scholarly journals Why some poor women in Bangladesh do not opt for micro-credit?

2014 ◽  
Vol 11 (2) ◽  
pp. 285-292 ◽  
Author(s):  
MA Khatun ◽  
MA Islam ◽  
S Majumder
Keyword(s):  
Rural Women ◽  
Poverty Alleviation ◽  
Poor People ◽  
High Interest Rate ◽  
Starting Time ◽  
The Poor ◽  
Poor Women ◽  
Poor Families ◽  
Poor Management ◽  
Micro Credit

Despite many positive impacts of micro-credit, some studies found that micro-credits are not reaching the extreme poor. This study is designed to find out the major causes why rural women do not join micro-credit programme. The present study conducted case studies on ten dropped out members, three non-NGO/MFI members and five NGO/MFI officials. The important causes for dropout are high interest rate, poor management of loan money by clients, management of default cases by NGO/MFI officials, starting time of repayments of instalment, improper utilisation of loan money, husband’s unacceptable interference, lack of training to utilise the money and difficulty in getting large amount of loan. On the other hand, worry of failure to repay the instalment, unwillingness to take loan and husband’s opposition are the main reasons for non-membership of micro-credit programmes. Tough membership criteria set by the NGOs/MFIs restricts the access to micro-credit option for many of the poor families. Though some NGOs/MFIs have some programmes to support the ultra poor, the coverage is limited. One important hurdle to overcome is the psychological poverty. There are many poor people who are not motivated to get involved in the process despite many NGOs/MFIs are operating at their doorsteps. Appropriate actions are needed to increase the coverage of the micro-credit programme to fight against poverty. NGOs/MFIs should focus not only on the profit but also on the true achievement in poverty alleviation. DOI: http://dx.doi.org/10.3329/jbau.v11i2.19927 J. Bangladesh Agril. Univ. 11(2): 285-292, 2013

scholarly journals Micro Credit: The Empowerment of Women

2014 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Md. Ariful Islam ◽  
Mahmudul Hasan Siddiqui ◽  
Kh. Fahim Hossain ◽  
Md. Rayhan Islam
Keyword(s):  
Rural Women ◽  
Impact Analysis ◽  
Secondary Data ◽  
Rural Poor ◽  
Credit Institution ◽  
The Poor ◽  
Long Run ◽  
Poor Women ◽  
The Impact ◽  
Micro Credit

All Micro-credit institutions of Bangladesh claim that they bring the poor women from dead end situation to a promising position by providing a very small size of loan, which is given in cash. This paper attempts to critically examine the impacts of micro credit program of micro credit institution on the empowerment of the rural poor women. In this study some major indicators of women empowerment have been specified so as to make a judgment whether or not micro credit institution could actually reach the poor women. The details of the impact analysis in this sphere have been made by using both the qualitative and quantitative tools on the basis of secondary data. The estimates show hardly any significant relationship between micro credit institute operations and a strong position of the rural women in question.However the gloomy findings of this paper are expected to create awareness of the policy makers about the long run impact of micro credit programs of micro credit institution and followers on the rural poor women.

scholarly journals EFFECTIVENESS OF ZAKAT-BASED PROGRAMS ON POVERTY ALLEVIATION AND ECONOMIC EMPOWERMENT OF POOR WOMEN: A CASE STUDY OF BANGLADESH

2016 ◽  
Vol 1 (2) ◽  
pp. 229-258
Author(s):  
Fahami Muhammad Anis ◽  
Salina H. Kassim
Keyword(s):  
Rural Women ◽  
Rural Areas ◽  
Poverty Alleviation ◽  
Equity Capital ◽  
Cash Transfer ◽  
Economic Empowerment ◽  
The Poor ◽  
Poor Women ◽  
Before And After ◽  
Development Approach

