ROLE OF MICRO CREDIT IN POVERTY ALLEVIATION

Amina Mushtaq
Submitted in partia !u !i ment "! the requirement !"r the de#ree "! Master "! $usiness Administrati"n

at

Nati"na %ni&ersit' "! M"dern Lan#ua#es Is amabad( Pa)istan *++,

ACKNOWLEDGEMENT
I #rate!u ' a-)n". ed#e the -"ntributi"n "! the residents "! Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria .h" .arm ' pr"&ided me the "pp"rtunit' t" )n". ab"ut their i&es0 I am than)!u t" m' super&is"r Madam Fareeha !"r her -"nstant en-"ura#ement and super&isi"n0

Executive Summary
The stud' tries t" "") at the impa-t "! mi-r" -redit "n the i&es "! the p""r pe"p e0 There are di!!erent &ie.s "n mi-r" -redit as a p".er!u de&e "pment t"" re#ardin# its su--ess in de&e "pin# the i&es "! the p""r and s"me times these &ie.s are -"ntradi-t"r'0 1".e&er p"&ert' is a # "ba issue2 it is a pr"b em that e&en the .ea thiest nati"n is !a-in#0 In this s-enari" -"untr' i)e Pa)istan is !a-in# a #reat -ha en#e t" a e&iate "r redu-e p"&ert' be-ause p"&ert' is be-"min# -ause "! man' pr"b ems i)e sui-ides( i itera-'( unemp "'ment( diseases i)e depressi"n( stress et-0 In "rder t" -"ntr" these diseases !irst .e ha&e t" -"ntr" p"&ert'0 At #"&ernment e&e and a s" at internati"na e&e man' strate#ies are made e&er' da' t" -"ntr" p"&ert'0 $ut n". Dr0 Y"unis #a&e a !"rmu a "! mi-r" -redit that su--ess!u ' ."r)ed in $an# adesh and is n". rep i-ated a "&er the ."r d and a s" in Pa)istan s"2 the purp"se "! the stud' .as t" "bser&e that .hat r" e mi-r" -redit p a's in Pa)istan in p"&ert' a e&iati"n0 The stud' .as -"ndu-ted in !"ur urban s um areas "! Ra.a pindi and Is amabad that are Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria 0 Th"se pe"p e are tar#eted .h" ha&e ta)en mi-r" -redit s" that the -"mparis"n "! i&in# standard be!"re and a!ter use "! mi-r" -redit -an be made and hen-e it -an be seen that( i! there is an' impr"&ement in their i&in# standard a!ter usin# mi-r" -redit "r n"t0 The stud' .as based "n questi"nnaires .hi-h .ere distributed a!ter trans atin# it int" %rdu s" that resp"ndents -an easi ' understand it and !i it a--"rdin# '0 Samp e !"r this sur&e' .as *++ .ith 3+ resp"ndents per area0 The dependent &ariab e ta)en in this stud' is p"&ert' redu-ti"n .here as independent &ariab e is mi-r" -redit and m"deratin# &ariab e is p" iti-a en&ir"nment0 S"me "! the !a-t"rs that sh". p"&ert' redu-ti"n are Trainin# and edu-ati"n( - ean .ater and h'#ieni- en&ir"nment( nutriti"n and adequate !""d( a--"mm"dati"n( in-"me and sa&in#s0 O&era .e -an sa' that trainin# and edu-ati"n( - ean .ater and h'#ieni- en&ir"nment( nutriti"n and adequate !""d( a--"mm"dati"n( in-"me and sa&in#s are imp"rtant !a-t"rs "! p"&ert' redu-ti"n0 $e-ause .hen a pers"n has trainin# and edu-ati"n he -an impr"&e his i&in# standard( i! a pers"n has - ean drin)in# .ater and adequate !""d he

.i be hea th' and -an earn in a better .a' !"r his !ami '( i! his a--"mm"dati"n is better and en"u#h !"r !ami ' members and str"n# en"u#h !"r natura disasters he -an i&e in a better .a'0 And "b&i"us ' i! his earnin# is #""d and en"u#h !"r !ami ' he -an a s" pr"&ide re-reati"na a-ti&ities t" his -hi dren and -an a s" a!!"rd un-ertain e4penses su-h as sudden #uest et- and -an a s" d" sa&in#s !"r !uture( then a these thin#s p"ints t".ards a #""d i!e( a i!e .ith a #""d i&in# standard and a i!e ab"&e p"&ert' ine0 S"2 a ab"&e menti"ned !a-t"rs p a's an imp"rtant r" e in p"&ert' redu-ti"n0 Fr"m data ana 'sis it is -"n- uded that the mi-r" -redit pr"#ram is e!!e-ti&e in #i&in# un emp "'ed pe"p e emp "'ment su-h as ta4i dri&er( sh"p )eeper et- and t" meet sh"rt term needs su-h as return debt ta)en !r"m s"me "ne e se( pa'in# !ee( "perati"n( treatment "! disease et-0 M"st ' b"rr".ers "! Mus im -" "n'( Dh") /a a /han( Sha)ria and Tehmaspabad ha&e used mi-r" -redit t" pur-hase ta4i( se.in# ma-hine and "penin# sma sh"p and impr"&in# a--"mm"dati"n0 $ut mi-r" -redit s'stem is n"t the per!e-t "ne2 it is n"t a rep a-ement !"r 5"bs that are n"t there and s)i s that d" n"t e4ist0 Imp"rtant thin# is t" ma)e them !inan-ia ' stab e( t" brin# them "ut "! the p"&ert' ine and t" ma)e them ab e t" sustain their p"siti"n and impr"&e i&in# -"nditi"n instead "! returnin# ba-) t" the p"&ert' ine0 It -an be d"ne in this .a' that mi-r" -redit instituti"ns -an ma)e -"ntra-t .ith dri&in# -enters that -an #i&in# trainin# t" th"se pe"p e .h" d"n6t )n". dri&in# "n ha ! rate( -"ntra-ts .ith b"utiques -an be made( -"ntra-ts .ith BATA and Unilever -an be made0 In th"se areas .here BATA d" n"t ha&e "ut et( a pers"n -an ta)e mi-r" -redit pur-hase BATA sh"es and -an se them in his area0 Simi ar -"ntra-t -an be made .ith Unilever.

CHAPTER: 1

INTROD CTION

1!1 R"#e "$ micr" cre%it i& '"verty a##eviati"&

Mi-r" -redit Pr"#rams e4tend sma "ans t" &er' p""r pe"p e !"r se !

emp "'ment pr"5e-ts that #enerate in-"me !"r their sur&i&a ( a ".in# them t" -are !"r themse &es and their !ami ies0 De&e "ped "&er the past t.ent' 'ears( mi-r" -redit is n". -"nsidered as "ne "! the m"st e!!e-ti&e t"" s that .e used t" !i#ht p"&ert'0 It is n"t -harit'( but in&estment( and t" understand it .e need t" "") at p"&ert' in the ."r d t"da'0 P"&ert' is a # "ba issue0 Despite -han#es in de&e "pment paradi#ms in the ast ha ! "! the *+th -entur'( the pr"mise t" brin# .e bein# t" a human bein# remained un!u !i ed0 As it stands( m"re than 7++ mi i"n -hi dren "! primar' s-h"" a#e ha&e ne&er stepped inside a - ass r""m( ab"ut *8+++ -hi dren die ea-h da' !r"m ar#e ' pre&entab e ma nutriti"n and disease and m"re than 70* bi i"n pe"p e in the ."r d are stru## in# t" sur&i&e at the mar#in "! human e4isten-e 9"n under a d" ar a da':0 P"&ert' is the pr"b em !"r a the -"untries irrespe-ti&e "! their e&e "! de&e "pment0 It -an be "bser&ed in man' !"rms0 It has b"th in-"me and n"n in-"me dimensi"ns0 It ma' be a a-) "! in-"me "r res"ur-es( a a-) "! -"pin# -apa-it'( a a-) "! basi- human -apabi ities( a a-) "! instituti"na de!enses "r in e4treme -ases a a-) "! a "! these0 In a .ider sense( it ma' be a -"mbinati"n "! e-"n"mi-( s"-ia and p" iti-a depri&ati"ns0 In -"nsiderati"n "! p"&ert' ine( pe"p e in ea-h -"untr' -an br"ad ' be di&ided int" t." -ate#"ries name ' p""r and n"n p""r0 The n"n p""r are i&in# ab"&e and the p""r are i&in# be ". the p"&ert' ine0 The p""r ma' be di&ided int" destitute ;$"tt"m 7+ per-ent be ". the p"&ert' ine<( e4treme p""r ;th"se in the b"tt"m 7+ t" 3+ per-enti e "! h"useh" ds be ". the p"&ert' ine<( and m"derate p""r ;th"se t"p 3+ per-ent "! h"useh" ds i&in# be ". the p"&ert' ine are m"derate p""r<0 A !urther -ate#"r' "! &u nerab e n"n p""r ma' a s" be re-"#ni=ed .h" ma' s ip int" -ate#"r' "! p""r an'time0 The t"" that is bein# used t"da' in "rder t" a e&iate p"&ert' is mi-r" !inan-e0 The main purp"se "! mi-r"!inan-e is t" brea) the &i-i"us -ir- e "! > ". in-"me ". in&estment? ". pr"!it6 b' insertin# -apita !r"m "utside int" the

e-"n"mi- i!e "! p""r pe"p e0 A--"rdin# t" Adam Smith 9M"ne'( sa's the pr"&erb( ma)es m"ne'0 @hen '"u ha&e #"t a itt e( it is "!ten eas' t" #et m"re and the #reat di!!i-u t' is t" #et the itt e: ;Adam Smith( 78AB( 8A<0 Mi-r"!inan-e pr"&ides 9the itt e: m"ne' .here e&en there is t"ta absen-e "! -apita "r pr"!it as i&in# is based "n subsisten-e "n '0 Thus mi-r"!inan-e see)s t" impr"&e the -"nditi"n "! the p""r b' raisin# in-"me and pr"!it( thereb' ma)in# pe"p e !ree !r"m p"&ert' and impr"&in# i&in# standard0 Its )e' !eature is brin#in# the ban) ;m"ne'C-apita < t" the p""r .here traditi"na ban)in# s'stem d"es the "pp"site and in&" &es a "t "! bureau-rati-"mp i-ati"ns and hidden -"sts i)e tra&e -"st and s"metimes bribin# the ban) "!!i-ia s0 L"-a m"ne' enders -har#e a &er' hi#h 7+ t" *+ per-ent per m"nth( dependin# "n the seas"na -"nditi"n and re#i"n0 First started as an e4perimenta pr"5e-t b' Dr0 Muhammad Yunus in a &i a#e named D"bra( near Chitta#"n# %ni&ersit' ;.here he .as a pr"!ess"r "! e-"n"mi-s<( in the ate 78B+s( the idea n". #r".n a "&er the ."r d0 The mi-r" -redit pr"#ram .as !irst initiated in 78BE .ith the pr"mise "! pr"&idin# -redit t" p""r pe"p e .ith"ut -" atera ( a e&iatin# p"&ert' and un eashin# human -reati&it' and endea&"r "! p""r pe"p e0 Pr"!ess"r Yunus .anted t" see p"&ert' in the museum in !uture0 In his spee-h at the mi-r"?-redit summit in @ashin#t"n D0C0 in 788B( he -"mpared his dream t" eradi-ate p"&ert' -"mp ete ' !r"m this ."r d .ith the dream "! pe"p e t" ! ' 7++ 'ears a#"0 1e menti"ned that @ri#ht br"thers in 78+A( in their !irst su--ess!u attempt( -"u d sta' in the air "n ' 7* se-"nds and ! ' "n ' 7*+ !eet0 $ut( "n ' a!ter E3 'ears "! the !irst su--ess!u attempt "! @ri#ht br"thers( pe"p e in this ."r d are ab e t" #" t" m""n and -an a s" su--ess!u ' ab e t" -"me ba-) in this ."r d0 Pr"!ess"r Yunus -"mpared his dream( -"mp ete eradi-ati"n "! p"&ert' !r"m this ."r d( .ith the @ri#ht br"thers6 attempt t" ! ' and the !" ".in# su--ess in ! 'in# and a&iati"n0 1e menti"ned that he ."u d a s" be ab e t" #" t" his m""n( P"&ert' !ree ."r d( in 33 'ears time thr"u#h the mi-r" -redit pr"#ram ;Yunus( 788B<0 In -urrent "&er&ie. it has been ab e t" #ain hu#e p"pu arit'( b"th in number "! - ients and "r#ani=ati"ns usin# mi-r"!inan-e( and in rate "! "an return0 @here the traditi"na ban)s did n"t -"nsidered the p""r as "an ."rth' be-ause "! the un-ertaint' "! their returnin# abi it'( Frameen $an) ;the ar#est

