Can microcredit worsen poverty? Cases of exacerbated poverty in Bangladesh

Jahiruddin, A.T.M., Short, Patricia, Dressler, Wolfram and Khan, M.Adil (2011) Can microcredit worsen poverty? Cases of exacerbated poverty in Bangladesh. Development in Practice, 21 8: 1109-1121. doi:10.1080/09614524.2011.607155

Author Jahiruddin, A.T.M.
Short, Patricia
Dressler, Wolfram
Khan, M.Adil
Title Can microcredit worsen poverty? Cases of exacerbated poverty in Bangladesh
Journal name Development in Practice   Check publisher's open access policy
ISSN 0961-4524
Publication date 2011-01-01
Year available 2011
Sub-type Article (original research)
DOI 10.1080/09614524.2011.607155
Volume 21
Issue 8
Start page 1109
End page 1121
Total pages 13
Place of publication Abingdon, Oxon, United Kingdom
Publisher Routledge
Language eng
Subject 3305 Geography, Planning and Development
3303 Development
Abstract Worldwide, microcredit has been recognised as a successful innovation in poverty alleviation. However, some claim that microcredit exacerbates poverty in developing countries. This study examines cases in Bangladesh where microcredit has actually worsened poverty among borrowers and investigates the underlying reasons for this adverse trend. Our results show that microcredit can exacerbate poverty in four interrelated circumstances. We argue that households living in extreme conditions of poverty who possess minimal or no surplus financial capacity to cope with contingencies are prone to adverse effects of microcredit, and suggest ways to avoid microcredit borrowers falling victims to such unintended consequences.
Keyword Gender and diversity
Labour and livelihoods
South Asia
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Geography, Planning and Environmental Management Publications
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