Among the many problems facing Bangladesh, poverty remains a key problem affecting millions of lives. During the past few decades, many initiatives have been implemented such as microcredit and cash transfer programs, yet the results seemed to be ambiguous. New frontiers are now sought to find new sources of finance which could offer a more effective and sustainable solution to the root cause of the poverty problem. Considering the idea of entrepreneurship and group-based development approach of microcredit, a zakat-based development approach was initiated in Bangladesh at a private level by an organization called Center for Zakat Management (CZM) for poverty alleviation and sustainable economic empowerment targeting poor women in rural areas. This paper aims to assess the effectiveness of the CZM efforts in utilizing zakat funds for promoting entrepreneurship among poor rural women. Focusing on the case of Bangladesh, this study assesses the effectiveness of zakat on aspects such as income, house hold expense and fixed asset accumulation of the poor client based on the “before and after” approach. Groups comprising of poor individuals and families are given equity capital/seed money and are encouraged to embark on small businesses according to their own liking. The groups are supervised for a period of a minimum of three years to ensure all individuals within the group are able to continue with their activities and ultimately, free themselves from the shackles of poverty and graduate into sustainable livelihood. Results indicate a significant nominal and real increase in average monthly income, increase in fixed assets and an increase in monthly average household expenditure before and after receiving zakat money. Results also demonstrate factors such as age of the entrepreneur, family size, type of business involved and the amount of zakat received to have a strong influence in determining the success of women entrepreneurs. Education level of the entrepreneur, on the other hand, does not seem to have significant impact on the success or failure of the entrepreneur. The findings from this paper shed light on the effectiveness of zakat-based approach in alleviating poverty and ensuring sustainable economic empowerment of the poor rural women.Keywords:  Zakat, Poverty alleviation, Entrepreneurship, BangladeshJEL Classification: I32, L26, Z12

scholarly journals Participation of rural women in micro credit: A study on BRAC in sadar upazila of Gazipur district

2013 ◽  
Vol 10 (2) ◽  
pp. 277-282
Author(s):  
MM Rana ◽  
MA Rahman ◽  
GMK Uddin ◽  
PK Sarma
Keyword(s):  
Rural Women ◽  
Poverty Alleviation ◽  
Percent Level ◽  
Positive Contribution ◽  
Land Area ◽  
Loan Repayment ◽  
Poor Women ◽  
Credit Programs ◽  
Average Annual Income ◽  
Micro Credit

The study presents the issues of rural women in Sadar Upazila of Gazipur district considering their participation in micro credit programs for poverty alleviation. Data were collected from 75 BRAC women beneficiaries of four villages following random sampling techniques. On the basis of credit, the respondent’s have been classified into three categories. These are: i) A-small credit (up to Tk.4000) ii) B-Medium credit (Tk.4001-7000) and iii) C-Large credit (Tk.7001-10000). Average credits received by the respondents were Tk. 3250, Tk. 5875, and Tk. 8895 by small, medium, and large categories, respectively. The average annual income and savings of the respondents were Tk. 24245 and Tk. 1106, respectively. The repayment rate was 69.81 percent. Level of education, size of own land area, amount of income, savings and amount of loan received were found to be positive contribution to loan repayment performance. The study clearly hints that micro credit provides greater opportunity for rural poor women to improve their socioeconomic conditions.DOI: http://dx.doi.org/10.3329/jbau.v10i2.14919 J. Bangladesh Agril. Univ. 10(2): 277-282, 2012

Livelihood Promotion: Can the Collectives of NRLM Really Do It?

2021 ◽  
pp. 097300522110008
Author(s):  
H. S. Shylendra
Keyword(s):  
Poverty Alleviation ◽  
Integrated Approach ◽  
Development Programme ◽  
Professional Support ◽  
Role Clarity ◽  
The Poor ◽  
Rural Livelihood ◽  
Poor Women ◽  
Policy Suggestions ◽  
New Generation

As a new generation development programme, the National Rural Livelihood Mission (NRLM) has sought to promote collectives of the poor women as the corner-stone of its strategy for livelihood promotion. The livelihood enhancement is meant to be actualised through a multi-dimensional strategy of livelihood protection and promotion. The paper hypothesised that despite their avowed goal, the collectives of women are bound to face enormous challenges in the livelihood promotion in the absence of an integrated approach more so in the context of neoliberalism. The findings of the paper corroborate the hypothesis to a great extent. Contrary to the theoretical visualisation of institutionalists, collectives of poor have faced challenges in their self-reliant emergence. The intervention has emerged more as a minimalist microfinance with inherent limitations regarding poverty alleviation. The paper concludes that the collectives of NRLM have a long way to go before they can emerge as strong livelihood promoting agencies. Sustained support to build the capacities of the fledging collectives, a reversal of the top–down elements of their multi-tier structure and the strong need for greater role clarity for the collectives along with professional support are some of the policy suggestions.