mi-r" -redit "r#ani=ati"n "! $an# adesh and 5"int .inner "! the N"be Pea-e Pri=e< has - aimed ar"und 88G returnin# rate0 It is interestin# t" n"te that the main b"rr".ers "! this m"ne' are ."men and this is a p" i-' de-ided b' the $an)0 @"men are re#arded as m"re trust."rth' and ab e t" dea .ith m"ne' m"re s)i !u ' than men and this in turn has ead t" their emp".erment0 The hi#h rates "! "an return ha&e he ped mi-r"!inan-e "r#ani=ati"ns i)e the Frameen $an) t" be-"me se !?re iant ;n"t dependin# "n the d"n"rs an' m"re< and brin# a "t "! pe"p e "ut !r"m the nati"na p"&ert' e&e ;Yunus( *++E<0 In Pa)istan p"&ert' has man' dimensi"ns0 The p""r in Pa)istan ha&e n"t "n ' ". in-"me but the' a s" a-) a--ess t" basi- needs su-h as edu-ati"n( hea th( - ean drin)in# .ater and pr"per sanitati"n0 The atter undermines and imits their -apabi ities( imits their "pp"rtunities t" se-ure emp "'ment( resu ts in their s"-ia e4- usi"n and e4p"ses them t" e4"#en"us sh"-)s0 Then the &i-i"us -'- e "! p"&ert' is a--entuated .hen #"&ernment stru-tures e4- ude the m"st &u nerab e !r"m the de-isi"n ma)in# pr"-ess0 In an era .here p"&ert' and unemp "'ment ha&e been #r".in#( # "ba ' and in Pa)istan in parti-u ar( perhaps due t" the p" i-ies and pr"#rams( .hi-h -" e-ti&e ' de!ine # "ba i=ati"n( pub i- and n"n?#"&ernmenta pr"-esses ha&e set up"n themse &es the tas) "! redu-in# p"&ert' and enhan-in# emp "'ment and the qua it' "! i!e "! the p""r0 Current ' in Pa)istan( a &ariet' "! instituti"ns ran#in# !r"m NFOs t" pri&ate and #"&ernment sp"ns"red rura supp"rt pr"#rams are de i&erin# mi-r"!inan-e ser&i-es t" the p""r0 T." C"mmer-ia ban)s i0e0 First @"men $an) and $an) "! /h'ber are a s" pr"&idin# ines "! -redit !"r the mi-r"!inan-e se-t"r0 In Pa)istan( the p""r usua ' a-quire "ans !r"m in!"rma s"ur-es0 La-) "! in-"me and res"ur-es !"r-e them t" ta)e "ans t" meet basi- ne-essities "! i!e and the hurd e "! -" atera ea&e them at the mer-' "! the in!"rma a&enues0 It is re-"#ni=ed that pe"p e i&in# in p"&ert' are innate ' -apab e "! ."r)in# their .a' "ut "! p"&ert' .ith di#nit'( and -an dem"nstrate -reati&e p"tentia s t" impr"&e their situati"n .hen an enab in# en&ir"nment and the ri#ht "pp"rtunit' e4ists0 It has been n"ted that in man' -"untries "! the ."r d( mi-r"?-redit Pr"#rams( pr"&ide a--ess t" sma -apita s t" pe"p e i&in# in p"&ert' ;Ahmed( *+++<0

1!()r"a% Pr"*#em area

The #reatest -ha en#e that de&e "pin# -"untries i)e Pa)istan is !a-in# is POVERTY0 Ma5"rit' "! p"pu ati"n in Pa)istan is i&in# be ". p"&ert' ine0 This p"&ert' is be-"min# -ause "! se&era pr"b ems i)e sui-ides( -rimes( depressi"n et- in "rder t" -"ntr" these pr"b ems p"&ert' has t" be -"ntr" ed( !"r this purp"se man' strate#ies at #"&ernment e&e and internati"na e&e are made e&er' da'0 Purp"se "! this stud' is basi-a ' t" see h". mi-r" -redit -ust"mers be ie&e that mi-r" -redit has -han#ed their i&es0 In Pa)istan man' mi-r" -redit instituti"ns are pr"&idin# mi-r" -redit !a-i ities0 S"2 in this paper I tried t" see h". mi-r" -redit instituti"ns are a!!e-tin# -"nsumer6s i&in# standard0

1!+ Pr"*#em Stateme&t

Pr"b em statement is a s" "!ten re!erred t"( is a - ear( pre-ise and su--in-t statement "! the questi"n "r issue that is t" be in&esti#ated .ith the #"a "! !indin# an ans.er "r s" uti"n0 1ere in this stud' pr"b em statement isH Impact of micro credit on poverty alleviation

1!, Re-earc. O*/ective

The main purp"se "! the stud' is t" understand the su--ess rate( and the s"-ia and e-"n"mi-a -han#e -reated b' mi-r" !inan-e am"n# the p""r0 I !"und that the issue ma' be appr"a-hed !r"m t." di!!erent an# es0 First ' !r"m the - ients6 perspe-ti&e( that is h". the p""r pe"p e in&" &ed .ith mi-r" -redit 5ud#e the impa-t "! it in their i&es and .hat their understandin# "! de&e "pment #ained b' it is0 It -an a s" be appr"a-hed !r"m the perspe-ti&es "! the "r#ani=ati"ns ."r)in# .ith mi-r" -redit( h". the' see the impa-t "! mi-r" -redit "n these pe"p e6s i&es and h". the' "") at their a-hie&ement0 M' "b5e-ti&e here is t" understand the situati"n "! the - ient6s perspe-ti&e( h". the' per-ei&e mi-r" -redit and h". mi-r" -redit is -han#in# their i&es0

@ith this I a s" tried t" "bser&e the "utrea-h( su--ess and sustainabi it' "! mi-r" -redit pr"#ram !"r the p""r0 I put m' emphasis "n this appr"a-h t" )n". the situati"n !r"m the perspe-ti&e "! the p""r pe"p e be-ause I thin) the s" uti"n sh"u d -"me !r"m th"se pe"p e .h"se i&es are t" be -han#ed0 The' are the "ne .h" -an and sh"u d sh". h". the' .ant t" -han#e their i&es and .hat pr"b ems sh"u d be s" &ed in "rder t" a-hie&e de&e "pment0

1!0 M"tivati"& $"r t.e -tu%y

Inequa it' is in-reasin# ar"und the ."r d .hi e the ."r d appears t" -"me - "ser due t" phen"men"n "! # "ba i=ati"n0 E&en the .ea thiest nati"n has the ar#est #ap bet.een ri-h and p""r0 In su-h s-enari" -"untries i)e Pa)istan is !a-in# a #reat -ha en#e in the !"rm "! p"&ert' be-ause b' the time #ap bet.een ri-h and p""r is in-reasin# da' b' da'0 Ma5"rit' "! p"pu ati"n "! Pa)istan is i&in# at p"&ert' ine "r be ". p"&ert' ine0 A--"rdin# t" a sur&e' ab"ut !i&e mi i"n h"useh" ds in the -"untr' are i&in# be ". p"&ert' ine0 This p"&ert' is a s" be-"min# -ause "! man' pr"b ems that are pre&ai in# in "ur s"-iet' su-h as -rimes( sui-ides( i itera-'( unemp "'ment and diseases i)e depressi"n( an4iet'( stress and man' m"re0 In "rder t" -"ntr" these pr"b ems( !irst p"&ert' sh"u d be -"ntr" ed0 At #"&ernment e&e ( man' strate#ies are made e&er' da'( ."r d ban) and Internati"na m"netar' !und is a s" ."r)in# !"r this purp"se but n". Dr0 Y"unis #a&e su-h a ."nder!u idea t" a e&iate p"&ert' that rea ' ."r)s in $an# adesh( and is n". ."r)in# a "&er the ."r d i?e Mi-r" Credit0 S"2 I de-ided t" stud' .hat is the R" e "! Mi-r" Credit in P"&ert' A e&iati"n0

1!1 Si2&i$ica&ce "$ t.e -tu%y

Stud' resu ts ."u d be use!u In p" i-' !"rmu ati"n and de-isi"n ma)in# in respe-t "! #"&ernment mi-r" -redit0 T" F"&ernment departments imp ementin# mi-r" -redit pr"#rams0 C"ntribute t" e4istin# b"d' "! iterature and !"rm a basis !"r !urther resear-h0

1!3 Tra&-mi--i"& Mec.a&i-m "$ Micr" cre%it t" P"verty A##eviati"&

Tar#et p""rest se#ment "! s"-iet' In-rease in emp "'ment Rise in in-"me e&e

Mi-r" -redit

$etter nutriti"n

In-rease in trainin# and edu-ati"n

Impr"&ement in a--"mm"dati"n In-rease in sa&in#s

Impr"&ement in i&in# standard In-rease in -"nsumpti"n "! #""ds and ser&i-es A##re#ate demand in-reases In-rease in in&estment and emp "'ment "pp"rtunities A##re#ate supp ' in-reases

E-"n"m' #r".s and p"&ert' de- ines

1!4 Ty'e "$ I&ve-ti2ati"&

There are three t'pes "! in&esti#ati"ns Casua C"rre ati"n Fr"up re!eren-es

1!4!1 Ca-ua#
Casua .a' is that in .hi-h resear-her .ants t" de ineate the -ause "! "ne "r m"re pr"b ems0

1!4!( C"rre#ati"&
C"rre ati"n is that .a' in .hi-h resear-her is interested in de ineatin# the imp"rtant &ariab es ass"-iated .ith the pr"b em0 This stud' 9R" e "! mi-r" -redit in p"&ert' a e&iati"n: is -"rre ati"na stud'0

1!4!+ Gr"u' Re$ere&ceThis meth"d in- udes ran)s sma er( #reater0

1!5 Exte&t "$ Re-earc.er i&ter$ere&ce 6it. t.e -tu%y

The e4tent "! inter!eren-e b' the resear-her .ith the n"rma ! ". "! ."r) at the ."r)p a-e has a dire-t bearin# "n .hether the stud' underta)en is -asua "r -"rre ati"na 0 A -"rre ati"na stud' is -"ndu-ted in the natura en&ir"nment "! the ."r) p a-e .ith minimum inter!eren-e b' the resear-her .ith the n"rma ! ". "! ."r)0 Th"u#h there is s"me disrupti"n t" the n"rma ! ". "! ."r) in the s'stem as the resear-her administers questi"nnaires at the ."r) p a-e( the resear-her6s inter!eren-e in the r"utine !un-ti"nin# "! the s'stem is minima as -"mpared t" that -aused durin# -ausa studies0

This stud' is -"rre ati"na stud' be-ause m' inter!eren-e in resp"ndents6 r"utine i!e .as ess as I 5ust as)ed them t" !i questi"nnaire0

