Poverty Alleviation with Microfinance: Bangladesh Evidence

Abstract

This study provides evidence of the impact of membership of a microfinance institution (MFI) in Bangladesh on poverty alleviation. Using a quasi-experimental approach with a control group the members of which had never been members of a MFI, interviews with members of a prominent Bangladesh MFI were conducted in relation to their material possessions. In almost every aspect of material well-being, including income, ownership of assets, savings and food intake, members of the MFI are significantly better off than non-members when examined on a univariate basis. In multivariate tests, MFI membership is found to be associated with household income and, further, household wealth, measured in terms of savings, is associated with longer membership of a MFI.

Pathways from women's group-based programs to nutrition change in South Asia: A conceptual framework and literature review

“… Ref. a Country Study design Group targeted b Intervention description Intermediate outcomes reported c Nutritional outcomes reported ( Nair et al, 2017 ) IN RCT BCC group BCC through a facilitated PLA cycle, home visits during pregnancy and early childhood None BMI, MUAC, nutrition wellbeing, diet diversity (woman); birthweight, HAZ, WHZ, WAZ, MUAC, stunting, wasting, underweight, exclusive BF, CF introduction, protein intake, diet diversity, minimum meal frequency (child) ( Harris-Fry et al, 2016 ) BG Quasi-experimental BCC group BCC through a facilitated PLA cycle None Diet diversity (woman) ( Tripathy et al, 2016 ) IN RCT BCC group BCC through a facilitated PLA cycle None Early BF initiation, exclusive BF ( Acharya et al, 2015 ) IN RCT BCC group BCC delivered by health worker on maternal and newborn health None Feeding colostrum, early BF initiation, exclusive BF ( Malapit et al, 2015 ) IN Cross-sectional Multiple/unspecified group NA; only measured impact of group membership Empowerment, production diversity BMI, HAZ, WAZ, WHZ, diet diversity (woman) ( Younes et al, 2015 ) BG Quasi-experimental BCC group BCC through a facilitated PLA cycle None Exclusive BF, diet diversity (child) ( Habib and Jubb, 2015 ) BG Cross-sectional Microfinance group NA; only measured impact of group membership Income Meals consumed per day (woman) ( ...…”

“…In a subsequent study, the authors found that the benefit on energy and protein intake was higher with longer group participation and greater initial poverty ( Deininger and Liu, 2013b ). Likewise, in a study in Bangladesh, compared to members of a microfinance program who had participated for four or eight years, non-participants were less likely to consume three meals per day ( Habib and Jubb, 2015 ).…”

Examining the Trade-off Between Social Outreach and Financial Efficiency: Evidence from Micro-finance Institutions in South Asia

“…On the other hand, MFIs have been successfully working for poverty alleviation over the last few decades (Gonzalez & Rosenberg, 2006;Gutierrez-Nieto, Serrano-Cinca & Molinero, 2009;Habib & Jubb, 2015). Thus, academics and policymakers have been examining the relationship between these two opposite but significant objectives of MFIs operation-financial stability (also known as organizational motive) and depth of social outreach (Hermes, Lensink & Meesters, 2011;Im & Sun, 2015;Lafourcade, Isern, Mwangi & Brown, 2005).…”

Microfinance vs. traditional banking in developing countries

“…Local experiences are, however showing a difficult universal application and what works in Bangladesh (Habib and Jubb, 2015) is not always successful in South America (Washington and Chapman, 2014) or in Sub-Saharan Africa (Moro Visconti, 2012), even if international cross-pollination plays a substantial role.…”