| Abstract: |
It is often argued that micro-credit program intervention at the grassroots
level increases the ability of the poor to deal with crises. This paper
examines the relationship between households’ involvement in micro-credit
programs and their capacities to deal with economic hardships by focussing on
BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data
collected in one region of rural Bangladesh, the paper addresses a key
question: Do micro-credit programs increase the ability of the poor to deal
with crises? The findings in this paper indicate that BRAC’s micro-credit
program in Bangladesh may increase participating households’ abilities to cope
with economic hardships but further research to much more systematic
information needs to be conducted about micro-credit program before conclusive
results can be reached. |