TITLE:
Microcredit in Bangladesh: Impact on Borrowers’ Social Mobility Revisited
AUTHORS:
Ashfaq Ferdous, Salma Begum, Jannaty Akter
KEYWORDS:
Microcredit, Social Mobility, Impact, Socio-Economic, Class Position
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.7,
July
17,
2020
ABSTRACT: In Bangladesh,
microcredit program has been in function for almost half a century. Though popularly
termed as a tool for poverty alleviation and women empowerment, criticism about
microcredit program’s actual effectiveness isn’t new. This study attempts to evaluate
the impact of such programs by measuring borrowers’
social mobility. Using a multidimensional approach, different associated
indicators were taken into account for measurement. Quantitative method was used.
Based on a non-probability sampling, 107 microcredit borrowers were selected for
conducting interview schedules. Statistical analysis
of data reveals that those who have been taking loans for several number
of years have all managed to increase their income level to a variety of extent,
but only those have gained some sort of mobility who have been taking loans for
more than 4 - 5 years and have taken 5 times or more. Few of them have actually moved from microcredit to become a microfinance
client by taking bigger amount of loans and having savings. Positive responses
about the indicators being used in the study
were found among the handful of those who have mobilized significantly. In
true sense, most of the borrowers are stuck at the bottom end of socio-economic
ladder and are struggling to manage a better living standard.