1!17 Ha## mar8- "$ -cie&ti$ic -tu%y

This stud' is s-ienti!i- stud' as it p"ssess ei#ht ha mar)s "r ei#ht main distin#uishin# -hara-teristi-s e4p ained be ". 7< Purp"si&eness *< Ri#"r A< Testabi it' I< Rep i-abi it' 3< Pre-isi"n and -"n!iden-e E< Ob5e-ti&it' B< Fenera i=abi t' ,< Parsim"n'

1!17!1 Pur'"-ive&e-Purp"si&eness basi-a ' means that stud' sh"u d ha&e de!inite aim and purp"se0 1ere in this stud' purp"se is t" stud' the R" e "! mi-r" -redit in p"&ert' a e&iati"n0

1!17!( Ri2"r
Ri#"r means that the stud' sh"u d ha&e a #""d the"reti-a base and a s"und meth"d" "#i-a desi#n0 This stud' a s" has a s"und the"reti-a !rame ."r)0 Variab es ta)en in this stud' are e4p ained be ". The dependent &ariab e in this stud' is P"&ert' redu-ti"n0 Independent &ariab e in this -ase is Mi-r" Credit0 The m"deratin# &ariab e has a -"ntin#ent e!!e-t "n the independent and dependent &ariab es re ati"nship0 In this stud' en&ir"nment is a M"deratin# Variab e0

En&ir"nment is ta)en in a sense that it -"&ers P" iti-a en&ir"nment( it means that .hat are the #"&ernment strate#ies t" redu-e p"&ert' and t" impr"&e i&in# standard "! its pe"p e0 @hat are the ban)s p" i-ies t" redu-e p"&ert'( .hat is the interest rateJ @hat are the -"nditi"ns "n .hi-h ban) is endin# "an t" pe"p e( are -"nditi"ns a--eptab e b' pe"p e( are -"nditi"ns a!!"rdab e b' pe"p eJ

1!17!+ Te-ta*i#ity
C" e-ted data is statisti-a ' ana '=ed b' usin# per-enta#e( !requen-'( ran#e( mean and standard de&iati"n0 1'p"thesis !"rmed are then statisti-a ' tested t" -"me t" )n". .hether h'p"thesis is a--epted "r re5e-ted0

1!17!, Re'#ica*i#ity
Rep i-abi it' means that resear-h -"ndu-ted "n this t"pi- .ith these &ariab es sh"u d #i&e same resu ts a#ain and a#ain0 In dis-ussi"n part it is sh".n that resu ts "! this resear-h is m"st ' same as resear-h "n this t"pi- -"ndu-ted in "ther areas ha&in# same &ariab es( simi ar pr"b ems( simi ar -u ture and simi ar e-"n"mi- p"siti"n su-h as $an# adesh and a s" in "ther parts "! Pa)istan su-h as in n"rthern areas0 I! !urther resear-h "n this t"pi- is -"ndu-ted .ithin Pa)istan ha&in# same &ariab es resu ts ."u d be simi ar0

1!17!0 Preci-i"& a&% C"&$i%e&ce

Pre-isi"n re!ers t" the - "seness "! the !indin#s t" Krea it'K based "n a samp e0 In "ther ."rds( pre-isi"n re! e-ts the de#ree "! a--ura-' "r e4a-titude "! the resu ts "n the basis "! the samp e0 C"n!iden-e re!ers t" the pr"babi it' that "ur estimati"ns are -"rre-t0

1!17!1 O*/ectivity

The -"n- usi"n dra.n thr"u#h the interpretati"n "! the resu ts "! data ana 'sis is "b5e-ti&e0 It is based "n the !a-ts "! the !indin#s deri&ed !r"m a-tua data and n"t "n ".n sub5e-ti&e "r em"ti"na &a ue0

1!17!3 Ge&era#i9a*i#ty
The resu ts "! this stud' -an be app ied in an' "ther area "! Pa)istan0 The su##esti"ns t" ma)e mi-r" -redit m"re e!!e-ti&e -an be app ied n"t "n ' in Pa)istan but a s" abr"ad0

1!17!4 Par-im"&y
Resu ts "! this stud' are simp ' e4p ained and there is n" ambi#uit' "r -"n!usi"n in resu ts0 Simp e an#ua#e is used and resu ts are e4p ained - ear '0

1!11 Hy'"t.etic":%e%uctive met."%

1'p"theti-"?dedu-ti&e meth"d is used t" stud' the R" e "! mi-r" -redit in p"&ert' a e&iati"n0 This meth"d has se&en stepsH 7< Obser&ati"n *< Pre iminar' in!"rmati"n #atherin# A< The"r' !"rmu ati"n I< 1'p"thesi=in# 3< Further s-ienti!i- data -" e-ti"n E< Data ana 'sis B< Dedu-ti"n

1!11!1 O*-ervati"&

Obser&ati"n is the !irst step in .hi-h resear-her "bser&es the pr"b em "r issue0 I "bser&ed the issue "! R" e "! mi-r" -redit in p"&ert' a e&iati"n0

1!11!( Pre#imi&ary i&$"rmati"& 2at.eri&2

I used questi"nnaire t" #ather data !r"m th"se pe"p e .h" ha&e e4perien-ed mi-r" -redit "r are e4perien-in# mi-r" -redit and questi"ns re#ardin# their i&in# standard be!"re and a!ter mi-r" -redit is as)ed s" that an e!!e-ti&e -"mparis"n -an be made "! their i&in# standard be!"re and a!ter use "! mi-r" -redit0

1!11!+ T.e"ry $"rmu#ati"&

The"reti-a !rame ."r) is then !"rmu ated in .hi-h dependent( independent and m"deratin# &ariab es are ta)en0

1!11!, Hy'"t.e-i9i&2
Fr"m the the"ri=ed net."r) "! ass"-iati"ns am"n# the &ariab es -ertain h'p"thesis are !"rmu ated0

1!11!0 ;urt.er -cie&ti$ic %ata c"##ecti"&

In "rder t" ana '=e R" e "! mi-r" -redit in p"&ert' a e&iati"n data "! -ust"mers usin# mi-r" -redit is required but n"t "n ' a!ter use "! mi-r" -redit( data be!"re use "! mi-r" -redit is a s" needed !"r ma)in# -"mparis"n0

1!11!1 Data a&a#y-iC" e-ted data is then ana '=ed usin# Statisti-a Pa-)a#e !"r S"-ia S-ien-es ;SPSS< and #raphs are made "n MS ELCEL0 Statisti-a t"" s are app ied usin# per-enta#e( !requen-'( mean( ran#e and standard de&iati"n0

1!11!3 De%ucti"&
Dedu-ti"n is the pr"-ess "! arri&in# at -"n- usi"n b' interpretin# the meanin# "! the resu ts "! the data ana 'sis0

CHAPTER: (

PRELIMINAR< DETAILS

This -hapter pr"&ides an "&er&ie. "! the the"reti-a ba-)#r"und that pr"&ides the premise "! the stud'0 C"n-epts "! p"&ert'( mi-r" -redit( "b5e-ti&es "! mi-r" -redit( impa-t "! mi-r" -redit ( p"&ert' in Pa)istan( phen"men"n "! p"&ert'( !a-es "! p"&ert'( .a's t" measure the impa-t "! mi-r" -redit "n in-"me and -"nsumpti"ns( The"reti-a !rame ."r)( &ariab es ;Dependent &ariab e( Independent &ariab e and M"deratin# &ariab e<( 1'p"thesis de&e "pment and 1'p"thesis statements0

(!1 Literature Revie6

In Pa)istan p"&ert' has man' dimensi"ns0 The p""r in Pa)istan ha&e n"t "n ' ". in-"me but the' a s" a-) a--ess t" basi- needs su-h as edu-ati"n( hea th( - ean drin)in# .ater and pr"per sanitati"n0 The atter undermines and imits their -apabi ities and their "pp"rtunities t" se-ure emp "'ment( resu ts in their s"-ia e4- usi"n and e4p"ses them t" e4"#en"us sh"-)s0 Then the &i-i"us -'- e "! p"&ert' is a--entuated .hen #"&ernment stru-tures e4- ude the m"st &u nerab e !r"m the de-isi"n ma)in# pr"-ess0 P"&ert' in Pa)istan .as rep"rted at A70,G( .hi-h -"mprises "! **0A8G urban and A,0E3G rura p"pu ati"n in the -"untr'( .hi-h is based "n a&era#e -a "ries inta)e "! *A3+ -a "ries per adu t per da' that .as equa t" Rs0 EB+ per m"nth in 788,?88( and in *+++?+7 m"&ed up t" Rs0 BI, per m"nth ;E-"n"mi- Sur&e' (*++*?+A<0 The phen"men"n "! p"&ert' .as !e t and "bser&ed m"re durin# the de-ade "! 788+s( as the "&era #r".th s ".ed d".n0 @hi e the s ".ed e-"n"mi- #r".th -"ntributed t" p"&ert'( the 9tri-) e d".n e!!e-t: "n-e th"u#ht t" impr"&e i&in# -"nditi"ns( did n"t rea-h the ".est e&e ".in# ar#e ' t" a-) "! a--essibi it' "! instituti"ns( un5ust and n"n?p""r p" i-ies ;@aheed( *++7<0 The ma5"r "b5e-ti&es "! mi-r" -redit s-hemes areH ;7< t" st"p e4p "itati"n "! the p""r -aused b' e4pensi&e in!"rma -redit2 ;*< t" pr"&ide sma "ans t" p""r pe"p e at re ati&e ' ".er -"st as -"mpared t" a--essib e in!"rma "ans2 ;A< t" !inan-e e-"n"mi-a ' and s"-ia ' &iab e pr"5e-ts th"se -ann"t be !inan-ed "ther.ise2 ;I< t" emp".er ."men .ithin h"useh" ds as de-isi"n

ma)ers and in s"-iet' thr"u#h a-ti&e e-"n"mi- parti-ipati"n2 ;3< t" -reate ma4imum emp "'ment "pp"rtunities2 ;E< t" -reate se ! su!!i-ient and se !? emp "'ed pe"p e and the m"st imp"rtant '2 and ;B< t" redu-e p"&ert'( a--e erate #r".th and impr"&e the i&in# standards "n sustainab e basis ;First Muarter ' Rep"rt !"r FY+3 "n R" e "! mi-r" -redit in p"&ert' a e&iati"n<0

P"&ert' has man' !a-es( -han#in# !r"m p a-e t" p a-e and a-r"ss time( and has been des-ribed in man' .a's0 M"st "!ten( p"&ert' is a situati"n( pe"p e .ant t" es-ape0 S" p"&ert' is a -a t" a-ti"n !"r the p""r and the .ea th' a i)e a -a t" -han#e the ."r d s" that man' m"re ma' ha&e en"u#h t" eat( adequate she ter( a--ess t" edu-ati"n and hea th( pr"te-ti"n !r"m &i" en-e( and a &"i-e in .hat happens in their -"mmunities0 P"&ert' amid p ent' is the ."r d6s #reatest -ha en#e0 And it has been re-"#ni=ed that su--ess!u de&e "pment requires a -"mprehensi&e( mu ti!a-eted( and pr"per ' inte#rated mandate0 The stud' a--epts the n". estab ished &ie. "! p"&ert' as en-"mpassin# n"t "n ' ". in-"me and -"nsumpti"n but a s" ". a-hie&ement in s"-ia ;edu-ati"n( hea th( nutriti"n<( p" iti-a ;&"i-e( emp".erment<( and "ther se-t"rs "! human de&e "pment ;Faheem Dehan#ir /han<0 /hand)er ;*+++< -"nsiders sa&in#s as an indi-at"r and !inds that this !a-t"r has an in! uen-e "n eradi-atin# p"&ert'0 1e ar#ues that -redit pr"#rams d" stimu ate sa&in#s be-ause mi-r" -redit b"rr".ers ma)e mandat"r' sa&in#s e&er' .ee)( .hi-h the' are entit ed t" .ithdra. at the end "! their membership0 In additi"n( he !inds mi-r" -redit pr"#ram has a p"siti&e impa-t in #eneratin# n"t "n ' &" untar' sa&in#s but a s" additi"na sa&in#s am"n# the b"rr".ers0 Apart !r"m sa&in#s( it -an be ar#ued that there are "ther !a-t"rs that ma' -"ntribute t".ards eradi-ati"n "! su-h p"&ert'0 F"r e4amp e( in-"me and a--umu ati"n "! assets "! the h"useh" d ma' be -"nsidered as additi"na -ausa !a-t"rs0 It is i)e ' that .ith the intr"du-ti"n "! mi-r" -redit pr"#rams( b"rr".ers ma' ha&e better in-"me( better sa&in#s and m"re assets0 In this ba-)dr"p( it is ne-essar' t" ana '=e h". these mi-r" -redit pr"#rams -an in! uen-e in-"me( sa&in#s and assets !"r the b"rr".ers0

