Posted on 14th Oct 2024 09:09:26 PM Geography and Environmental Studies
1.1 Background
For Bangladesh, poverty is a multi-dimensional phenomenon and is related with various issues. In 2004, according to BBS (2004) the incidence of poverty was estimated at 42.1 percent at national level, 43.3 percent in rural areas and 37.9 percent in urban areas. There are some regional variations in the incidence of poverty. It was found that 279 upazilas (61%) have normal distress, 81 have above average distress, 69 have high distress and 31 upazilas have very high distress due to poverty (UNICEF, 1987).
Bangladesh is trying to be a developing country in spite of the burden of excessive population, overwhelming poverty, social inequality and socio-political corruption. Among the multi-dimensional socio-economic problems, Monga is an unwanted situation, which is creating an immense bar to reach an expected level of development. Severe poverty and shortage of food are the regular phenomenon in the Northern part of Bangladesh. This kind of situation, which appears especially in September to November or in Bangla month of Aswin and Kartik is the northern districts of Bangladesh is known as Monga. Monga or seasonal food insecurity is not a new topic in rural Bangladesh, but the topic started to each public interest in the last few years. Pushed by the media, it became the part of political and social debate among the government, opposition parties and also the non-government organization (NGO). Now, Monga has found its way into Bangladesh’s Poverty Reduction Strategy Paper. To the NGOs and other actors in the development process, Monga is now an important concern, for which they collect funds and implement programs.
The new breed of NGOs in developing countries wholly depend upon western fund have links with the policies of the donor countries as now part of the globalization concept. The growth of such NGOs in Bangladesh has been spectacular since the mid-1970s. Since early 1980s, micro-credit operations started getting priority among the major NGOs and by 1990s it became the main focus of most of the sectors. Their models of poverty alleviation include group formation, target group approach, participatory development, and importantly micro-credit. Horizontal expansion as well as qualitative changes in composition characterized the last 30 years of their activities in Bangladesh. But question remains as to the efforts by the larger NGOs administering micro-credit or SME credits for more than two decades in terms of whether the beneficiaries have been able to take-off from their earlier positions to develop themselves to join in the mainstream economic development of the country! (Elahi & Ara, 2008).
1.2 Problem Statement
According to the Human poverty Index (HPI) of 2003, the Monga prone districts have a higher poverty syndrome than other areas of Bangladesh. While the national average HPI is 42.7, the Monga prone districts have more than 50 HPI. It means that the Monga prone districts are more poverty ridden than other parts of Bangladesh (Elahi & Era, 2008). With 78 percent of Bangladesh’s people in poverty and 93.2 million people identified as poor, Bangladesh accounted for 7.2 percent of the world’s poor (UNDP, 1993). This proportion may have increased by 2007-2008. Despite government efforts and implementation of various programs over the last two decades poverty continues to be pervasive and overwhelming (GoB, 1995). Poverty is related with the rural-urban variation and 60 percent of the rural population could be living below the poverty line (Hye, 1996). These conditions are worse in northern part of Bangladesh which make the region most vulnerable.
Since labour is one of the main resources of the agrarian sector of the economy, it is obvious that the progress of the agrarian economy can be attained by optimum utilization of the potentials of unemployed and underemployed people. As the amount of land is very limited compared to surplus labor, creation of self-employment in diversified non-farm activities in the rural sector is very much essential. And this can be achieved by providing monetary and technical supports to rural poor on easy terms. So a suitable financial network is a must for the creation of self-employment opportunity for the rural poor. But the banking sector of Bangladesh is fragile and inefficient in mobilizing financial savings, allocating them to productive uses and promoting discipline in economic activity (WB, 1997).
In the above circumstances, there is an urgent need for separate program for the rural poor to extend a wide variety of financial assistance to them. GB has been established to cater these needs. The main objectives of GB are to provide banking facilities to the poor segment of the country, to eliminate the exploitation of the village money-lenders and to create opportunities to self-employment for the vast unemployed and underemployed labour force by providing credit and other facilities (Uddin, 2000).
