Women And Microcredit In Rural Bangladesh: An Anthropological Study Of Grameen Bank Lending

The Grameen Bank of Bangladesh has been extending small loans to poor borrowers (primarily women) to promote self-employment and income generation since 1976. The apparent success of the Grameen Bank (that is, recruitment of clients, investment of loans, recovery rates on invested loans and profit margins) has made microcredit a new model for poverty alleviation and sustainable development. Anthropological research results on Grameen Bank lending to women presented in this book, however, illuminates the link between the success of the bank and debt-cycling of borrowers. The priority of earning profits to insure institutional economic viability caused Bank employees at the grassroots level to emphasize increasing the number of loans disbursed and loan recovery. By using the joint liability model of lending, the Bank workers and borrowing peers impose intense pressure on clients for timely repayment. Many borrowers maintain their regular payment schedules, but do so through a process of loan recycling (that is, pay off previous loans with new ones) that considerably increases borrower debt liability. The debt burdens on individual households in turn increase tension and anxiety among household members and produce unintended consequences for many clients.This book examines women borrowers’ involvement with the microcredit program of the Grameen Bank, and the grassroots lending structure of the bank; it illustrates the implications of Grameen lending for the borrowers, their household members and bank workers. The focus of the study is on the processes of village-level microcredit operation; it addresses the realities of the day-to-day lives of women borrowers and bank workers and explains informant strategies for involving themselves in this microcredit scheme. The study is on the power dynamics of everyday lives of informants as they affect women borrowers’ relationships within the household and the loan centers, and bank worker relationships within the loan center and the bank.

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Part 2. Rural Development in Asia Through Micro Credit

Although there are many problems to be addressed, he focuses on these key areas and focus their energy and commitment to programs have a long-term impact in the regions where it operates. With the success of programs implemented in Bangladesh plans GHC Foundation programs to regions of Mongolia to the end of 2011. 

Although microfinance is believable in many ways to alleviate the socio-economic development, there are problems in the system. If the concept is not implemented correctly, the benefits of micro-credit are no longer effective. For example, in many countries, micro-loans without due consideration of the nature of the business, both within the region and profitability, and there is lack of education about the methods and schedules of loan repayment for borrowers. 

More often than not, in many regions of the borrower to use the money for daily expenses, defeating the purpose of income-generating micro-credit, and thus leads to situations of people in more debt. NGOs, government agencies and private institutions to collaborate in hand to these problems and processes of implementation, evaluation and improvement of education in a system of micro-credit in question. The way forward is for organizations like George Haligua Cohen Foundation to continue with determination, with the vision of Dr. Yunus. To create "poverty museums" and build a world free of poverty!

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Part 1. Rural Development in Asia Through Micro Credit

Despite rapid economic growth in developing countries, poverty still seems to be a major concern for the government. While various programs, schemes and subsidies have been introduced over the years, the most successful innovation in micro-finance has been. While micro-credit systems have introduced many years ago, the organization is most successful and recognized the Grameen Bank in Bangladesh, Asia. Its founder, Muhammad Yunus, the visionary and pioneer of microcredit in Bangladesh, the performance for which he was awarded the 2006 Nobel Peace Prize winner His basic idea is to micro-credit housing for people in poverty was then , extended and income to stimulate entrepreneurship. 

Although the greatest success story was the microcredit Grameen Bank, many new financial institutions in industrialized countries these systems are themselves micro-credit in countries where poverty is widespread. ASA in Bangladesh, the Grameen Bank, Jagorani Chakra Foundation, Bangladesh Rural Advancement Committee, Integrated Development Foundation and BURO some of the "Top 50 world's microfinance institutions," the first list of Forbes1 provided. 

Global investors are driven by the dismal situation in the poorest countries and to help launch their initiatives, foundations and institutions, the less fortunate people a better life. As a philanthropist, Dr. George Haligua Cohen. During a business trip to Bangladesh, Dr. Cohen was so Haligua despair of the people after the monsoon floods that hit decided to face an immediate action. He created a foundation called George Haligua Cohen Foundation in 1996. Founded in Bangladesh, is the focus of the GHC Foundation in providing funding for microcredit to improve living standards, provide micro-initiatives to the community and educational programs for the exchange and dissemination of knowledge without boundaries to improve.