@"r d $an) ;Mi-r" -redit Summit( 788B< - assi!ied the mi-r" -redit pr"#ram in $an# adesh as "ne "! the m"st e!!e-ti&e anti?p"&ert' t"" s !"r the p""rest0 The pr"#ram e4tends sma "ans t" unemp "'ed p""r pe"p e that are n"t ban)ab e0 These indi&idua s a-) -" atera ( stab e emp "'ment and there!"re -ann"t meet e&en the m"st minimum qua i!i-ati"ns t" #ain a--ess t" !"rma -redit0 The d'nami-s "! s"-ia ( e-"n"mi-( p" iti-a ( -u tura and en&ir"nmenta !"r-es -"ntri&e in a manner that it separates the ri-h !r"m the p""r( str"n# !r"m the .ea)( ha&es !r"m the ha&e?n"ts and !a&"r th"se in a better p"siti"n0 The -hemistr' "! s"-i" "#' and the s"-ia !a-t"rs i)e - ass( #ender( ethni-it'( -aste( re i#i"n( a#e( et-0( p a' an imp"rtant r" e in determinin# the a--ess t" and -"ntr" "&er res"ur-es !"r &ari"us #r"ups "! pe"p e in a #i&en s"-iet'0 It is these re ati"nships am"n# pe"p e( their s"-ia stru-tures and instituti"na settin#s( and their a--ess t"( and -"mmands "&er res"ur-e base ;ph'si-a ( human( inte e-tua and s"-ia < and the p" i-' !rame."r) that pr"m"te ;"r hinder< de&e "pment0 These !a-t"rs are a the m"re re e&ant in the -ase "! ."men .h" -arr' the d"ub e burden "! #ender and p"&ert' ;Subrahman'am( *+++<0

Ab"ut 70A bi i"n e4treme ' p""r pe"p e stru## e t" i&e "n ess than N7 a da'0 The' are trapped in p"&ert' s" se&ere( that the' -ann"t adequate ' !eed( - "the( "r she ter themse &es "r their !ami ies0 Stead' 5"bs and in-"me e ude the &er' p""r0 T" #et b'( man' pe"p e ha&e t" -reate and run their ".n tin' businesses "r sma handi-ra!t manu!a-turin# in the unre#u ated( Kin!"rma K se-t"r0 The' mi#ht se pr"du-e at the mar)et( "r shine sh"es( .ea&e mats( "r ba)e bread0 Mi-r"?enterprises ma' be sma ( but their -umu ati&e impa-t is hu#eH dependin# "n the -"untr'( mi-r"?enterprises emp "' an estimated A+?,+ per-ent "! the ."r)in# p"pu ati"n ;Charmes( 788*<0 S"me studies !ind mi-r" -redit a &er' su--ess!u and e!!e-ti&e .a' "! rea-hin# de&e "pment #"a s( .hi e "ther a-)n". ed#e issues su-h as ."men a-)in#

-"ntr" "&er -apita ( -reati"n "! dependen-' !"r the "ans and ser&i-es( n"t rea-hin# the p""rest "! the p""r ;Thente( *++A<0 $esides( rura p" iti-a e-"n"m' "! $an# adesh -"nsists "! - ass re ati"n e4pressed thr"u#h patr"n - ient hierar-hies( .ith p""r and".ner6s share-r"ppers and and ess ab"rs bein# - ass - ients tied indi&idua ' t" patr"ns .h" mi#ht be and".ners( m"ne' enders and emp "'ers( usua ' in -"mbinati"n ;@""d( 788I<0 The imitati"ns "! the !"rma !inan-ia se-t"r and the in!"rma !inan-ia se-t"r in pr"&idin# !inan-ia ser&i-es( espe-ia ' -redit( en-"ura#ed the mi-r"?-redit pr"#ram t" e&" &e0 The mi-r"?-redit pr"#ram .as initiated .ith the "b5e-ti&e "! pr"&idin# p""r pe"p e .ith -redit .ith"ut -" atera 0 The harm"n' am"n# #r"up members( the stri-t dis-ip ine in pr"&idin# -redit and -" e-tin# repa'ments( and super&isi"n "! b"rr".er6s a-ti&ities in the mi-r"?-redit s'stem rep a-ed the pr"&isi"n "! -" atera ( .hi-h is &er' imp"rtant in re-ei&in# -redit !r"m the !"rma !inan-ia se-t"r instituti"ns0 Pr"!ess"r Yunus -a ed the pr"-ess "! substitutin# the pr"&isi"n "! -" atera .ith #r"up harm"n' and "ther aspe-ts "! mi-r"?-redit as >!reein# "! -redit !r"m the b"nda#e "! -" atera ;Yunus( 788B<0 Mi-r" -redit is an enab in#( emp".erin#( and b"tt"ms?up t"" t" p"&ert' a e&iati"n that has pr"&ided -"nsiderab e e-"n"mi- and n"n?e-"n"mie4terna ities t" ".?in-"me h"useh" ds in de&e "pin# -"untries0 $ut there has been a #radua apprehensi"n that mi-r" -redit a "ne is n"t en"u#h0 Mi-r" -redit is n"t a rep a-ement !"r 5"bs that are n"t there( mar)ets that are ina--essib e( "r edu-ati"n and s)i s that d" n"t e4ist0 Mi-r" -redit is indeed an essentia in#redient in the de&e "pment pr"-ess( but n"t the "n ' in#redient ;Faheem Dehan#ir /han<0

Credit -reates "pp"rtunities !"r se !?emp "'ment rather than .aitin# !"r emp "'ment t" be -reated0 It iberates b"th p""r and ."men !r"m the - ut-hes "! p"&ert'0 It brin#s the p""r int" the in-"me stream0 Fi&en the a--ess t"

-redit under an appr"priate instituti"na stru-ture and arran#ement( "ne -an d" .hate&er "ne d"es best and earn m"ne' !"r it0 One -an "&er-"me p"&ert'0 One -an be-"me the ar-hite-t "! "neOs destin' and the a#ent "! -han#e n"t "n ' !"r "neOs !ami ' but a s" !"r the s"-iet' ;10 I0 Lati!ee Frameen Trust<0

It is )n".n that p""r pe"p e i&e in a hi#h ris) and &u nerab e -"nditi"ns0 Their abi it' t" ta)e ad&anta#e "! "pp"rtunities that .i ead t" in-rease their in-"me "r e-"n"mi- status( t" pr"te-t themse &es a#ainst ris)s "! -rises( and t" -"pe .ith these .hen the' "--ur is &er' imp"rtant0 Redu-ti"n "! p"&ert' is part ' a pr"-ess "! in-reasin# in-"me and e-"n"mi- stabi it' .hi-h enab es !u !i ment "! basi- needs and a--ess t" di!!erent )inds "! ser&i-es0 This ma' a s" be underst""d in the !"rm "! de&e "pin# a ran#e "! assets that .i redu-e the &u nerabi it' "! the p""r t" ph'si-a ( e-"n"mi- and s"-ia sh"-)s0 These assets ma' be de!ined as !inan-ia ;in-"me si=e( re#u arit' and se-urit'( sa&in#s( "ans "r #i!ts<( human ;s)i s and )n". ed#e( abi it' t" ."r)( #""d hea th( se !?esteem( bar#ainin# p".er( aut"n"m' and -"ntr" "&er de-isi"ns<( ph'si-a ;h"usin#( and( pr"du-ti&e and n"npr"du-ti&e p"ssessi"ns et-0< and s"-ia ;net."r)s( #r"up and -entre membership( trust based re ati"nship( !reed"m !r"m &i" en-e and .ider a--ess t" s"-iet' and s"-ia instituti"ns ;10 I0 Lati!ee( Frameen Trust<0 There are se&era #""d reas"ns !"r #i&in# "ans e4- usi&e ' t" ."men0 First "! a ( the Frameen $an) aims t" pr"&ide "ans !"r 0the p""rest "! the p""r0 As ."men are am"n# the m"st disad&anta#ed in $an# adeshi s"-iet'( the p""rest "! the p""r are "!ten ."men0 Se-"nd '( "ans #i&en t" ."men seem t" brin# m"re bene!it t" the !ami ' than "ans #i&en t" men0 @"men tend t" use the in-"me #enerated b' the "ans t" pr"m"te their -hi dren0 @e !are rather than !"r radi"s( m"t"r-'- es( #amb in# and t"ba--"( .hi-h is "!ten the -ase .ith "ans #i&en t" men0 Fina '( ."men ha&e pr"&en better -redit ris)s than men ha&e0 The' are ess m"bi e and s"-ia ' m"re &u nerab e than men( and there!"re easier t" app ' pressure t"0 A married ."man !inds it di!!i-u t t" ea&e h"me and de!au tin# "n a "an -"u d dama#e her reputati"n seri"us ' in

the &i a#e0 There!"re( !ema e b"rr".ers #" t" #reat en#ths t" ensure repa'ment "! the "ans ;Rahman( 7888<0 T"da'( the ."r d !a-es the ma5"r -ha en#e "! redu-in# p"&ert'0 O! the ."r d6s si4 bi i"n pe"p e( *0, bi i"n i&e "n ess than * d" ar a da' and 70* bi i"n i&e "n ess than 7 d" ar a da'0 O! these 70* bi i"n( 3++ mi i"n i&e in S"uth Asia0 Fenera Assemb ' "! the %nited Nati"ns has re-"#ni=ed the p"siti&e impa-t "! mi-r" -redit in p"&ert' redu-ti"n0 Mi-r"!inan-e impa-t studies ha&e dem"nstrated thatH

0 Mi-r" !inan-e he ps p""r h"useh" ds meet basi- needs and pr"te-ts

them a#ainst ris)s0 0 The use "! !inan-ia ser&i-es b' ".?in-"me h"useh" ds eads t" impr"&ements in h"useh" d e-"n"mi- .e !are and enterprise stabi it' and #r".th0

0 $' supp"rtin# ."men6s e-"n"mi- parti-ipati"n( mi-r"!inan-e emp".ers ."men( thereb' pr"m"tin# #ender?equit' and impr"&in# h"useh" d .e bein#0

