Examining the Success of Microcredit in Bangladesh
Microcredit, which provides small loans to those in poverty, has rapidly increased in third world countries, such as Bangladesh, over recent decades. Muhammad Yunus, who started a lending organization called the Grameen Bank, developed this program in the 1970s. There has been a great amount of success in reaching millions of borrowers, most of whom are women. The loans are often provided to pay for start-up costs of small businesses, and using the money to make money is strongly encouraged. Along with the tremendous success that has been experienced, there have been numerous improvements among the countries that have adopted such microcredit programs,
especially Bangladesh. For example, while poverty is being alleviated, women are also experiencing empowerment. Not only have the lives of women, their families, and communities as a whole improved, but also, such lending programs significantly contribute to society, politics, and the economy. However, it is questioned whether or not microcredit programs have effectively reached the poorest of the poor. This argument is supported by the fact that the extremely poor population is vulnerable, and is being excluded from the vast majority that is able to take advantage of such programs. Nevertheless, the well-being of the poor in general has been greatly influenced by the many positive contributions of these small loans.
Category: Payday loans