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Rafiqul Islam Molla and Md. Mahmudul Alam
 
''Microcredit - A More Credible Social than Economic Program in Bangladesh''
( 2011, Vol. 31 No.2 )
 
 
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 socio-political empowerments of the low income and distressed people in the society and is appraised as a credible social than economic institution.
 
 
Keywords: Grameen Bank, microcredit, microenterprise, subsistent, poverty alleviation, stereotype, empowerment
JEL: O1 - Economic Development: General
O2 - Development Planning and Policy: General
 
Manuscript Received : Jan 10 2011 Manuscript Accepted : Apr 11 2011

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