0 The e&e "! impa-t re ates t" the en#th "! time - ients ha&e had a--ess t" !inan-ia ser&i-es0

;First Muarter ' Rep"rt !"r FY+3 "n R" e "! Mi-r" -redit in P"&ert' A e&iati"n<0

A sustainab e mi-r" -redit s'stem in the -"untr' is &ita !"r the "n# term de&e "pment "! mi-r" -redit me-hanism and t" pr"&ide -redit t" the p"&ert' hit p""r pe"p e( espe-ia ' ."men in Pa)istan ;R"shaneh Pa!ar( F"under president "! /ash! !"undati"n<0 A he!t' sum "! "ne tri i"n rupees is required t" e iminate p"&ert' !r"m the -"untr'0 Ten mi i"n h"uses h" ds in Pa)istan needed mi-r" -redit supp"rt and "ne tri i"n rupees are required t" meet the -redit requirements "! the deser&in# pe"p e in the -"untr' .h" d" n"t ha&e a--ess t" sma -redit and i&in# in e4treme p"&ert' -"nditi"ns0 Out "! 7+ mi i"n h"use h" ds at present "n ' BG "! them ha&e #"t mi-r" -redit0 Charit' and mi-r" -redit -"u d n"t #"

t"#ether and a &iab e mi-r" -redit s'stem is the "n ' sustainab e "pti"n t" redu-e p"&ert' and t" e4tend -redit t" the m"ne' ess -"untr' men ;R"shaneh Pa!ar( F"under president "! /ash! !"undati"n<0 Mi-r" -redit ban)in# sh"u d be )i-)ed "!! "n -"mmer-ia basis0 A the human bein#s( in- udin# the p""rest( are end".ed .ith end ess p"tentia and .ith the pr"&isi"n "! !inan-ia supp"rt the p""r pe"p e t"" -an per!"rm better and be-"me respe-tab e members "! the s"-iet' ;R"shaneh Pa!ar( F"under president "! /ash! !"undati"n<0 In the mar)et !"r mi-r"( !inan-e has under#"ne a rapid shi!t in the -"untr'0 There has been a mar)ed in-rease in the number and the t'p" "#' "! p a'ers( parti-u ar ' in terms "! the entr' "! !"ur ne. mi-r" !inan-e ban)s0 1".e&er( despite this ne. de&e "pment( s-a e -"ntinues t" be a ma5"r -ha en#e !"r the mar)et0 An ana 'sis "! the Pun5ab mar)et has re&ea ed that the t"ta number "! p"tentia h"use h" ds that -an a--ess mi-r" !inan-e is ab"ut 30E mi i"n( .ith 70E mi i"n in the urban areas and !"ur mi i"n in the rura areas0 At the same time( the "&era mar)et penetrati"n in the Pun5ab is 7*G( imp 'in# that ,,G "! the mar)et is sti untapped ;R"shaneh Pa!ar( F"under president "! /ash! !"undati"n<0 Mi-r" !inan-e has imp"rtant e-"n"mi- and s"-ia &a ue thus the

instituti"na i=ati"n and de&e "pment "! SMEs and mi-r" !inan-e se-t"r in Pa)istan is an ur#ent need "! the h"ur .hi-h -an ead t".ards 5"b -reati"n( enhan-ement "! -"mpetiti&eness and e4p"rts .hi e pushin# the "&era e-"n"mi- #r".th0 Mi-r" !inan-e re ated !inan-ia ser&i-es and a--ess -an ma)e a steppin# st"ne t".ards up i!tin# in- udin# the b"rr".ers and bene!i-iaries midd e and ".er midd e - asses "! the s"-iet' !"r .h" a--esses t" instituti"na -redit .as &er' imited pre&i"us '0 1".e&er( in Pa)istan( this e-"n"mi- phen"men"n is at initia sta#e .hi-h needs t" be imp emented b' e4tendin# their net."r) !" ".in# the s"-i"?e-"n"mi- #r"und rea ities "! "ur rura and urban s"-iet' ;Erum Paidi<0

Pa)istan has t" "") at mi-r" -redit as it is su--ess!u ' imp emented in "ther parts "! the ."r d0 It then has t" -reate a re#u at"r' en&ir"nment that .i supp"rt and pr"m"te mi-r" -redit "perati"ns0 In man' -"untries these "perate "utside the ban)in# -"ntr" s re#ime and are n"t restri-ted in settin# up entities that enab e su--ess!u "perati"ns0 There are "! -"urse e#a -han#es0 In man' -ases s"-ia -" atera ;a #atherin# "! a #r"up "! pe"p e .h" )n". ea-h "ther and thus pr"&ide suret' "! the endin# b' the mi-r" -redit entit'< "r Fr"up endin# ma' n"t be e#a ' re-"#ni=ed0 In -ertain -ases e&en the mi-r" !inan-e entit' ma' n"t be in a--"rdan-e .ith pre&ai in# ru es0 There!"re the re#u at"r' en&ir"nment has t" pr"&ide !"r this #r".th ;Erum Paidi<0 The Pa)istan Li&in# Standard Measurement Sur&e' ;PSLM< -"ndu-ted durin# *++I?+3 sh".s a sharp de- ine in p"&ert' in-iden-e as su##ested b' !a in# 1ead C"unt Rati" ;1CR<0 The data indi-ates that the number "! p""r ;i?e2 pe"p e ha&in# in-"me be ". the p"&ert' ine "! Rs ,B,0EI per adu t per m"nth< has shrun) b' 7* mi i"n0 Re#i"n .ise data indi-ates that the de- ine in rura p"&ert' m"re pr"!"und ;7*03 mi i"n pe"p e< that the urban de- ine ;80, mi i"n<0Pa)istan6s per!"rman-e in redu-in# p"&ert' -"mpares .e .ith the MDF that has en&isa#ed a 3+G redu-ti"n in the p"&ert' b' *+73 in a--"rdan-e .ith .hi-h the p"&ert' redu-ti"n strate#' paper ;PRSP< has tar#eted t" redu-e the p"&ert' e&e t" *,G b' FY+E ;Erum Paidi<0 The ma5"rit' "! "ur p"pu ati"n is re!erred t" as a #r"up i&in# "n disad&anta#es0 C"mparin# the e-"n"mi- -"nditi"ns "! the past 'ears the in! ati"n rate "! Pa)istan is #r".in# rapid '0 Fr".in# in! ati"n has a s" be-"me "ne "! the bi##est trends in the s"-iet' "! Pa)istan and it is a!!e-tin# n"thin# but the ".er - ass "! Pa)istani s"-iet'0 The ri-h are #r".in# ri-her and "n the "ther side the p""r are be-"min# p""rer0 I! .e "") at the basineeds "! the pe"p e "! Pa)istan( .hat .e e4pe-t !r"m them is( 9!""d( - "thin# and she ter: "r .e -an !"rm di!!erent per-epti"ns "! their basi- needs 95"b( edu-ati"n and uti ities:0 The pr"p"rti"n "! their three basi- needs .ith their three basi- per-ei&ed needs is -ru-ia n"t "n ' !"r the p"&ert' a e&iati"n but a s" !"r risin# standard "! i&in# and e-"n"mi- stabi it' ;Erum Paidi<0

The aim "! mi-r"!inan-e a--"rdin# t" ;Oter"( 7888< is n"t 5ust ab"ut pr"&idin# -apita t" the p""r t" -"mbat p"&ert' "n an indi&idua e&e ( it a s" has a r" e at an instituti"na e&e 0 It see)s t" -reate instituti"ns that de i&er !inan-ia ser&i-es t" the p""r( .h" are -"ntinu"us ' i#n"red b' the !"rma ban)in# se-t"r0 ;Litt e!ie d and R"senber#( *++I< states that the p""r are #enera ' e4- uded !r"m the !inan-ia ser&i-es se-t"r "! the e-"n"m' s" mi-r" !inan-in# Instituti"ns ha&e emer#ed t" address this mar)et !ai ure0 $' addressin# this #ap in the mar)et in a !inan-ia ' sustainab e manner( an mi-r" !inan-in# instituti"n -an be-"me part "! the !"rma !inan-ia s'stem "! a -"untr' and s" -an a--ess -apita mar)ets t" !und their endin# p"rt!" i"s( a ".in# them t" dramati-a ' in-rease the number "! p""r pe"p e the' -an rea-h ;Oter"( 7888<0

;@ri#ht( *+++< states that mu-h "! the s)epti-ism "! mi-r" !inan-in# instituti"ns stems !r"m the ar#ument that mi-r"!inan-e pr"5e-ts 9!ai t" rea-h the p""rest( #enera ' ha&e a imited e!!e-t "n in-"meQdri&e ."men int" #reater dependen-e "n their husbands and !ai t" pr"&ide additi"na ser&i-es desperate ' needed b' the p""r:0 In additi"n( @ri#ht sa's that man' de&e "pment pra-titi"ners n"t "n ' !ind mi-r"!inan-e inadequate( but that it a-tua ' di&erts !undin# !r"m 9m"re pressin# "r imp"rtant inter&enti"ns: su-h as hea th and edu-ati"n0 As ar#ued b' ;Na&a5as et a ( *+++<( there is a dan#er that mi-r"!inan-e ma' siph"n !unds !r"m "ther pr"5e-ts that mi#ht he p the p""r m"re0 The' state that #"&ernments and d"n"rs sh"u d )n". .hether the p""r #ain m"re !r"m mi-r"!inan-e( than !r"m m"re hea th -are "r !""d aid !"r e4amp e0 There!"re( there is a need !"r a -"mbatin# p"&ert'0 ;Ma'"u4( *++7< states that .hi e mi-r"!inan-e has mu-h p"tentia the main e!!e-ts "n p"&ert' ha&e beenH R Credit ma)in# a si#ni!i-ant -"ntributi"n t" in-reasin# in-"mes "! the better? "!! p""r( in- udin# ."men( in&" &ed in mi-r"!inan-e and de&e "pment t" as-ertain .hat e4a-t ' has been the impa-t "! mi-r"!inan-e in

R Mi-r"!inan-e ser&i-es -"ntribute t" the sm""thin# "ut "! pea)s and tr"u#hs in in-"me and e4penditure thereb' enab in# the p""r t" -"pe .ith unpredi-tab e sh"-)s and emer#en-ies0 ;1u me and M"s e' (788E< sh". that .hen "ans are ass"-iated .ith an in-rease in assets( .hen b"rr".ers are en-"ura#ed t" in&est in ".?ris) in-"me #eneratin# a-ti&ities and .hen the &er' p""r are en-"ura#ed t" sa&e2 the &u nerabi it' "! the &er' p""r is redu-ed and their p"&ert' situati"n impr"&es0 ;D"hns"n and R"#a '( 788B< a s" re!er t" e4amp es .hereb' sa&in#s and -redit s-hemes .ere ab e t" meet the needs "! the &er' p""r0 The' state that mi-r"!inan-e spe-ia ists are be#innin# t" &ie. impr"&ements in e-"n"mise-urit'( rather than in-"me pr"m"ti"n( as the !irst step in p"&ert' redu-ti"n as this redu-es bene!i-iaries6 "&era &u nerabi it'0 ;Ch".dhur'( M"s e' and Siman".it= (*++I< ar#ue that i! mi-r"!inan-e is t" !u !i its s"-ia "b5e-ti&es "! brin#in# !inan-ia ser&i-es t" the p""r it is imp"rtant t" )n". the e4tent t" .hi-h its .ider impa-ts -"ntribute t" p"&ert' redu-ti"n0 In the !" ".in# se-ti"ns I .i e4amine the !indin#s !r"m .ider assessments "! mi-r"!inan-e inter&enti"ns at a h"useh" d and -"mmunit' e&e ( t" sh". .hat earnin# -an be #ained .hen impa-t assessments ha&e a br"ad s-"pe "! ana 'sis0 ;Litt e!ie d( Murd"-h and 1ashemi( *++A< state that "ne "! the !irst thin#s that p""r pe"p e d" .ith ne. in-"me !r"m mi-r" enterprise a-ti&ities is t" in&est in their -hi dren6s edu-ati"n0 Studies sh". that -hi dren "! mi-r"!inan-e - ients are m"re i)e ' t" #" t" s-h"" and sta' "n#er in s-h"" than !"r -hi dren "! n"n?- ients0 A#ain( in their stud' "! FOCCAS( - ient h"useh" ds .ere !"und t" be in&estin# m"re in edu-ati"n than n"n - ient h"useh" ds0 Simi ar !indin#s .ere seen !"r pr"5e-ts in Pimbab.e( India( 1"nduras and $an# adesh0 ;Ch".dhur' and $hui'a( *++I< assessed impa-t "! $RAC6s p"&ert' a e&iati"n pr"#ram !r"m a 9human .e ?bein#: perspe-ti&e in a pr"#ram in

