The Impact Of Microcredit On The Social And Economic Conditions Of Borrowers

1804 Words Nov 15th, 2016 8 Pages
Annotated Bibliography
Alam, Md. and Rafiqul Molla. “Inside Productivity of Microcredit in Bangladesh: A Surgical Analysis.” Asian Economic and Financial Review, vol. 2, no. 3, 2012, pp. 478-490. In this paper, Alam and Molla analyze the effects of microcredit on the social and economic conditions of borrowers in Bangladesh. The assessment was conducted by interviewing 555 microcredit borrowers from all over Bangladesh and across several rural and urban districts. In addition, econometric tools have been used to analyze the qualitative data from these interviews, in order to report effective results. The findings reveal that the impact of microcredit on empowering women and creating social change is unclear. To be specific, the research finds that only 11% of female borrowers use the credit by themselves. Due to existing societal norms, the borrowers believe that their husbands are better suited to manage economic operations. Alam and Molla discuss several reasons for borrowers’ dependency on males, including women’s lack of skill in doing business, male dominance in family structures, and the existing social norm that doing business is a man’s job. Alam and Molla’s analysis of the lack of participation of female credit recipients in business operations is relevant to my study of the socio-economic effects of microcredit programs in Bangladesh. To begin with, many researchers and practitioners consider microcredit a strong mechanism to create positive social change by…

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