1.3 Rationale
Poverty is a great problem of Bangladesh from the very beginning. Micro-credit was started in 19th century in Bangladesh. BRDB gave micro-credit formal structure in 70s decade with the help of government management and patronization for eradicating poverty. The activities of micro-credit were mentionable to include the poor society into developing process through different projects. Later the modern concept of micro-credit was established through Grameen Bank in 1983. Dr. Mohammad Yunus established micro-credit as a development philosophy to make world free from poverty and more than thousands of micro-credit organizations started working in Bangladesh. In this process Bangladesh has become “The Breeding Centre of Micro-credit.” But the poverty level of Bangladesh is still remarkable and micro-credit program under questionable. So the aim of the study is to know how the people of grass root level of Monga affected region are benefited, are being benefited or will be benefited with available micro-credit provided by micro-credit program of Grameen Bank.
1.4 Conceptual Framework
Micro-credit program of GB has taken place in Monga prone region. Mithapukur upazila is one of them. Micro-credit program of GB has done various activities by giving loan for different sectors such as Agriculture, Business, Education, Housing, cottage industry etc. It has both positive and negative impacts.
1.5 Objectives
The general objective of the study is to know the role of micro-credit in the poverty eradication of the study area.
The specific objectives are as follows:
· To know the activities of micro-credit program of GB.
· To analyze the changing socio- economic situation of the micro-credit stakeholders.
· To represent recommendations in order to enhance effectiveness of micro-credit program of GB.
1.6 Scope of the Study
The scope of the research is to discus how micro-credit program of GB plays role to eradicate poverty of the rural poor. Beside that, the study also discus what are the activities of micro-credit program of GB, people’s intention toward it, its uses and influences on livelihood of the stake-holder. Moreover changing socio-economic conditions of GB borrowers of the study area have been observed in this research and on the basis of findings the study has suggested to make GB program effective and to eradicate poverty.
1.7 Limitations
There are some limitations in this research. The limitations of research are below:
· Different governmental and non-governmental micro-credit organizations are working in Monga prone region. To identify the actual role of these organizations a whole study on them could be effective. But in the present study only micro-credit program of GB is considered.
· In the study total Monga prone area was not observed. Only two villages of two union of Mithapukur upazila were selected as the study area.
ABSTRACT
One of the most concerning socio-economic issues which has drawn attention of the economists, social scientists, environmentalists and policy makers in the last couple of decades is the ‘Monga’ syndrome which resulted in long term extreme poverty in many parts of Northern Bangladesh. The present study entitled “Does Microcredit help the Poverty Eradication? An Evidence from Monga Region of Bangladesh” is an empirical study by nature. In the study an attempt has been made to know the activities of Micro-credit program of GB, and its impact on changing socio-economic situation of the micro-credit stakeholders. Moreover, the study represents recommendations in order to enhance effectiveness of micro-credit. To conduct the study two villages of two union of Mithapukur upazila of Rangpur district were selected purposively. For this study GB members of each villages were selected as the respondent randomly and to collect data a detail questionnaire survey was carried out. On the other hand secondary data was collected from different sources such as official documents, articles, journals, books, newspapers etc. After collecting data various descriptive statistical methods like tabulation, percentage, average, pie and bar diagram have been used to analyze data.
The research result indicates that micro-credit program of GB has both positive and negative impacts. Socio-economic condition of GB borrowers has improved some specific sectors such as income, expenditure, type of house, sanitation, ownership of household furniture etc. On the other hand changing condition of GB Borrowers in another sectors like land ownership, ownership of fishery, lighting facilities, medical facilities is not satisfactory.
