Sign up for our News Bulletin!

Email Us


 
 

Resource Library / Number of Microcredit Clients Crossing the US $1.25 a day Threshold during 1990-2008 Estimates from a nationwide survey in Bangladesh

Author(s):
Sajjad Zohir


The main purpose of this study was to estimate the net number of microcredit client households in Bangladesh that crossed the US$1.25 a day threshold between 1990 and 2008.

It is important to note that the findings in this report were significantly influenced by the period in which the data was collected. In 1998, Bangladesh suffered from what are often described as the most severe floods ever to hit the country. In 2008, a food crisis coupled with political instability in Bangladesh and the global economic crisis led to a general slack in economic activities. All these factors may have led to the depletion of assets that are commonly chosen as proxies to measure poverty status among the very poor in Bangladesh. This in turn may have led to under-estimation of the number of microcredit client households that may have otherwise crossed the threshold.

Key Findings:

* On net, 1.8 million households including 9.43 million household members crossed the US$1.25 threshold between 1990 and 2008.

* Data showed that amongst those taking their first microcredit loan during 1990-1993, 8.94% of client households crossed the US$1.25 threshold by 2008.

* Data showed that amongst those taking their first microcredit loan during 1994-1997, 19.83% of client households crossed the US $1.25 threshold by 2008.

* Data showed that amongst those taking their first microcredit loan during 1998-2002, 0.33% of client households crossed the US $1.25 threshold by 2008.

* Data showed that amongst those taking their first microcredit loan during 2003-2008, 1.84% of client households crossed the US $1.25 threshold by 2008.



Click here to send this document to your Kindle or Kindle App.

Click here to download this document as a PDF


comments powered by Disqus