Abstract
The paper examines the role of microfinance in poverty
alleviation by focusing on various microfinance programmes in
several countries in Asia, Africa, Latin America and Europe. In
doing so, it also explores the constraints faced by poor people
who want to avail the scheme. Various constraints faced by both
the lender (financial institutions) and the borrower (rural
people) have been appraised including transaction costs, time,
collateral, insufficient or fewer programs, government
intervention or political patronage and social, political and
occupational segmentation of society. Specifically, the study
focuses on the Grameen Bank and Bangladesh Rural
Advancement Committee (BRAC) and how these contribute in
reducing the incidence of poverty in Bangladesh. Innovations
like collateral-free group-based lending of the Grameen Bank
have been widely replicated in other countries. These initiatives
have not only reduced poverty but have also contributed in
improvement in nutrition, better health, and education and
employment opportunities.
Murad Ali , Gohar Saeed, Alam Zeb, Farzand Ali Jan. (2016) Microcredit & its Significance in Sustainable Development and Poverty Alleviation: Evidence from Asia, Africa, Latin America and Europe , The Dialogue, Volume 11, Issue 3.
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