Microfinance for Poverty Alleviation

The book examines the poverty alleviation capacity of microfinance program in Bangladesh. It reveals that conventional NGOs and Microfinance Institutes (MFIs) are not doing exactly what they are publicly claiming. Microfinance is a good business for its providers; but unfortunately, not so for the poor borrowers. The book also argues that microfinance is not an effective tool for poverty alleviation, particularly for the poor with previous indebtedness. However, it is capable to reduce the poverty of that group of poor who have achieved a certain economic level. The book shows that a poor borrower can never come out from the vicious circle of poverty or remains indefinitely dependent on the NGO-MFIs for microcredit. Microfinance programs, therefore, only give members a temporary relief from the curse of poverty but eventually make them poorer. The book suggests for amendment of the existing lending and borrowing policies of microfinance addressing the diverse socio-economic developmental needs of the poor. In addition, the book suggests for distribution of sufficient loan with reasonable interest upon providing skill training, ensuring proper monitoring and supervision.

Autorentext

The author is an Associate Professor in the Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh. He was awarded the Japanese MEXT Scholarship and obtained his PhD in Agricultural Economics from the Hiroshima University of Japan in 2010. In addition to teaching, he is engaged with several socio-economic researches.