$an# adesh .here the' e4amined se&en dimensi"ns "! >human?.e bein#60 The pr"5e-t in- uded the pr"&isi"n "! mi-r"!inan-e and trainin# "! - ients "n human and e#a ri#hts 0The' n"ted that the pr"5e-t ed t" better -hi d sur&i&a rates( hi#her nutriti"na status( impr"&ement in the basi- e&e "! edu-ati"n( and in-reased net."r)in# in the -"mmunit'0 Chi dren "! $RAC - ients su!!ered !r"m !ar ess pr"tein?ener#' ma nutriti"n than -hi dren "! n"n members( and the edu-ati"na per!"rman-e "! $RAC member6s -hi dren .as a s" hi#her than that "! -hi dren in n"n $RAC h"useh" ds0 $RAC member h"useh" ds spent si#ni!i-ant ' m"re "n -"nsumpti"n "! !""d items than p""r n"n?members did and per -apita -a "rie inta)e .as a s" si#ni!i-ant ' hi#her0 1".e&er( ;D"hns"n( *++I< states that ha&in# ."men as )e' parti-ipants in mi-r"!inan-e pr"5e-ts d" n"t aut"mati-a ' ead t" emp".erment2 s"metimes ne#ati&e impa-ts -an be .itnessed0 She re!ers t" in-reased ."r) "ads( in-reased d"mesti- &i" en-e and abuse0 This eads her t" as) a -ru-ia questi"n "! .hether tar#etin# ."men is 5ust an e!!i-ient .a' "! #ettin# -redit int" the h"useh" d( sin-e ."men are m"re i)e ' than men t" be a&ai ab e in the h"me( attend meetin#s( be mana#eab e b' !ie d sta!! and ta)e repa'ment m"re seri"us '( e&en i! the' d" n"t in&est "r -"ntr" the "an themse &esJ Or "n the "ther hand( i! su-h tar#etin# is !u ' 5usti!ied "n the #r"unds "! enhan-in# #ender equit'0 She - aims the ans.er is pr"bab ' s"me.here bet.een the t." a ternati&es0 She ar#ues that mi-r" !inan-in# instituti"ns must ana '=e b"th the p"siti&e and ne#ati&e impa-ts their inter&enti"ns are ha&in# "n ."men( and that mi-r" !inan-in# Instituti"ns need t" ."r) .ith men t" he p pa&e the .a' !"r a -han#e in attitudes t" ."men6s enhan-ed -"ntributi"n t" the h"useh" d0 The impa-t "! mi-r"!inan-e "n p"&ert' a e&iati"n is a )een ' debated issue as .e ha&e seen and it is #enera ' a--epted that it is n"t a si &er bu et( it has n"t i&ed up in #enera t" its e4pe-tati"n ;1u me and M"s e'( 788E<0 1".e&er( .hen imp emented and mana#ed -are!u '( and .hen ser&i-es are desi#ned t" meet the needs "! - ients( mi-r"!inan-e has had p"siti&e impa-ts( n"t 5ust "n - ients( but "n their !ami ies and "n the .ider -"mmunit'0 There is h".e&er a need !"r #reater assessment "! these .ider impa-ts i! the true &a ue "! mi-r"!inan-e t" de&e "pment is t" be underst""d ;P"hir and Matin( *++I<0

C"nsiderab e debate remains ab"ut the e!!e-ti&eness "! mi-r"!inan-e as a t"" !"r dire-t ' redu-in# p"&ert'( and ab"ut the -hara-teristi-s "! the pe"p e it bene!its ;Ch".dhur'( M"s e' and Siman".it=( *++I<0 It is n"t"ri"us ' di!!i-u t t" measure the impa-t "! mi-r"!inan-e pr"#rams "n p"&ert'0 This is s" she ar#ues( be-ause m"ne' is !un#ib e and there!"re it is di!!i-u t t" is" ate -redit impa-t( but a s" be-ause the de!initi"n "! >p"&ert'6( h". it is measured and .h" -"nstitute the >p""r6 9are !ier-e ' -"ntested issues: 0 Carne' ;788,< de!ines a i&e ih""d as -"mprisin# 9the -apabi ities( assets ;in- udin# b"th materia and s"-ia res"ur-es< and a-ti&ities required !"r a means "! i&in#0: Chambers ;788B< states that i&e ih""d se-urit' is 9basi- t" .e ?bein#: and that se-urit' 9re!ers t" se-ure ri#hts and re iab e a--ess t" res"ur-es( !""d( in-"me and basi- ser&i-es0 It in- udes tan#ib e and intan#ib e assets t" "!!set ris)( ease sh"-)s and meet -"ntin#en-ies0: Lindenber# ;*++*< de!ines i&e ih""d se-urit' as 9a !ami '6s "r -"mmunit'6s abi it' t" maintain and impr"&e its in-"me( assets and s"-ia .e ?bein# !r"m 'ear t" 'ear0: C"n-ern a s" state that i&e ih""d se-urit' is m"re than 5ust e-"n"mi- .e ? bein# as the' de!ine i&e ih""d se-urit' as 9the adequate and sustainab e a--ess t" and -"ntr" "&er res"ur-es( b"th materia and s"-ia ( t" enab e h"useh" ds t" a-hie&e their ri#hts .ith"ut underminin# the natura res"ur-e base: ;C"n-ern( *++A<0 Li&e ih""d se-urit' there!"re( i)e p"&ert'( is n"t 5ust ab"ut in-"me( but in- udes tan#ib e and intan#ib e assets( and s"-ia .e bein#0 ;D"hns"n and R"#a '( 788B< state that 9NFOs aimin# !"r p"&ert' redu-ti"n need t" assess the impa-t "! their ser&i-es "n user6s i&e ih""ds0: The' ar#ue that in addressin# the questi"n "! the impa-t "! mi-r"!inan-e( NFOs must #" be'"nd ana '=in# quantitati&e data detai in# the numbers "! users( and &" umes and si=e "! "ans disbursed( t" understandin# h". their pr"5e-ts are impa-tin# "n - ients6 i&e ih""ds0 The' state that the pr"&isi"n "! mi-r"!inan-e -an #i&e p""r pe"p e 9the means t" pr"te-t their i&e ih""ds a#ainst sh"-)s as .e as t" bui d up and di&ersi!' their i&e ih""d a-ti&ities:0 There!"re .hen ana '=in# the impa-t "! mi-r"!inan-e the "&era impa-t "! the

mi-r"!inan-e ser&i-es "n the i&e ih""ds "! the p""r needs t" be ta)en int" -"nsiderati"n0

A i&e ih""d se-urit' appr"a-h a--"rdin# t" C"n-ern ;*++A< aims !"r a h" istiana 'sis and understandin# "! the r""t -auses "! p"&ert' and h". pe"p e -"pe .ith p"&ert'0 The' identi!' i&e ih""d sh"-)s su-h as natura disasters and dr"u#ht( the s"-ia ( p" iti-a and e-"n"mi- -"nte4t( and pe"p e6s i&e ih""d res"ur-es su-h as edu-ati"n and "-a in!rastru-ture as !a-t"rs a!!e-tin# pe"p e6s i&e ih""d se-urit' 0There!"re( .hen ana '=in# the impa-t mi-r"!inan-e is ha&in# "n i&e ih""d se-urit'( as is the "b5e-ti&e "! this dissertati"n( a h" isti- ana 'sis "! pe"p e6s i&e ih""d se-urit' must be -"ndu-ted( rather than 5ust !"-usin# "n the materia Ce-"n"mi- impa-t mi-r"!inan-e is ha&in# "n the i&e ih""ds "! the p""r0 1ea th and edu-ati"n are t." )e' areas "! n"n?!inan-ia impa-t "!

mi-r"!inan-e at a h"useh" d e&e 0 @ri#ht ;*+++< states that !r"m the itt e resear-h that has been -"ndu-ted "n the impa-t "! mi-r"!inan-e inter&enti"ns "n hea th and edu-ati"n( nutriti"na indi-at"rs seem t" impr"&e .here mi-r" !inan-in# instituti"ns ha&e been ."r)in#0 The Resear-h "n the Frameen $an) sh".s that members are statisti-a ' m"re i)e ' t" use -"ntra-epti&es than n"n?members thereb' impa-tin# "n !ami ' si=e0 Litt e!ie d( Murd"-h and 1ashemi ;*++A< a s" a-)n". ed#e the sparse spe-i!i- e&iden-e "! the impa-t "! mi-r"!inan-e "n hea th but .here studies ha&e been -"ndu-ted the' -"n- ude( 9h"use h" ds "! mi-r"!inan-e - ients appear t" ha&e better nutriti"n( hea th pra-ti-es and hea th edu-ati"n than -"mparab e n"n?- ient h"useh" ds:0 Am"n# the e4amp es the' #i&e is "! FOCCAS( a %#andan mi-r" !inan-in# instituti"n .h"se - ients .ere #i&en hea th -are instru-ti"ns "n breast!eedin# and !ami ' p annin#0 The' .ere seen t" ha&e mu-h better hea th -are pra-ti-es than n"n?- ients( .ith 83G "! - ients en#a#ed in impr"&ed hea th and nutriti"n pra-ti-es !"r their -hi dren( as "pp"sed t" B*G !"r n"n?- ients ;Litt e!ie d( Murd"-h and 1ashemi( *++A<0

Litt e!ie d( Murd"-h and 1ashemi ;*++A< state that a--ess t" mi-r" !inan-in# instituti"ns -an emp".er ."men t" be-"me m"re -"n!ident( m"re asserti&e( m"re i)e ' t" ta)e part in !ami ' and -"mmunit' de-isi"ns and better ab e t" -"n!r"nt #ender inequities0 1".e&er( the' a s" state that 5ust be-ause ."men are - ients "! mi-r" !inan-in# Instituti"ns d"es n"t mean the' .i aut"mati-a ' be-"me emp".ered0 1u me and M"s e' ;788E< a s" ma)e this p"int .hen the' re!er t" the 9nai&et' "! the be ie! that e&er' "an made t" a ."man -"ntributes t" the stren#thenin# "! the e-"n"mi- and s"-ia p"siti"n "! ."men:0 1".e&er( .ith -are!u p annin# and desi#n ."men6s p"siti"n in the h"useh" d and -"mmunit' -an indeed be impr"&ed0 A--"rdin# t" Litt e!ie d( Murd"-h and 1ashemi ;*++A<( the @"men6s Emp".erment Pr"#ram in Nepa !"und that E,G "! its members .ere ma)in# de-isi"ns "n bu'in# and se in# pr"pert'( sendin# their dau#hters t" s-h"" and p annin# their !ami '( a de-isi"ns that in the past .ere made b' husbands0 ;P"hir and Matin (*++I< state that man' mi-r" !inan-in# instituti"n "ans are used !"r a#ri-u tura pr"du-ti"n( tradin#( pr"-essin# and transp"rt( resu tin# in an in-rease in the use "! a#ri-u tura inputs and in-reased "utput "! a#ri-u tura pr"du-ti"n0 This eads t" enhan-ed emp "'ment "pp"rtunities in these se-t"rs !"r the .ider -"mmunit' and a redu-ti"n in the pri-es "! su-h pr"du-e due t" in-reased supp '0 The' a s" state that tradin# a-ti&ities !inan-ed b' mi-r" !inan-in# instituti"ns -an he p t" estab ish ne. mar)etin# in)s and in-rease the in-"me "! traders( and this -an ead t" redu-ed mi#rati"n due t" in-reased emp "'ment "pp"rtunities and in-reased in-"me ;P"hir and Matin( *++I<0 Fr"m a s"-ia perspe-ti&e( the' state that redu-ed mi#rati"n in-reases !ami ' -"hesi"n and #reat ' -"ntributes t".ards impr"&in# -hi d upbrin#in#0

