Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance scheme that offers a flexible repayment schedule and consumption smoothing, as well as production, loans. It targets the ultra-poor, many of whom are also seasonally poor, with a severe inability to smooth consumption during certain months of the year. Besides providing loans, PRIME offers extension and training services. This paper uses a quasi-experimental survey design to evaluate PRIME against regular microfinance programs. The results show that PRIME is more effective than regular microfinance in reaching the ultra-poor, as well as the seasonal poor. PRIME also helps reduce seasonal deprivation and extreme poverty. Although the program has demonstrated its promise, it is too early to conclude whether the accrued benefits are large enough to contain both seasonal and chronic poverty on a sustained basis.

Bibliographic Details

Main Authors:	Khalily, M.A. Baqui, Khandker, Shahidur R., Samad, Hussain A.
Language:	English
Published:	2010-06-01
Subjects:	ACCESS TO FOOD, AGRICULTURAL ACTIVITY, AGRICULTURAL LABORERS, AGRICULTURE, ANTI-POVERTY, ASYMMETRIC INFORMATION, BASIC FOODS, BENEFICIARIES, BETTER ACCESS TO MARKETS, BORROWERS, BUDGET, BUFFER STOCKS, CASH TRANSFERS, CHECK, CHRONIC POVERTY, COLLATERAL, CONSUMPTION DATA, CONSUMPTION INSURANCE, CONSUMPTION SMOOTHING, COUNTERFACTUAL, CREDIT CONSTRAINT, CREDIT MARKET, CREDIT MARKET CONSTRAINTS, CREDIT MARKETS, CREDIT PROGRAM, CREDIT PROVISION, DAILY WAGE, DEFAULT, DEFICITS, DIMENSIONS OF POVERTY, DISCOUNT, DISCOUNT RATE, DIVERSIFICATION, DURABLE, EMPLOYMENT OPPORTUNITIES, EXCHANGE, EXTREME POVERTY, EXTREME POVERTY LINE, FAMINE, FAMINES, FARM SECTOR, FARMERS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FLEXIBLE REPAYMENT, FOOD BASKET, FOOD CONSUMPTION, FOOD COUPONS, FOOD EXPENDITURE, FOOD EXPENDITURES, FOOD INSECURITY, FOOD INTAKE, FOOD ITEMS, FOOD POVERTY, FOOD POVERTY LINE, FOOD PRICES, FOOD SECURITY, FRUITS, FUTURE, GOOD, GOODS, HAZARD, HOLDING, HOUSEHOLD CONSUMPTION, HOUSEHOLD CONSUMPTION PER CAPITA, HOUSEHOLD DISTRIBUTION, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD NEEDS, HOUSEHOLD PARTICIPATION, HOUSEHOLD SURVEY, HOUSEHOLD WELFARE, HUMAN CAPITAL, INCIDENCE OF POVERTY, INCOME, INCOME FLOWS, INCOME-GENERATING ACTIVITIES, INFORMAL CREDIT, INFRASTRUCTURE DEVELOPMENT, INSURANCE, INTEREST, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, LAGGING REGIONS, LAND ASSETS, LANDHOLDINGS, LENDING, LENDING PORTFOLIO, LIQUIDITY, LIQUIDITY CONSTRAINTS, LOAN, LOAN CONTRACTS, LOANS, LOCAL ECONOMIES, LOCAL ECONOMY, LOCAL INFRASTRUCTURE, LONG-TERM INVESTMENTS, MARKET, MEAL, MEASURES, MEAT, MICRO-CREDIT, MICRO-FINANCE, MICROCREDIT, MICROCREDIT PROGRAMS, MICROFINANCE, MICROFINANCE INSTITUTIONS, MILK, MORAL HAZARD, NUTRITION, POLITICAL ECONOMY, POOR, POOR BORROWERS, POOR HOUSEHOLDS, POOR WOMEN, POVERTY INCIDENCE, POVERTY LINES, POVERTY MEASURES, POVERTY PROGRAMS, POVERTY REDUCTION, POVERTY STATUS, PRIVATE INVESTMENTS, PROPERTIES, PROTEIN, PROVISION OF CREDIT, PUBLIC WORKS, PULSES, REAL INTEREST, REAL INTEREST RATE, REGION, REGIONS, REMITTANCE, REMITTANCE SERVICES, REMITTANCES, REPAYMENT SCHEDULE, RETURNS, RICE, RISK POOLING, RURAL, RURAL AREAS, RURAL DEVELOPMENT, RURAL POOR, RURAL POVERTY, RURAL POVERTY RATE, SAFETY NET, SAFETY NETS, SAVINGS, SHARE, SHARES, SMALL FARMERS, STARVATION, STOCK, TARGETING, TRANSFERS, VEGETABLES, WAGE EMPLOYMENT, WELFARE INDICATORS, WFP, WORLD FOOD PROGRAMME,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603164741 https://hdl.handle.net/10986/3817
Tags:	Add Tag No Tags, Be the first to tag this record!