Submit Manuscript

The International Journal of Applied Economics and Finance

Year: 2007 | Volume: 1 | Issue: 2 | Page No.: 97-104
Facebook Twitter Digg Reddit Linkedin StumbleUpon E-mail

Article Trend

Total views 653

Search

Authors

Saharia Kanak

Yoshiaki Iiguni

Keywords

Research Article

Microfinance Programs and Social Capital Formation: The Present Scenario in a Rural Village of Bangladesh

Saharia Kanak and Yoshiaki Iiguni
Microfinance has been regarded as one of the most viable tools for poverty alleviation and socioeconomic development with developing countries in recent years. Many of the Non-Governmental Organizations (NGOs) in Bangladesh, currently working as Microfinance Organizations (MFOs) - including the Grameen Bank, Bangladesh Rural Advancement Committee (BRAC) and PROSHIKA-have established innovative microfinance programs that have provided financial services to millions of poor people in the country. Although the main focus of all microfinance programs is income-generation for the poor, one of the important outcomes is believed to be the creation of social capital. In this qualitative study, we investigated the present scenario of social capital formation mainly through the microfinance program of BRAC in a rural village of Bangladesh. The study results suggest that a microfinance program does not essentially create effective social capital unless enforced by the microfinance organization. Social capital formation through microfinance programs largely depends on well-designed social capital building strategy of the respective microfinance organization and its actual implementation in the grass-root level.
PDF Fulltext XML References Citation

Leave a Comment

Your email address will not be published. Required fields are marked *