NGO in bangladesh
M icrocredit in Bangladesh : Achievements and
Challenges
Dr. Salehuddin Ahmed
Managing Driector
Palli Karma
-
Sahayak Foundation (PKSF)
Bangladesh.
1. Introduction
In recent years, microcredit, in its wider dimension known as microfinance, has become a much f avoured intervention for poverty alleviation in the developing countries and least development countries. There is scarcely a poor country and development oriented donor agency (multilateral, bilateral and private) not involved in the promotion
(in one for m or other) of a microfinance program. Many achievements are claimed about the impact of microfinance programs, and an outside observer can not but wonder at the range of diversity of the benefits claimed.
Although Bangladesh has huge potential for develop ment, it is, for various socio
-
economic reasons, among the poorest countries in the world. About half of the country's population live below the poverty line with 80% in the rural areas. The burden of poverty falls disproportionately on women, who constitu te half of the total population. Logically, therefore, poverty alleviation and creation of rural employment are top priorities in the development agenda of the government of
Bangladesh (GOB) which has adopted a broad
-
based approach to poverty alleviation, emphasizing macroeconomic stability, economic liberalization, and support for a number of government agencies and non
-
government organizations (NGOs). Substantial progress has been made in implementing the microcredit program (MCP), and the scope for its e fficient expansion is enormous.
Money begets money. Adam Smith said “Money, says the proverb, makes money.
When you have got a little, it is often easy to get more.
The great difficulty is to get that little” (“The
Wealth of Nations” 1937, p. 93). It is ve ry difficult for the poor to get small working capital from formal banking system for various reasons. A collateral
Challenges
Dr. Salehuddin Ahmed
Managing Driector
Palli Karma
-
Sahayak Foundation (PKSF)
Bangladesh.
1. Introduction
In recent years, microcredit, in its wider dimension known as microfinance, has become a much f avoured intervention for poverty alleviation in the developing countries and least development countries. There is scarcely a poor country and development oriented donor agency (multilateral, bilateral and private) not involved in the promotion
(in one for m or other) of a microfinance program. Many achievements are claimed about the impact of microfinance programs, and an outside observer can not but wonder at the range of diversity of the benefits claimed.
Although Bangladesh has huge potential for develop ment, it is, for various socio
-
economic reasons, among the poorest countries in the world. About half of the country's population live below the poverty line with 80% in the rural areas. The burden of poverty falls disproportionately on women, who constitu te half of the total population. Logically, therefore, poverty alleviation and creation of rural employment are top priorities in the development agenda of the government of
Bangladesh (GOB) which has adopted a broad
-
based approach to poverty alleviation, emphasizing macroeconomic stability, economic liberalization, and support for a number of government agencies and non
-
government organizations (NGOs). Substantial progress has been made in implementing the microcredit program (MCP), and the scope for its e fficient expansion is enormous.
Money begets money. Adam Smith said “Money, says the proverb, makes money.
When you have got a little, it is often easy to get more.
The great difficulty is to get that little” (“The
Wealth of Nations” 1937, p. 93). It is ve ry difficult for the poor to get small working capital from formal banking system for various reasons. A collateral