Abstract
The contribution of microfinance in the development of global economy is undoubtedly admissible. The research has been carried out to explore the impact of microfinance on the livelihood of the clients. The study emphasized to detect clear-cut impact of microfinance on poverty eradication, livelihood security, and on the role of Information and Communications Technology (ICT) system on microfinance operations. There are considerable debates about the effectiveness of microfinance as tools for direct reducing poverty. A plenty of researches explore that microfinance has had a significant positive impact in changing livelihood by reducing poverty and it brings a positive shift in attitude towards life and improvement in the standard of living. Clients have been successful to increase their household income, decrease economic vulnerability, and they enjoy better nutrition, health facilities and greater empowerment, gain the opportunity to pursue education, and in some cases, they have been able to wipe out poverty completely. The purpose of this paper is to illustrate the impact of microfinance on the livelihood of poor people especially who participated in microfinance operations. Toward this objective, around 50 research articles have been critically reviewed and tried to extract the findings of the impact of microfinance operations. However, due to page limitations we are unable to provide all our review information. The research also highlights the application of ICT in order to speed up the transaction processes in microfinance operations.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
UNDP, Human Development Report 1991. Oxford University Press, Oxford (1991)
IFAD (1992), cited in Khondkar, M.: Conceptualization of Poverty: The Bangladeshi Rural Women’s Experience. Dhaka University Journal of Business Studies 20(2), 109–136 (1999)
Khondkar, M.: Conceptualization of Poverty: The Bangladeshi Rural Women’s Experience. Dhaka University Journal of Business Studies 20(2), 109–136 (1999)
Platform for Action, Beijing Declaration and Platform for Action adopted by the Fourth World Conference on Women: Action for Equality, Development and Peace, Beijing, United Nations Department of Public Information, New York, USA (1995)
Baru, J.C., Woller, G.M.: Microfinance: A Comprehensive Review of the Existing Literature. Journal of Entrepreneurial Finance and Business Ventures 9(1), 1–26 (2004), http://marriottschool.byu.edu/selfreliance/workingpapers/library/997.pdf
Otero, M.: Bringing Development Back into Microfinance. In: Conference paper on New Development Finance held at the Goethe University in Frankfurt, sponsored by IPC, Ohio State University and the Goethe University (1999), www.helpendpoverty.com/file_download.asp?f=8 (accessed on 22/02/2009)
Banuri, S.: Impact of Microfinance on Poverty, Income Equality and Entrepreneurship. This is a term paper submitted by the author in partial fulfillment for Research design 1, Richardson, Texas (2006), http://www.utdallas.edu/~s6030200/sb_cp6_rd_microfin_pov_122006.pdf (accessed on 13/01/2009)
Choudhury, M.O.: An Impact Assessment of Micro-credit Programs for Rural Women-Experience of Bangladesh. Journal of the Institute of Bankers Bangladesh 48, 1–47 (2001/2002)
Nath, D.K.: Assessment of Microcredit Programme in Bangladesh: Government Sector. In: Ahmed, S., Hakim, M. (eds.) Attacking Poverty with Micro credit, 2nd impression 2004, pp. 49–70. The University Press Limited, Dhaka-1000 (2004)
Swope, T.: Microfinance and Poverty Alleviation (2005), www.rollins.edu/olin/rurj/mpa.pdf (accessed on 17/02/2009)
Sengupta, R., Aubuchon, C.P.: The Microfinance Revolution: An Overview. Federal Reserve Bank of St, Louis Review 90(1), 9–30 (2008)
Wrenn, E.: Microfinance - Literature Review (2005), www.dochas.ie/documents/MicroFinance_literature_review.pdf (accessed on 07/02/2009)
Yunus, M.: Expanding Microcredit Outreach to Reach the Millennium Development Goals: Some Issues for Attention. In: Ahmed, S., Hakim, M.A. (eds.) Attacking Poverty with Micro credit, 2nd impression 2004, pp. 7–22. The University Press Limited, Dhaka-1000 (2004)
Bhatt, N., Tang, S.: Delivering Microfinance in developing countries: Controversies and policy perspectives. Policy Studies Journal 29, 319–333 (2001c)
