Discussion Week 10 Econ

DISCUSSION WEEK 10 ECON
Name:
Institutional Affiliation:
Date:
Recently, microcredit has become a much-favored intervention for poverty alleviation in the developing countries and least development countries. Different formal financial institutions such as GB have imposed microcredit program in Bangladesh. The major roles of microcredit programs are to increase employment opportunities and to enhance income adequate to improve the poor above the poverty line on a sustainable basis.
Due to microcredit from GB in Bangladesh, the average yearly income of participant households is higher than that of the non-participants. Self-employment activities have more than 50 percent contribution to total income for the participants as against 43 percent in case of non-participants. Besides, nominal household income increased by 19 percent in program villages and by only 13.5 percent in control villages. Compared to non-participants the participant households were better able to survive with flood, maintain their incom...