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Microcredit - A More Credible Social than Economic Program in Bangladesh

Author

Listed:
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

  • Molla, Rafiqul Islam

Abstract

Calculated under the framework of economic-profit counting, the productivity of microcredit in Bangladesh is found very low. In this survey about 48% of the borrowers had to compromise their normal wages for self-employed labor to be able to pay the high interest for the credit. Similarly its social productivity is also found marginal. However, about 90% of the borrowers felt comfortable with microcredit even at so high interest rate seemingly to avoid losing or compromising their social and political empowerment at the hands of the local moneylenders or relatives. Borrowers give high value to their socio-political empowerments and are ready to compromise normal wages for their self-employed labor. In the game of political economy of credit for the poor, microcredit is seen as a means of protecting and enhancing sociopolitical empowerments of the low income and distressed people in the society and is appraised as a credible social than economic institution.

Suggested Citation

  • Alam, Md. Mahmudul & Molla, Rafiqul Islam, 2019. "Microcredit - A More Credible Social than Economic Program in Bangladesh," OSF Preprints 27c98, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:27c98
    DOI: 10.31219/osf.io/27c98
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    References listed on IDEAS

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    1. Rafiqul Molla & M. Alam & Abu Wahid, 2008. "Questioning Bangladesh's Microcredit," Challenge, Taylor & Francis Journals, vol. 51(6), pages 113-121.
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    Cited by:

    1. Md. Mahmudul Alam & Rafiqul Islam Molla, 2012. "Inside Productivity of Microcredit in Bangladesh: A Surgical Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(3), pages 478-490.
    2. Mahmudul Alam & Rafiqul Islam Molla, 2012. "Limitations Of Microcredit For Promoting Microenterprises In Bangladesh," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(192), pages 41-54, January –.
    3. Kamaluddin, Amrizah & Hadi, Nabawiyah Abdul & Alam, Md. Mahmudul & Adil, Mohamed Azam Mohamed, 2019. "Social Collateral Model for Islamic Microfinance," SocArXiv ya8ft, Center for Open Science.

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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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