Hulme, Mosley: Finance Against Poverty London: Routledge (1996), Volume-1 and 2 Interregional Training Seminar Report (1990) on How to Improve Banking for Rural Women, Nicosia, Cyprus, 19-30, MIM, IFAD, INSTRAW (November 1990)
Chowdhury, Mosley, Simaowitz: The Social Impact of Microfinance. Journal of International Development 16(3), 291–300 (2004), www.interscience.wiley.com (accessed on 31/01/2009)
Mahmud, W.: Introduction. In: Ahmed, S., Hakim, M.A. (eds.) Attacking Poverty with Micro credit, 2nd impression 2004, pp. 1–5. The University Press Limited, Dhaka-1000 (2003)
Wright, G.A.N.: Microfinance Systems: Designing Quality Financial Services for the Poor. Zed Books Ltd., London and New York, and The University Press Limited, Dhaka (2000)
Panjaitan-Drioadisuryo, et al.: Gender, Self-Employment and Micro credit Programs: An Indonesian Case Study. The Quarterly Review of Economics and Finance 39, 769–779 (1999)
MkNelly, Dunford: Impact of Credit with Education on Mothers and Their Young Children’s Nutrition (Ghana). Freedom from Hunger Research, Paper No. 4, Davis, CA (1998)
Dum, E.: Microfinance Clients in Lima, Peru: Baseline Report for AIMS Core Impact Assessment. University of Missouri-Columbia (1999), http://www.mip.org (accessed on 10/02/2009)
Khandker, S.R.: Fighting Poverty with Microcredit: Experience in Bangladesh. Oxford University Press, New York (1998)
Setboonsarng, S., Parpiev, Z.: Microfinance and the Millennium Development Goals in Pakistan: Impact Assessment Using Propensity Score Matching. ADB Institute Discussion Paper No. 104 (2008), http://www.adbi.org/discussion-paper/2008/04/18/2526.microfinance.millennium.dev.goals (accessed on 16/02/2009)
Khandker, S.R.: Micro Finance and Poverty – Evidence Using Panel Data from Bangladesh. Policy Research Working Paper, The World Bank (2003)
Goetz, Sengupta: Who Takes the Credit? Gender, Power and Control Over Loan Use in Rural Credit Programmes in Bangladesh. World Development 24(1), 45–63 (1996)
Mina, M.S., Alam, S.S.: Impact of NGO Activities on the Development of Rural Economy of Bangladesh: A case Study. The Journal of Finance and Banking, University of Dhaka 4(1&2), 20–38 (1995)
Rahman, M.M., et al.: Micro-Credit: A Sharp Weapon for Economic Employment of Rural Women. Development Review 13(1&2), 99–105 (2001)
Latif: Micro-credit and Savings of Rural Households in Bangladesh. The Bangladesh Development Studies, vol. XXVII, No-1 (March 2001)
Hishigsuren, G.: Information and Communication Technology and Microfinance: Options for Mongolia, ADB Institute Discussion, Paper No. 42 (February 2006), http://www.adbi.org/files/2006.02.dp42.ict.microfinance.mongolia.pdf (accessed on 7 May, 2009)
Simanowitz, A., Walter, A.: Ensuring Impact: Reaching the Poorest while Building Financially Self-Sufficient Institutions and Showing Improvement in the Lives of the Poorest Women and Their Families. In: Daley-Harries, S. (ed.) Microcredit Summit Campaign. Pathways Out of Poverty, Kumarian, Bloomfield (2002)
Morduch, J.: The Microfinance Promise. Journal of Economic Literature 37(4) (1999), http://links.jstor.org/sici?sici=00220515%28199912%2937%3A4%3C1569%3ATMP%3E2.0.CO%3B2-F (accessed on 09/02/2009)
Cheston, S., Kuhn, L.: Empowering Women Through Microfinance. In: Daley-Harries, S. (ed.) Microcredit Summit Campaign. Pathways Out of Poverty, Kumarian, Bloomfield (2002)
Buss, T.: Microfinance in International Perspective: An Overview of the Issues. Journal of Economic Development (1999), www.spacf.com/sample.html (accessed on 13/01/2009)
Versluysen, E.: Defying the Odds: Banking for the Poor. Kumarian Press, Greenwich (1999)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 ICST Institute for Computer Science, Social Informatics and Telecommunications Engineering
About this paper
Cite this paper
Hossain, A., Hossain, M.K., Rezaul, K.M. (2010). Impact of Microfinance Operations on the Livelihood of the Clients: A Review of the Existing Literature. In: Telesca, L., Stanoevska-Slabeva, K., Rakocevic, V. (eds) Digital Business. DigiBiz 2009. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 21. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-11532-5_19
Download citation
DOI: https://doi.org/10.1007/978-3-642-11532-5_19
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-11531-8
Online ISBN: 978-3-642-11532-5
eBook Packages: Computer ScienceComputer Science (R0)