Microcredit: the anti-poverty tool, by Mohammed Azim Hossain
Thursday, June 23, 2005
Bangladesh can play a vital role for the creation of a microcredit environment within the region. Microcredit programmes can also involve: 1) education, 2) social and political awareness, 3) preventive health and nutrition awareness, 4) income generating activities, and 5) local resource mobilisation. It is possible to work with minimal funds if microcredit organisations implement a cost-effective methodology. The immediate impact of the above activities is that: 1) education increased the literacy rate. 2) social and political awareness increased women’s rights and democracy. 3) preventive health and nutrition awareness decreased the numbers of malnourished children and the mortality rate and improved hygiene. 4) self-employment opportunities are created and there is an increase purchasing power, and 5) unutilised money is mobilised from the poor as savings and used in their income-generating activities.
It has been proved that microcredit is a powerful anti-poverty tool that creates faster self-employment and mobilises local resources. Specialised microcredit organisations can play a vital role in building economic cooperation through regionalisation of microcredit programs from the Bangladesh experience. ASA, which is an NGO, has experience replicating its program in Tajikistan, Afghanistan, Jordan, Ethiopia, Indonesia, Myanmar, Yemen, Philippines, Nigeria, Peru, Cambodia, Pakistan and India and other countries.
Regionalising microcredit is a grand way to share experiences globally, utilise the Bangladeshi experience and play a significant role in changing the livelihood of the poorest and alleviating poverty in this region and all over the world.
Opinion found here.
Source: Financial Express