SOCIO-ECONOMIC EMPOWERMENT OF WOMEN THROUGH MICRO CREDIT: AN EMPIRICAL STUDY

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah
Keyword(s):  
Rural Women ◽  
Poverty Reduction ◽  
Rural Poverty ◽  
Poverty Line ◽  
Economic Empowerment ◽  
Political Empowerment ◽  
The Poor ◽  
The Government ◽  
The Impact ◽  
Micro Credit

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.

scholarly journals Predicting Likelihood for Loan Default Among Bank Borrowers

2019 ◽  
Vol 11 (1) ◽  
pp. 318
Author(s):  
Mohammad Aslam ◽  
Senthil Kumar ◽  
Shahryar Sorooshian
Keyword(s):  
Poverty Alleviation ◽  
Local Governments ◽  
Poor People ◽  
Grameen Bank ◽  
Poverty Level ◽  
Loan Default ◽  
International Agencies ◽  
The Poor ◽  
The World ◽  
Income Generating Activities

Poverty is a threat to the world. In its extreme form at any part of the world, it will make endanger rest of the world. In fact, it is the source of crime and the worst form of violence. The poor people do not commit any crime but they get punishment out of being born as a poor that is not controllable in their hand. Microfinance has been designed to eliminate poverty and help marginal and poor people through small income generating activities. The borrowers need capital to materialize their dream, may be in a small amount and microfinance can play important role in this scenario. Through microfinance, small entrepreneurs may acquire necessary inputs to start their business. Both local governments and international agencies are trying to eliminate poverty through microfinance programs, services and guidelines. With this concept, Microfinance has been hosted primarily in Bangladesh. Grameen Bank (GB) has been serving large number of people below poverty level in Bangladesh. However, impact of microfinance is still questionable in several studies. Microfinance used properly and returned back to the lender with stipulated amount and time shows its working effectively for poverty alleviation. Otherwise, there must be loan default and the whole system may be in question. We survey with questionnaire to find out factors contributing to loan default among GB borrowers using binomial logistic regression. The results showed that some factors were crucial for loan default and should be treated properly at the start of lending.

scholarly journals The Response and Pattern of Community Management for the Variety of Poverty Alleviation Assistance in the Fishermen's Village, across Belawan

2018 ◽  
Vol 1 (3) ◽  
pp. 171-182
Author(s):  
Bakhrul Khair Amal
Keyword(s):  
Poverty Alleviation ◽  
The State ◽  
Community Management ◽  
Phenomenological Method ◽  
Unit Of Analysis ◽  
The Poor ◽  
Poor Families ◽  
The Subject ◽  
The Village ◽  
Social Phenomenology

The method of social phenomenology is seen as appropriate to describe the dimensions of poverty so that reality will be found in the "Poor Village" of the Village of Fishermen across the country. The intersection between Marxist thinking, Chambers and the phenomenological method lies in the unit of analysis. The unit of analysis in the phenomenology method lies in the subjectivity that leads to things that appear around, so that the facts presented are facts in accordance with what is felt by the subject under study. If it is associated with Marxist perspectives that talk a lot about class, which in other words there are actors or actors in the class. The state provides assistance to poor families as a solution to poverty alleviation, but in reality the assistance provided by the State preserves poverty.

scholarly journals Social Versus Financial Performance of Microfinance: Bangladesh Perspective

2018 ◽  
Vol 10 (3) ◽  
pp. 263
Author(s):  
Mohammad Aslam ◽  
Senthil Kumar ◽  
Shahryar Sorooshian
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Financial Institution ◽  
Panel Data Analysis ◽  
Poor People ◽  
Financial Sustainability ◽  
The Poor ◽  
Social Objective ◽  
The Relationship

