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Financing the Poor: Can Microcredit Make a Difference? Empirical Observations from Bangladesh

Over the last three decades microcredit has gained enormous success in reducing poverty on a global scale. As an efficient financial mechanism, microcredit enables various governmental and non-governmental actors to realise the millennium development goals (MDGs). Based on our recent field-research on microfinance in central Bangladesh, this paper empirically examine and analyse the role of microfinance institutions (MFIs) in promoting rural livelihoods in the country. The study reflects on recent arguments against microcredit and shows that despite some criticisms, microfinance is making significant contribution in uplifting the livelihoods of disadvantaged rural communities.