Contribution of Grameen Bank Microcredit Program for the Socio-Economic Development of Rural Poor Women

Abstract

The Grameen Bank is a self-sustainable microcredit institution that helps to alleviate poverty by offering small loans to the poorest people in Bangladesh. The Bank aids poverty reduction by targeting villagers who are victims of debt cycles created by village loan sharks and overlooked by commercial lenders. However, village loan sharks are only one of Bangladesh’s underlying causes of poverty that include: Natural disasters: Earthquakes, Typhoons and Cyclones regularly occur. Although the poor can use loans to enrich their daily lives, the absence of strong government policies providing education, healthcare and infrastructure means that underlying causes of Bangladesh’s poverty remain unresolved. I believe that, the Grameen Bank can address some of these criticisms. Grameen can create large-scale poverty alleviation by employing the poor in viable subsidiary companies like Grameen Textile, and training them in marketable skills. The Bank can also work with government agencies and foreign non-profits to expedite education and healthcare services.

Microcredit programs have positive socioeconomic impact on rural women borrowers of Bangladesh. 66% respondents said their economic condition developed than the past, 6% respondents said their social status increased, 20% respondents said they are being self-sufficient and 8% respondents said their lifestyle developed than the past. 48% respondents said they live in their own house, 36% respondents said they live in the rent house, 8% respondents said they live in other relatives shelter and 8% respondents said they live in governments property.