CONTENTS
Acknowledgement
Abstract
Table of Contents
List of Table
List of Figures
List of Abbreviation
Glossary
CHAPTER 1 : INTRODUCTION
1.1 Background
1.2 Problem Statement
1.3 Rationale
1.4 Conceptual Framework
1.5 Objectives
1.6 Scope of the Study
1.7 Limitations
CHAPTER 2 : LITERATURE REVIEW
2.1 Concept of Monga in Northern Part of Bangladesh
2.1.1 Causes of Monga
2.1.2 Period of Occurrence of Monga
2.1.3 Victims of Monga
2.1.4 Impact of Monga
2.1.5 Some Specific Recommendation to Mitigate Monga
2.2 Poverty
2.3 Micro-credit
2.3.1 History of Micro-credit
2.3.2 Poverty and Micro-credit
2.3.3 Micro-credit in the Developed World
2.3.4 Role of Micro-credit in Developing Countries-a Recent Forbes Ranking
2.3.5 Bangladesh’s Micro-credit
2.4 Micro-credit program of Grameen Bank
2.4.1 A short History of Grameen Bank
2.4.2 Sixteen Decisions
2.4.3 Method of Action
2.4.4 Ten Indicators
CHAPTER 3 : RESEARCH DESIGN AND METHODOLOGY
3.1 Research Types
3.2 Research Design
3.3 Selection of the Study Area
3.4 Sampling Design and Procedure
3.5 Sources of Data and Collection Methods
3.5.1 Secondary data
3.5.2 Primary data
3.6 Data Analysis Techniques
3.6.1 Quantitative Analysis
3.6.2 Mapping Techniques
CHAPTER 4 : DATA INTERPRETATION AND FINDINGS
4.1 General Information of GB Borrowers
4.1.1 Age and Sex based Respondents
4.1.2 Religion based Respondents
4.1.3 Marital Status of Respondents
4.1.4 Educational Qualification of Respondents
4.1.5 Occupation of Respondents
4.2 Information of Borrowers about Micro-credit of GB in the Study Area
4.2.1 Duration of Involvement with GB’s Loan Program
4.2.2 Frequency of Receiving Loan
4.2.3 Amount of Loan
4.2.4 Monthly Interest
4.2.5 Purpose of Receiving Loan
4.2.6 Use of Loan
4.2.7 Deposit by Using Loan
4.2.8. Regularity of Loan Repayment
4.2.9 Causes of Irregular Paying
4.2.10 Way of Paying the Installment
4.2.11 Involvement with other NGOs
4.2.12 Receiving Loan from other NGOs
4.2.13 Amount of Loan from other NGOs
4.2.14 Satisfaction Level
4.2.15 Micro-credit System for Reducing Poverty
4.3 Changes of Socio-economic Condition of GB Borrowers: Before and At present
4.3.1 Monthly Income
4.3.2 Monthly Expenditure
4.3.3 Type of House
4.3.4 Land Ownership
4.3.5 Ownership of Livestock
4.3.6 Ownership of Fishery
4.3.7 Ownership of Household Furniture
4.3.8 Ownership of Household Goods and other Assets
4.3.9 Use of Latrine
4.3.10 Lighting Facility
4.3.11 Source of Drinking water
4.3.12 Medical Facilities
4.3.13 Monthly Cost of Health Service
4.3.14 Monthly Cost of Food Consumption
4.3.15 Monthly Cost of Education
4.4 Information about Family of GB Borrowers
4.4.1 Number of Family Members
4.4.2 Educational Qualification of Family Members
4.4.3 Occupation of Head of the Family
4.5 Findings
CHAPTER 5 : SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of the Study
5.2 Recommendations
5.3 Conclusion
References
Appendices
LIST OF TABLES
1. Geographical indicators of the Monga prone upazilas of Rangpur District, 2001
2. Causes of Monga
3. At a glance Mithapukur upazila
4. Age and Sex based Respondents
5. Religion based Respondents
6. Occupation of Respondents
7. Duration of Involvement with GB’s Loan program
8. Amount of Loan
9. Use of Loan
10. Deposit by using Loan
11. Causes of Irregular Paying
12. Receiving Loan from other NGOs
13. Amount of Loan from other NGOs
14. Monthly Income
15. Monthly Expenditure
16. Type of House
17. Land Ownership
18. Ownership of Cow
19. Ownership of Goat
20. Ownership of Chicken
21. Ownership of Duck
22. Ownership of Fishery
23. Ownership of Household Furniture
24. Ownership of Household Goods and Others Assets
25. Use of Latrine
26. Lighting Facility
27. Medical Facilities
28. Monthly cost of Health Service
29. Monthly cost of Food Consumption
30. Monthly cost of Education
LIST OF FIGURES
1. Conceptual framework of the study
2. Relationship between existing 6 different cropping patterns and period of Monga in Northern Bangladesh
3. Factors of poverty
4. Poverty trap