;P"hir and Matin (*++I< state that the intera-ti"n .ithin mi-r" !inan-in# instituti"n #r"ups -an -reate -"?"perati"n and trust that n"t "n ' !a-i itates the mi-r"!inan-e a-ti&ities( but a s" -"ntributes bene!its be'"nd the ser&i-e pr"&ided( su-h as a #reater sense "! -"mmunit'( trust and re ian-e "n the #r"up in times "! -risis0 These net."r)s -an a' the !"undati"ns !"r "ther

s"-ia -apita de&e "pments in the -"mmunit'0 The' state that e4amp es "! -u tura impa-ts "! s"-ia intermediati"n that a!!e-t the #reater -"mmunit' -"u d be a -han#e in attitude "! s"-iet' t".ards the a--eptab e a#e "! ."men6s marria#e( d"mesti- &i" en-e( d".r'( et-0 Fr"m the ab"&e iterature .e -an -"n- ude that mi-r" -redit is an e!!e-ti&e t"" !"r p"&ert' a e&iati"n but the imp"rtant thin# is that "n ' #i&in# -redit is n"t en"u#h( mi-r" -redit is n"t a rep a-ement !"r 5"bs that are n"t there and s)i s that d" n"t e4ist0 Imp"rtant thin# is t" ma)e them !inan-ia ' stab e( t" brin# them "ut "! the p"&ert' ine and t" ma)e them ab e t" sustain their p"siti"n and impr"&e i&in# -"nditi"n instead "! returnin# ba-) t" the p"&ert' ine0

(!( T.e"retica# ;rame W"r8

A!ter -"ndu-tin# sur&e's( -"mp etin# a iterature re&ie. and de!inin# pr"b em statement( "ne is read' t" de&e "p a the"reti-a !rame ."r)0 A the"reti-a !rame ."r) is a -"n-eptua m"de "! h". "ne the"ri=es "r ma)es "#i-a senses "! the re ati"nships am"n# the se&era !a-t"rs that ha&e been identi!ied as imp"rtant t" the pr"b em0 A!ter the"reti-a !rame ."r) I de&e "ped h'p"thesis t" e4amine .hether the the"r' !"rmu ated is &a id "r n"t0 The h'p"thesis re ati"nships -an there!"re be tested thr"u#h appr"priate statisti-a ana 'sis0

(!+ =aria*#eA &ariab e is an'thin# that -an ta)e "n di!!erin# "r &ar'in# &a ues0 The &a ues -an di!!er at &ari"us times !"r the same "b5e-t "r pers"n( "r at the same time !"r di!!erent "b5e-ts "r pers"ns0

(!+!1 De'e&%e&t =aria*#e

The dependent &ariab e is the &ariab e "! primar' interest t" the resear-her0 The resear-her6s #"a is t" understand and des-ribe the dependent &ariab e( "r t" e4p ain its &ariabi it'( "r predi-t it0 In m' stud' dependent &ariab e is P"&ert' redu-ti"n0

(!+!( I&%e'e&%e&t =aria*#e

An independent &ariab e is "ne that in! uen-es the dependent &ariab e in either p"siti&e "r ne#ati&e .a'0 That is( .hen the independent &ariab e is present( the dependent &ariab e is a s" present( and .ith ea-h unit "! in-rease in the independent &ariab e( there is an in-rease "r de-rease in the dependent &ariab e a s"0 In "ther ."rds( the &arian-e in the dependent &ariab e is a--"unted !"r b' the independent &ariab e0 In this -ase independent &ariab e is Mi-r" Credit0

(!+!+ M"%erati&2 =aria*#e

The m"deratin# &ariab e is "ne that has a -"ntin#ent e!!e-t "n the independent and dependent &ariab es re ati"nship0 That is( the presen-e "! a &ariab e ;m"deratin# &ariab e< m"di!ies the "ri#ina re ati"nship bet.een independent and the dependent &ariab es0 I ha&e ta)en en&ir"nment as a M"deratin# Variab e0 En&ir"nment is ta)en in a sense that it -"&ers P" iti-a en&ir"nment( it means that .hat are the #"&ernment strate#ies t" redu-e p"&ert' and t" impr"&e i&in# standard "! its pe"p e0 @hat are the ban)s p" i-ies t" redu-e p"&ert'( .hat is the interest rateJ @hat are the -"nditi"ns "n .hi-h ban) is endin# "an t" pe"p e( are -"nditi"ns a--eptab e b' pe"p e( are -"nditi"ns a!!"rdab e b' pe"p eJ

(!, Sc.ematic %ia2ram $"r t.e t.e"retica# $rame 6"r8

MICRO CREDIT

POVERTY RED%CTION

Independent &ariab e &ariab e

POLITICAL ENVIRONMENT

Dependent

M"deratin# &ariab e

1ere mi-r" -redit is ta)en as an independent &ariab e and p"&ert' redu-ti"n as a dependent &ariab e0 @hen mi-r" -redit in-reases p"&ert' de-reases s"2 p"&ert' redu-ti"n is dependent "n mi-r" -redit0 Pre&i"us resear-hes -"ndu-ted "n this t"pi- 9R" e "! mi-r" -redit in p"&ert' a e&iati"n: sh".s that mi-r" -redit is an e!!e-ti&e t"" in p"&ert' a e&iati"n0 Micro-credit is known as an effective tool for poverty alleviation. In poor countries like Pakistan greater attention as !een paid to poverty alleviation t roug micro-credit" especially in t e last decade. T e successful use of t e micro credit is considered as a victory for t e disadvantaged segments.# $Poverty alleviation t roug micro credit Zahid Shahab Ahmed" Pakistan S"me "! the !a-t"rs that sh". p"&ert' redu-ti"n are Trainin# and edu-ati"n( - ean .ater and h'#ieni- en&ir"nment( Nutriti"n and adequate !""d( A--"mm"dati"n( In-"me and sa&in#s0

(!0 Pr"*#em Stateme&t

Pr"b em statement is a s" "!ten re!erred t"( is a - ear( pre-ise and su--in-t statement "! the questi"n "r issue that is t" be in&esti#ated .ith the #"a "! !indin# an ans.er "r s" uti"n0 1ere in this stud' pr"b em statement isH Impact of micro credit on poverty alleviation

(!1 Hy'"t.e-i- %eve#"'me&t

1'p"thesis -an be de!ined as "#i-a ' -"n5e-tured re ati"nship bet.een t." "r m"re &ariab es e4pressed in the !"rm "! a testab e statement0 On-e the resear-her identi!ies the imp"rtant &ariab es in a situati"n and estab ishes the re ati"nships am"n# them thr"u#h "#i-a reas"nin# in the the"reti-a !rame ."r)( n". is a time t" test .hether the re ati"nships that ha&e been the"ri=ed d" in !a-t h" d true0 $' testin# these re ati"nships s-ienti!i-a ' thr"u#h appr"priate statisti-a ana 'sis resear-her is ab e t" "btain re iab e in!"rmati"n "n .hat )ind "! re ati"nship e4ist am"n# the

&ariab es "peratin# in the pr"b em situati"n0 The resu ts "! these tests "!!er s"me - ues as t" .hat -"u d be -han#ed in the situati"n t" s" &e the pr"b em0 F"rmu atin# su-h testab e statements is -a ed h'p"thesis de&e "pment0

(!3 Hy'"t.e-i- Stateme&tThere are di!!erent !"rmats "! h'p"thesis statements su-h as i!?then( dire-ti"na and n"n dire-ti"na ( nu and a ternate0 I ha&e used Dire-ti"na 1'p"thesis0 It sh".s p"siti&eCne#ati&e re ati"nship bet.een t." &ariab es0 1+H Trainin# and edu-ati"n d"es n"t p a' an' r" e in p"&ert' redu-ti"n 17H Trainin# and edu-ati"n p a's an imp"rtant r" e in p"&ert' redu-ti"n 1+H C ean .ater and h'#ieni- en&ir"nment has n" impa-t "n p"&ert' redu-ti"n 17H C ean .ater and h'#ieni- en&ir"nment has an impa-t "n p"&ert' redu-ti"n 1+H Nutriti"n and adequate !""d is n"t an imp"rtant p a'er "! p"&ert' redu-ti"n 17H Nutriti"n and adequate !""d is an imp"rtant p a'er "! p"&ert' redu-ti"n 1+H A--"mm"dati"n has n" -"n-ern .ith p"&ert' redu-ti"n 17H A--"mm"dati"n has an imp"rtant -"n-ern .ith p"&ert' redu-ti"n 1+H In-"me d"es n"t p a' an imp"rtant r" e in p"&ert' redu-ti"n 17H In-"me p a's an imp"rtant r" e in p"&ert' redu-ti"n 1+H Sa&in#s d"es n"t p a' an imp"rtant r" e in p"&ert' redu-ti"n 17H Sa&in#s p a's an imp"rtant r" e in p"&ert' redu-ti"n

CHAPTER: +

RESEARCH DESIGN

This -hapter pr"&ides perspe-ti&e "n the resear-h desi#n used t" in&esti#ate the resear-h pr"b em .ith spe-i!i- re!eren-e t" the Sur&e' desi#n( Stud' settin#( %nit "! ana 'sis( T'pe "! resear-h( Se e-tin# "-ati"n( Data -" e-ti"n meth"d( and Statisti-a te-hniques ;Per-enta#e( Frequen-'( Mean( Standard de&iati"n( Ran#e<0

+!1 Survey %e-i2&

$asi-a ' I am ana '=in# the r" e "! mi-r" -redit in p"&ert' a e&iati"n0 Mi-r" -redit is )n".n as an e!!e-ti&e t"" !"r p"&ert' a e&iati"n0 In p""r -"untries i)e Pa)istan #reater attenti"n has been paid t" p"&ert' a e&iati"n thr"u#h mi-r" -redit( espe-ia ' in the ast de-ade0 Man' mi-r" -redit instituti"ns are ."r)in# in Pa)istan !"r p"&ert' a e&iati"n but sti ri-her and p""r is be-"min# p""rer and p""rer0 S"2 I -"mpared i&in# standard "! p""r pe"p e i&in# in !"ur urban s um areas "! Ra.a pindi and Is amabad ;Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria < be!"re and a!ter uti i=ati"n "! the -redit in "rder t" ana '=e the r" e "! mi-r" -redit in p"&ert' a e&iati"n0 The samp e si=e !"r this sur&e' is *++ .ith 3+ resp"ndents per area0 The stud' .as based "n questi"nnaires .hi-h .ere distributed a!ter trans atin# it int" %rdu s" that resp"ndents -an easi ' understand it and !i it a--"rdin# '0 The dependent &ariab e is P"&ert' redu-ti"n .here as independent &ariab e is mi-r" -redit0 And m"deratin# &ariab e is En&ir"nment0 En&ir"nment is ta)en in a sense that it -"&ers P" iti-a en&ir"nment( it means that .hat are the #"&ernment strate#ies t" redu-e p"&ert' and t" impr"&e i&in# standard "! its pe"p e0 @hat are the ban)s p" i-ies t" redu-e p"&ert'( .hat is the interest rateJ @hat are the -"nditi"ns "n .hi-h ban) is endin# "an t" pe"p e( are -"nditi"ns a--eptab e b' pe"p e( are -"nditi"ns a!!"rdab e b' pe"p eJ .e -an see that #ap bet.een p""r and ri-h is in-reasin# e&er' da'0 Ri-h is be-"min# ri-her and

+!( Stu%y -etti&2

Stud' settin# -an be -"ntri&ed and n"n -"ntri&ed0

This stud' is n"n -"ntri&ed0 @hen resear-h is -"ndu-ted in natura en&ir"nment .here ."r) pr"-eeds n"rma ' it is n"n -"ntri&ed settin#0 Durin# this stud' m' inter!eren-e .as ess in resp"ndent6s r"utine i!e0

+!+ &it "$ a&a#y-iThe unit "! ana 'sis re!ers t" the e&e "! a##re#ati"n "! the data -" e-ted durin# the subsequent data ana 'sis sta#e0 As m' pr"b em statement is Impact of micro credit on poverty alleviation S"2 I required data !r"m th"se indi&idua s .h" ha&e e4perien-ed "r e4perien-in# mi-r" -redit0 In this .a' it -an be "bser&ed that .hat impa-t mi-r" -redit has "n their i&in# standard0 @hat .as their i&in# standard be!"re uti i=ati"n "! mi-r" -redit and a!ter mi-r" -reditJ S"2 here in this stud' unit "! ana 'sis is Indi&idua 0

+!, Ty'e "$ Re-earc.

