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Does Micro-credit Program in Bangladesh Increase Household’s Ability to Deal with Economic Hardships?

  • Hoque, Serajul

It is often argued that micro-credit program intervention at the grassroots level increases the ability of the poor to deal with crises. This paper examines the relationship between households’ involvement in micro-credit programs and their capacities to deal with economic hardships by focussing on BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data collected in one region of rural Bangladesh, the paper addresses a key question: Do micro-credit programs increase the ability of the poor to deal with crises? The findings in this paper indicate that BRAC’s micro-credit program in Bangladesh may increase participating households’ abilities to cope with economic hardships but further research to much more systematic information needs to be conducted about micro-credit program before conclusive results can be reached.

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File URL: http://mpra.ub.uni-muenchen.de/6678/1/MPRA_paper_6678.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6678.

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Date of creation: 10 Jan 2008
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Handle: RePEc:pra:mprapa:6678
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  1. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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