Does Microcredit Help Promote Development and Peace at the Household Level in Bangladesh?

Abstract

This paper examines if microcredit for the rural poor in Bangladesh has any instrumental role in achieving development and peace at the household level. This study has been conducted among the microcredit borrowers of the Grameen Bank (GB) and Bangladesh Rural Advancement Committee (BRAC). Structured questionnaires have been used to understand the amount of borrowing and the patterns of use of the loan. Ethnographic case studies are used to explore the ways in which microcredit and its use have impacted on the lives of the borrowers. This study has found out that microcredit has positive impact on the lives of the borrowers. The return from the microcredit investment through small-scale enterprises has contributed towards economic ease of the families, thereby contributing towards less domestic violence, gender equality and peace at the household level. Such findings, however, have yet to be established at the macro societal level through large-scale longitudinal studies.

Keywords: Bangladesh, microcredit, poverty, peace, development