Role of Microfinance in Poverty Alleviation: Lessons from Experiences in Selected IDB Member Countries
Mohammed Obaidullah, ROLE OF MICROFINANCE IN POVERTY ALLEVIATION: LESSONS FROM EXPERIENCES IN SELECTED IDB MEMBER COUNTRIES, Islamic Development Bank, 2008
92 Pages Posted: 16 Nov 2009
Date Written: May 1, 2007
This study proposes a two-pronged strategy, based on the dichotomy between livelihood and growth enterprises, to alleviate poverty through microenterprise development in member countries of the Islamic Development Bank (IDB).
The paper focuses on the provision of Shariah-compliant financial services to microenterprises. It reviews thematic issues raised through case studies from three IDB member countries - Bangladesh, Indonesia, and Turkey - and draws valuable lessons from them. It examines: Livelihood enterprise financing by MFIs in Bangladesh and its impact on poverty alleviation, focusing on the Rural Development Scheme of the Islamic Bank Bangladesh Limited; Growth enterprise development using both financial and non-financial inputs with special focus on KOSGEB, the small and medium industry development agency of the Turkish government; Financial services approach to microenterprise development in Indonesia and linkages among various components of the financial system at micro, meso and macro levels.
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