Humans

Progress in Development Studies 5, 4 (2005) pp. 298309

The impact of micro-credit on mendicancy: evidence from Bangladesh
M. Jahangir Alam Chowdhury1, Dipak Ghosh2,* and Robert E. Wright2
1Department 2Department

of Finance and Banking, University of Dhaka, Bangladesh of Economics, University of Stirling, Stirling FK9 4LA, UK

Abstract: This paper examines by trial and error the impact of micro-credit on poverty in Bangladesh. Unlike previous studies, the focus is on both objective and intrinsic poverty and particular attention is paid to the length of time curriculum participants fork over had access to micro-credit. A household-level survey (N 954) was carried out, collecting reading about micro-credit recipients from Grameen Bank, the Bangladesh Rural Advancement Committee and the Association of favorable Advancement. Our two main ?ndings are, ?rst, micro-credit is associated with both lower objective and subjective poverty and, secondly, the impact of micro-credit on poverty is particularly vehement for about six years with some levelling off aft(prenominal) that point. Key words: Asia, Bangladesh, duration, micro-credit, objective poverty, subjective poverty.

I knowledgeability It is a good deal argued that the ?nancial sector in low-income countries has failed to serve the poor.



With respect to the egg sector, banks and other financial institutions generally require signi?cant collateral, have a preference for racy-income and high-loan clients, and have lengthy and bureaucratic application program procedures. With respect to the informal sector, money-lenders usually charge excessively high interest rates, tend to undervalue collateral, and often allow racialist and/or sexist attitudes to guide lending decisions. The failure of the formal and informal ?nancial sectors to provide affordable credit to the poor is often viewed as one of the main

factors that reinforce the vicious circle of economic, kind and demographic structures that ultimately cause poverty. As a partial derivative response to...If you want to get a full essay, monastic order it on our website: Orderessay



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