5. Organizational Chart of GB
6. Administrative Hierarchy of GB
7. Map of the Study Area
8. Sampling Design and procedure
9. Research Design
10. Marital Status of Respondents
11. Educational Qualification of Respondents
12. Frequency of Receiving Loan
13. Purpose of Receiving Loan
14. Regularity of Loan Repayment
15. Way of paying the Installment
16. Involvement with other NGOs
17. Satisfaction Level
18. Micro-credit System for Reducing Poverty
19. Numbers of Family Members
20. Educational Qualification of Family Members
21. Occupation of Head of the Family
LIST OF ABBREVIATIONS
ADA Agriculture Debtors Act
ASA Association of Social Advancement
BARD Bangladesh Academy for Rural Development
BBS Bangladesh Bureau of Statistics
BRAC Bangladesh Rural Advancement Committee
BRDB Bangladesh Rural Development Board
BRRI Bangladesh Rice Research Institution
BUS Bahumukhi Unnayan Sangstha
CARE Co-operation for American Relief Everywhere
GB Grameen Bank
GIS Geographic Information System
GKF Grameen Krishi Foundation
GO/GOB Government Organization/ Government of Bangladesh
HPI Human Poverty Index
IFAD International Fund for Agriculture
IFLA Israel Free Loan Association
IRDP Integrated Rural Development programme
MLA Money Lenders Act
MRI Market Research Institute
NGO Non-Governmental Organization
OMS Open Market Sale
PROSHIKA Prashikhyan Shikha Karma (Training, Education, Work Program)
RDRS Rangpur Dinajpur Rural Service
RDT Rokeya, Diana and Teresa
SDF Social Development Foundation
SME Small and Medium Enterprises
SPSS Statistical Package for Social Scientist
TMSS Thengamara Mohila Sabuj Sangha (Thengamara Women’s Green Association)
UNDP United Nation Development Project
UNICEF United Nations International Children’s Emergency Fund
USA United States of America
VGD Vulnerable Group Development
VGF Vulnerable Group Feeding
WB World Bank
GLOSSARY
Agrahayan : Bangla month (mid-November to mid-December).
Akhira : A river of Mithapukur upazila of Rongpur district.
Aman : A variety of rice.
Ashwin : Bangla month (mid-September to mid-October).
Bayshakh : Bangla month (mid-April to mid-May).
Boro : A variety of rice.
Chaitra : Bangla month (mid-March to mid-April)
Char : Shoal/sandbar or Mid-river island (also some of alluvial deposits along the banks).
Ghaghat : A river of Mithapukur upazial of Rangpur district.
Grameen (Bank) : Grameen means ‘rural’ or ‘village’ in Bangla language
Jamuneshwari : A river of Mithapukur upazila of Rangpur district.
Jobra : A village adjacent to Chittagong University.
Kartik : Bangla month (mid-October to mid-November).
Khash (land) : Without individual Ownership/newly emergent land generally held by the government.
Monga : Monga is a Bangla word that means a famine-like situation, which appears especially in September through November or in Bangla months of Ashin and kartik people usually call the period as Mora kartik, meaning the months of death and disaster (Muhammad, 2006).
Mouza : A Geographically defined land revenue with. It is also the lowest level administrative unit in Bangladesh. Seueral Mouzas comprise of union.
Prakalpa : Project.
Tangail : A district north of Dhaka, the capital city of Bangladesh.
Union : A fourth level administrative unit usually consisting of 12 to 15 villages and/or several Monzas.
Upazila : A third level administrative unit consisting of several unions with an average population of around 20000. A number of Upazilas forms a Zila or District, the second level administrative unit. A number of Zilas form a division, the first level administrative unit. Bangladesh has composed of seven administrative divisions.
Zemindar : The highest level of landlord.
Thesis, Does, Microcredit, Poverty, Eradication, Evidence, Monga, Region, Bangladesh, Mithapukur, Upazila, Rangpur, District, NGOs, GoB, Grameen, Bank, Managing, Directors, Honorable, Noble, Prize, Laureate, Professor, Muhammad, Yunus, University, Economics, Microfinance, Asia, NGO
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