examines the extent of seasonal hunger and its food consumption vulnerability among rural households in the North West part of Bangladesh (i.e., the greater Rangpur region) and whether the Programmed Initiative for Monga Eradication or PRIME interventions (such as flexible micro-credit, Emergency loan and cash for work) have some positive impact for improving the consumption ordering of monga affected households or not. Seasonal hunger, also known as monga in greater Rangpur, is caused by a deprivation of food during certain months of the year when households do not have adequate employment, income, and savings. That is, monga is an ex post measure of seasonal deprivation of food. However, for policymaking purpose, knowing who are going to be in seasonal hunger in future is more important than knowing who already are. This ex post measure of seasonal food deprivation through the changes in consumption ordering in two years- 2008 and 2007 can be defined as food consumption vulnerability. That is, vulnerability to seasonal hunger is the likelihood of remaining in or falling into seasonal hunger. Households smooth consumption via income smoothing and other measures, which also reduce their vulnerability to monga. When consumption smoothing does not happen for one reason or another, food deprivation is sure to follow.

Suggested Citation

  • Hasan, Mohammad Monirul, 2010. "Does credit improve the food consumption vulnerability of the extreme poor? - Empirical evidence from Bangladesh," MPRA Paper 28192, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:28192
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    File URL: https://mpra.ub.uni-muenchen.de/28192/1/MPRA_paper_28192.pdf
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    References listed on IDEAS

    as
    1. M. M. Pitt & S. R. Khandker, 2002. "Credit Programmes for the Poor and Seasonality in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 1-24.
    2. Paxson, Christina H, 1993. "Consumption and Income Seasonality in Thailand," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 39-72, February.
    3. Robert M. Townsend, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 83-102, Summer.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Poverty; Microfinance; Impact Analysis; Food Consumption Vulnerability;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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