Microcredit in Bangladesh ’Helped 10 Million’
Friday, January 28, 2011
Microcredit lifted 10 million Bangladeshis out of poverty between 1990 and 2008, according to a report.
The work of Grameen Bank and others helped many families to raise their income above $1.25 a day, said the US-based Microcredit Summit Campaign.
The study follows recent criticism of microfinance, which works by providing small loans to people to invest in generating their own incomes.
Some experts argue the report may have missed the bigger picture.
They say the success stories are comparatively few compared to the overall number of borrowers.
The report drew on a survey of more than 4,000 households by the Economic Research Group in Dhaka.
Alex Counts of Grameen Bank said: “This survey reminds us that even in difficult circumstances, major progress can be made.”
Floods in 1998 and the food crisis of 2008 caused millions of families to fall below the $1.25 threshold.
However, even with these setbacks, nearly 10 million people rose above the poverty level.