Impact of microcredit programme on poverty alleviation: A comparative study in Bangladesh and Malaysia

Ferdoushi Ahmed, Chamhuri Siwar

Research output: Contribution to journalArticle

Abstract

Microcredit programmes provide small loans to the very poor in order to undertake self employment and other financial and business activities giving them the ability to care for themselves and their families and thus, achieve a level of independence. Microcredit is also referred to as microfinance and microlending which has demonstrated to be an effective tool in the ongoing struggle against poverty and enables those without access to lending institutions to borrow and start small business. In Bangladesh, the major microcredit programmes engaged by government organizations such as Bangladesh Rural Development Board (BRDB), Grameen Bank (GB), Pallil Karma Sahayak Foundation (PKSF), and Non government organization like Bangladesh Rural Advancement Committee (BRAC), Association for social Advancement (ASA), PROSHIKA, Palli Daridro Bimochon Foundation (PDBF). Among these microcredit programmes, Grameen Bank is a successful model of poverty alleviation in Bangladesh that works in over 81,379 villages, has lent money out to 8.35 million people all over Bangladesh, and 96% of whom are women. The Grameen Bank concept of microcredit has been replicated in more than 60 countries around the world. In Malaysia, with some modification from the Grameen Bank model, the Amanah Ikhtiar Malaysia (AIM) was adopted as a programme to eradicate poverty of the rural poor. The objectives of AIM are to give out benevolent loans to finance income generating activities to the poor households and eventually move out from the poverty group. It is complementary to the Government objective in eradicating poverty amongst the poor households in Malaysia. This paper will compare the microcredit programmes of Grameen Bank Bangladesh and Amanah Ikhtiar Malaysia and assess the impacts on poverty eradication in both countries.

Original languageEnglish
Pages (from-to)2487-2496
Number of pages10
JournalAdvances in Environmental Biology
Volume8
Issue number7
Publication statusPublished - 2014

Fingerprint

Grameen Bank
Bangladesh
poverty alleviation
Malaysia
Poverty
poverty
comparative study
loans
households
self-employment
self employment
microfinance
Small Business
Government Programs
Organizations
rural poverty
small businesses
Social Planning
finance
Aptitude

ASJC Scopus subject areas

  • Agricultural and Biological Sciences(all)
  • Environmental Science(all)

Cite this

Impact of microcredit programme on poverty alleviation : A comparative study in Bangladesh and Malaysia. / Ahmed, Ferdoushi; Siwar, Chamhuri.

In: Advances in Environmental Biology, Vol. 8, No. 7, 2014, p. 2487-2496.

Research output: Contribution to journalArticle

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