Are Microcredit Participants in Bangladesh Trapped in Poverty and Debt?
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
World Bank, Washington, DC
Resumen
Descripción
This paper addresses whether microcredit
participants in Bangladesh are trapped in poverty and debt,
as many critics have argued in recent years. Analysis of
data from a long panel survey over a 20-year period confirms
this is not the case, although numerous participants have
been with microcredit programs for many years. The results
of the analysis suggest that participants derive a variety
of benefits from microcredit: It helps them to earn income
and consume more, accumulate assets, invest in
children's schooling, and be lifted out of poverty.
This is not to say that non-participants have failed to
progress over the same period. Both participants and
non-participants have gained as the economy has grown;
however, the rates of poverty reduction have been higher for
participants. Testing the net effect of microcredit programs
requires applying an econometric method that controls for
why some households participated and others did not,
conditional on their initial characteristics. In addition,
the method must control for time-varying, unobserved
heterogeneity that affects everyone over time, albeit in
possibly different ways. The paper's econometric
estimates show significant welfare gains resulting from
microcredit participation, especially for women. They also
show that the accrued benefits of borrowing outweigh
accumulated debt. As a result, households' net worth
has increased, and both poverty and the debt-asset ratio
have declined.
Palabras clave
AMOUNT OF LOAN, ASSET HOLDINGS, ASSET RATIO, ASSET RATIOS, ASSET VALUE, AVERAGE DEBT, BANK LOANS, BANK POLICY, BANK RATE, BENEFICIARIES, BIDS, BORROWER, BORROWING, COMMERCIAL BANK, COMMERCIAL BANKS, CONSUMER GOODS, CONSUMPTION EXPENDITURE, CREDIT ACCESS, CREDIT SCORING, CROP PRODUCTION, DEBT, DEBT SERVICING, DEMAND FOR CREDIT, DEPOSITS, DUE DILIGENCE, ECONOMETRIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC POLICIES, EMPLOYMENT, EXPERIMENTAL DESIGN, EXTREME POVERTY, FARM ACTIVITIES, FARM SECTOR, FEMALE PARTICIPATION, FINANCIAL ASSETS, FINANCIAL INSTITUTIONS, FOOD BASKET, FOOD CONSUMPTION, FOOD EXPENDITURE, FOOD EXPENDITURES, FOOD ITEMS, FOOD POLICY, FOOD POVERTY, FOOD POVERTY LINE, GENDER DISPARITY, GLOBAL POVERTY, GROUP LENDING, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD PARTICIPATION, HUMAN CAPITAL, HUMAN CAPITAL INVESTMENT, HUMAN DEVELOPMENT, IMPACT EVALUATION, INCOME, INCOME GENERATION, INDEBTED HOUSEHOLDS, INDEBTEDNESS, INEQUALITY, INFORMAL LENDERS, INTEREST RATES, INTERNATIONAL BANK, INTERVENTION, LAND ASSET, LAND ASSETS, LAND VALUE, LANDHOLDINGS, LEARNING, LENDERS, LIABILITY, LIVING STANDARDS, LOAN, LOAN AMOUNTS, LOAN PORTFOLIO, LONGITUDINAL DATA, MEAT, MICROCREDIT, MICROCREDIT PROGRAMS, MICROENTERPRISE CREDIT, MICROFINANCE, MICROFINANCE INSTITUTIONS, MILK, NONFARM INCOME, NUTRITION, PENSIONS, PER CAPITA INCOME, PERFORMANCE INDICATORS, POLITICAL ECONOMY, POOR, POOR HOUSEHOLDS, POVERTY ALLEVIATION, POVERTY DYNAMICS, POVERTY LINE, POVERTY RATES, POVERTY REDUCTION, POVERTY STATUS, PROGRAM EFFECTS, RATES OF RETURN, REDUCTION IN POVERTY, REMITTANCES, REORGANIZATION, RETURNS, RURAL, RURAL AREAS, RURAL COMMUNITIES, RURAL CREDIT, RURAL DEVELOPMENT, RURAL HOUSEHOLDS, RURAL POVERTY, SAMPLE SIZE, SAVINGS, SAVINGS ACCOUNT, SCHOOL ATTENDANCE, SCHOOLING, SELECTION BIAS, SELF-EMPLOYMENT, SOLVENCY, STOCKS, TOTAL DEBT, TRANSACTION, TRANSPORT, TREATMENT EFFECTS, VEGETABLES, VILLAGE FUND, VILLAGE LEVEL, VULNERABLE GROUPS, WAGE EMPLOYMENT, WAGES, WELFARE INDICATOR, WELFARE MEASURES