Description: Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance...

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Bibliographic Details
Main Authors:	Khandker, Shahidur R., Khalily, M.A. Baqui, Samad, Hussain A.
Language:	English
Published:	2012
Subjects:	ACCESS TO FOOD AGRICULTURAL ACTIVITY AGRICULTURAL LABORERS AGRICULTURE ANTI-POVERTY ASYMMETRIC INFORMATION BASIC FOODS BENEFICIARIES BETTER ACCESS TO MARKETS BORROWERS BUDGET BUFFER STOCKS CASH TRANSFERS CHECK CHRONIC POVERTY COLLATERAL CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION SMOOTHING COUNTERFACTUAL CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT MARKETS CREDIT PROGRAM CREDIT PROVISION DAILY WAGE DEFAULT DEFICITS DIMENSIONS OF POVERTY DISCOUNT DISCOUNT RATE DIVERSIFICATION DURABLE EMPLOYMENT OPPORTUNITIES EXCHANGE EXTREME POVERTY EXTREME POVERTY LINE FAMINE FAMINES FARM SECTOR FARMERS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FLEXIBLE REPAYMENT FOOD BASKET FOOD CONSUMPTION FOOD COUPONS FOOD EXPENDITURE FOOD EXPENDITURES FOOD INSECURITY FOOD INTAKE FOOD ITEMS FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FOOD SECURITY FRUITS FUTURE GOOD GOODS HAZARD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD DISTRIBUTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD NEEDS HOUSEHOLD PARTICIPATION HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME FLOWS INCOME-GENERATING ACTIVITIES INFORMAL CREDIT INFRASTRUCTURE DEVELOPMENT INSURANCE INTEREST INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LAGGING REGIONS LAND ASSETS LANDHOLDINGS LENDING LENDING PORTFOLIO LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOANS LOCAL ECONOMIES LOCAL ECONOMY LOCAL INFRASTRUCTURE LONG-TERM INVESTMENTS MARKET MEAL MEASURES MEAT MICRO-CREDIT MICRO-FINANCE MICROCREDIT MICROCREDIT PROGRAMS MICROFINANCE MICROFINANCE INSTITUTIONS MILK MORAL HAZARD NUTRITION POLITICAL ECONOMY POOR POOR BORROWERS POOR HOUSEHOLDS POOR WOMEN POVERTY INCIDENCE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY REDUCTION POVERTY STATUS PRIVATE INVESTMENTS PROPERTIES PROTEIN PROVISION OF CREDIT PUBLIC WORKS PULSES REAL INTEREST REAL INTEREST RATE REGION REGIONS REMITTANCE REMITTANCE SERVICES REMITTANCES REPAYMENT SCHEDULE RETURNS RICE RISK POOLING RURAL RURAL AREAS RURAL DEVELOPMENT RURAL POOR RURAL POVERTY RURAL POVERTY RATE SAFETY NET SAFETY NETS SAVINGS SHARE SHARES SMALL FARMERS STARVATION STOCK TARGETING TRANSFERS VEGETABLES WAGE EMPLOYMENT WELFARE INDICATORS WFP WORLD FOOD PROGRAMME
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603164741 http://hdl.handle.net/10986/3817

Description
Summary:	Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance scheme that offers a flexible repayment schedule and consumption smoothing, as well as production, loans. It targets the ultra-poor, many of whom are also seasonally poor, with a severe inability to smooth consumption during certain months of the year. Besides providing loans, PRIME offers extension and training services. This paper uses a quasi-experimental survey design to evaluate PRIME against regular microfinance programs. The results show that PRIME is more effective than regular microfinance in reaching the ultra-poor, as well as the seasonal poor. PRIME also helps reduce seasonal deprivation and extreme poverty. Although the program has demonstrated its promise, it is too early to conclude whether the accrued benefits are large enough to contain both seasonal and chronic poverty on a sustained basis.

Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

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