Microfinance is a tool designed for poverty alleviation by providing financial services more specifically small credit to the poor household for income generating activities. One of the better ways to help poor people for poverty alleviation is through giving them financial services that cannot be done in traditional banking system. However, there is a big question whether it is possible to provide those services for a financial institution without being sustainable financially. How far it can go with free lunch that is depending on donors’ fund. These two patterns place microfinance at the intersection. One may wonder whether the microfinance compromises a trade-off between serving the poor as social objective and attaining financial sustainability as financial objective. If microfinance institute wishes to get financial sustainability through profit maximization rather ignoring intended social objective of alleviating poverty, than it loses its momentum and becomes like other traditional financial institute. Fulfilling social objective with financial sustainability will be the optimum outcome of microfinance. Microfinance has been pioneered primarily in Bangladesh and later replicated in rest of the world. By this time, over 33 million of clients are being served with various financial and non-financial services by over 700 registered microfinance institute in Bangladesh. This study intent to measure the social outreach versus financial sustainability of microfinance institute in Bangladesh through panel data analysis. To do this, we have analyzed the relationship between financial performance and depth of outreach of top 20 microfinance institutes of Bangladesh from 2015 to 2017. Our results show that the relationship is positive or neutral in some cases. Therefore, microfinance in Bangladesh has been attaining both social and financial objectives and there appears no mission drift.

scholarly journals The Formation Mechanism and Precision Control of Corruption in Poverty Alleviation from the Perspective of System Dynamics

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Yan Zheng ◽  
Xiaoming Liao
Keyword(s):  
System Dynamics ◽  
Survey Data ◽  
Formation Mechanism ◽  
Poverty Alleviation ◽  
Poor People ◽  
Precision Control ◽  
The Poor ◽  
Prevention System ◽  
The Government ◽  
Control Of Corruption

The corruption in the field of poverty alleviation not only hinders the performance of the government but also damages the vital interests of the poor, harms the image of the party and the country, and makes the poor people further impoverished. Based on the method of system dynamics, this paper analyzes the interaction of elements which influence village officials’ corruption, studies the formation mechanism of the corruption in poverty alleviation, and constructs an effective model to prevent the corruption. Based on the survey data of typical cases, the model was simulated and validated by the software of Vensim PLE. The study found that compared with other variables, the willingness of village officials to corrupt has the greatest impact on the amount of their corruption. Furthermore, it is found that the important factors that affect village officials’ corruption willingness are as in the following order: official culture, village officials’ thought, and prevention system.

scholarly journals The Equity and Efficiency of Microfinance

2010 ◽  
Vol 3 (1) ◽  
pp. 11-17
Author(s):  
Mahazarin Kanga ◽  
Juhi Bansal ◽  
Siddharth Verma ◽  
Ishani Bandaranayake
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Social Benefits ◽  
Poor People ◽  
Microfinance Institutions ◽  
The Poor ◽  
Equity And Efficiency ◽  
Social Opportunities ◽  
The Common ◽  
Global Population

Banks are for people with money rather than for people without money. However, microfinance is banking for the unbankables. It brings credit, loan, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular banks, i.e. almost 60-90% of the global population. It is one of the most intriguing features of financial economics today. In the aftermath of the 2006 Nobel Peace Prize being awarded to the Bangladeshi, Mohammed Yunus, who is a champion of the cause for microcredit, the common presumption has been that microfinance create s undeniable social benefits such as poverty alleviation and more equal social opportunities. Indeed, this is true to a large extent; however, less acknowledged are the problems that lurk behind this facade of ‘social service’. Donning the caps of economists, this pa per discusses the economic rationality of microfinance as an effective tool for achieving poverty alleviation. We ask the question on whether the theoretical objective of microfinance for ‘helping the poor’ is sullied in practice by rent seeking, profit seeking and corruption. We assess the fundamental economic model for the basis on which Microfinance Institutions (MFIs) provide loans to the poor and as whether the poor people eventually benefited from this financial innovation.

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