Resear-h -an be underta)en !"r t." di!!erent purp"ses0 One is t" s" &e a -urrent pr"b em( demandin# a time ' s" uti"n0 F"r e4amp e( a parti-u ar pr"du-t ma' n"t be se in# .e App ied Resear-h0 The "ther resear-h that I -"ndu-ted in this stud' is $asi- resear-h0 It is t" #enerate a b"d' "! )n". ed#e b' tr'in# t" -"mprehend h". -ertain pr"b ems that "--ur in "r#ani=ati"ns -an be s" &ed0 Later "n the )n". ed#e #ained b' the !indin#s "! basi- resear-h -an be app ied t" s" &e pr"b ems0 and the mana#er mi#ht .ant t" !ind the reas"ns !"r this in "rder t" ta)e -"rre-ti&e a-ti"n0 Su-h resear-h is -a ed

+!0 Se#ecti&2 #"cati"&

This stud' .as -"ndu-ted in t." -ities "! Pa)istan i0e0 Ra.a pindi and Is amabad0 In b"th -ities the stud' tar#eted !"ur urban s um areas i0e0 Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria 0

+!1 Data c"##ecti"& met."%

I used Muesti"nnaire as a data -" e-ti"n t"" 0 Muesti"nnaire a ".s the resear-her t" #ather stru-tured in!"rmati"n !r"m a ar#e number "! indi&idua s0 The ana 'sis "! questi"nnaire is eas' due t" the stru-tured in!"rmati"n in it0 T" #et m"re re e&ant data I trans ated questi"nnaire int" %rdu thr"u#h In pa#e and then I distributed them t" resp"ndents s" that the' -an easi ' understand questi"ns0 $e-ause i! I as)ed them questi"n in %rdu and the' ans.er me I .i n"t be sure that the' per-ei&ed m' questi"n in e4a-t ' that .a' in .hi-h I am as)in#0 S"2 t" "&er-"me this pr"b em I !"und it better t" trans ate questi"nnaire int" %rdu s" that e&er' "ne -an easi ' read it( understand it and ans.er it a--"rdin# '0 P"pu ati"n -"nsists "! the t"ta it' "! the "bser&ati"ns .ith .hi-h resear-her is -"n-erned0 @here as a Samp e is a subset "! a p"pu ati"n0 P"pu ati"n in this stud' -"nsisted "! pe"p e "! Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria .h" ha&e ta)en mi-r" -redit and samp e .as "! *++ .ith 3+ resp"ndents per area0 Resp"nse rate .as 7++G0 I ha&e used Purp"si&e samp in# .hi-h is t'pe "! N"n pr"babi it' samp in# in .hi-h the e ements in the p"pu ati"n d" n"t ha&e an' pr"babi it' atta-hed t" their bein# -h"sen as samp e sub5e-ts0 Purp"si&e samp in# -"n!ines t" spe-i!it'pe "! pe"p e .h" -an pr"&ide the desired in!"rmati"n( either be-ause the' are the "nes .h" ha&e it( "r -"n!irm t" s"me -riteria set b' the resear-her0 As I se e-ted th"se pe"p e .h" are usin# mi-r" -redit "r ha&e used mi-r" -redit0 Purp"si&e samp in# is "! t." t'pes6 5ud#ment samp in# and qu"ta samp in#0 I ha&e used 5ud#ment samp in#0 This samp in# in&" &es the -h"i-e "! sub5e-ts .h" are m"st ad&anta#e"us ' p a-ed "r in the best p"siti"n t" pr"&ide the in!"rmati"n required0 $e-ause th"se pe"p e are e4perien-in# mi-r" -redit "r ha&e e4perien-ed mi-r" -redit s" the' -an better te .hat impa-t mi-r" -redit

has "r had "n their i&in# standard0 $etter -"mparis"n -an be made "! their i&in# standard be!"re and a!ter uti i=ati"n "! mi-r" -redit0 The resp"nses .ere tabu ated and e4pressed in terms "! per-enta#e and !requen-ies0 Thus the -" e-ted data .ere ana '=ed statisti-a ' usin# mean( Standard de&iati"n and Ran#e .ith the he p "! Statisti-a Pa-)a#e !"r S"-ia S-ien-es ;SPSS< and #raphs .ere made "n MS E4-e 0

+!3 Stati-tica# tec.&i>ue+!3!1 Perce&ta2e

A per-enta#e is a spe-ia t'pe "! pr"p"rti"n .here the rati" is mu tip ied b' a -"nstant( 7++( s" that the rati" is e4pressed per 7++0

+!3!( ;re>ue&cy
The rate at .hi-h s"methin# happens "r is repeated is -a ed !requen-'0

+!3!+ Mea&
In statisti-s( the mean is the mathemati-a a&era#e "! a set "! numbers0 The a&era#e is -a -u ated b' addin# up t." "r m"re s-"res and di&idin# the t"ta b' the number "! s-"res0 C"nsider the !" ".in# number setH *( I( E( 8( and 7*0 The a&era#e is -a -u ated in the !" ".in# mannerH * S I S E S 8 S 7* T AA C 3 T E0E0 S" the a&era#e "! the number set is E0E0

+!3!, Sta&%ar% %eviati"&

Standard de&iati"n is a measure "! the dispersi"n "! "ut-"mes ar"und the mean ;"r e4pe-ted &a ue<( used t" measure t"ta ris)0 It is the square r""t "! the &arian-e0

+!3!0 Ra&2e
The Ran#e R is de!ined as the di!!eren-e bet.een the e4treme &a ues( i?e the di!!eren-e bet.een the ar#est and the sma est &a ues in the data0 S'mb" i-a '( the ran#e is #i&en b' the re ati"n0 RT4m U 4" @here 4m stands !"r the ar#est &a ue and 4" den"tes the sma est "ne0 In a !requen-' distributi"n( the ran#e is equa t" the di!!eren-e bet.een the upper b"undar' "! the hi#hest - ass and the ".er b"undar' "! the ".est - ass0

CHAPTER: ,

DATA ANAL<SIS

This -hapter presents the m"st sa ient !indin#s based "n the empiri-a ana 'sis and pr"&ides an "&er&ie. "! the resear-h !indin#s "btained based "n the statisti-s !"r the measurin# instruments .hi-h .ere uti i=ed0 Des-ripti&e statisti-s( Interpretati"ns( "! !a-t"rs Fraphi-a sh".in# representati"ns p"&ert' "! resp"ndentOs Interpretati"n( dem"#raphi-s -hara-teristi-s( patterns "! mi-r" -redit uti i=ati"n( Fraphi-a representati"n redu-ti"n( -"mparis"n "! resu ts .ith "ther resear-hers0 Statisti-a ana 'sis is d"ne usin# s"!t.are Statisti-a Pa-)a#e !"r S"-ia S-ien-es ;SPSS< and #raphs .ere made "n MS ELCEL0

,!1 De-cri'tive -tati-tic-

;re>ue&cy? @A Ge&%er Ma e Fema e A2e *+ 'rs "r be ". *7?A+ 'rs A7?I+ 'rs I7?3+ 'rs Ab"&e 3+ 'rs E%ucati"& Master $a-he "r Intermediate Matri-u ati"n %nder matriI iterate Marita# -tatuSin# e Married N"! "$ c.i#%re& + 7?* 7A+ B+ 78 3+ 38 3I 7, A+ A3 I7 A* A7 A7 7IB 3A EB 3B

Per-enta#e ;G< 10 +0 5!0 (0 (5!0 (3 5 10 13!0 (7!0 11 10!0 10!0 3+!0 (1!0 ++!0 (4!0

A?I 3 "r m"re Occu'ati"& N"neC sur&i&in# "n =a)at(

33 *+ 7*

(3!0 17 1 1(!0 1,!0 +(!0 0 (( 3!0

-harit' and "--asi"na ab"r Dri&er *3 S.eeper *8 Lab"r E3 Pe"n 7+ S-h"" tea-her II Other 73 D" y"u .ave a&y ex'erie&ce 6it. micr" cre%itB Yes N" I$ <e-C ."6 #"&2 y"u *ee& u-i&2 itB Less than E m"nths E m"nths 7 'ear M"re than 7 'ear W.at i- t.e t"ta# am"u&t "$ micr" cre%it y"u .ave ta8e& -" $arB *+++ I+++ E+++ "ther W.at %i% y"u %" 6it. t.e m"&eyB Open sh"p "r pur-hased ta4i( ri-)sha.( se.in# ma-hine Impr"&e h"usin# -"nditi"n 3+ 7 *E 77 77B 733 I3

33!0 ((!0

3 7* I7 8B

+!( 3!3 (1 1(!0

7!1 11!3 3!7 30

EA

,7!1

+(!(

In&est in -hi dren edu-ati"n Other Wi## y"u ta8e m"re cre%it a$ter 'ayi&2 t.e curre&t %ueB Yes N" Are y"u -ati-$ie% 6it. t.e 2"ver&me&t '"#icie- "$ 2ra&ti&2 #"a&B Yes N" Are y"u -ati-$ie% 6it. t.e *a&8 '"#icie-B Yes N" Are y"u -ati-$ie% 6it. t.e i&tere-t rate y"u .ave t" 'ayB Yes N" Have y"u ever .a% a&y 'r"*#em i& 'ayi&2 t.e 6ee8#y 'ayme&tB Yes N" D"e- t.e m"&ey y"u *"rr"6 $r"m micr" $i&a&ce *a&8 c"ver y"ur &ee%- "r %" y"u .ave t" *"rr"6 $r"m -"me"&e e#-eB C"&ers

*A A3

1,!4 ((!0

7+7 3I

10 +,!4

B7 ,I

,0!4 0,

3B 8,

+1 1+

I* 77A

(3 3+

7+E I8

14 +1

B7

,0!4

N"t -"&ers ,I D" y"u t.i&8 t.i- -y-tem i'er$ect "r it -."u#% *e im'r"ve%B Per!e-t II Need impr"&ement 777 D" y"u t.i&8 t.i- -y-tem iacc"r%i&2 t" y"ur %ema&%B Yes N" D" y"u .ave c#ea& %ri&8i&2 6ater a&% .y2ie&ic e&vir"&me&tB Yes N" D" m"-t "$ %i-ea-e- y"u 'e"'#e *ear are *ecau-e "$ u&c#ea& 6ater a&% u&.y2ie&ic e&vir"&me&tB Yes N" I- c#ea& 6ater a&% .y2ie&ic e&vir"&me&t a#6ay- avai#a*#e t" y"uB Yes N" D" y"u .ave 'r"'er -a&itati"& -y-temB Yes N" D" y"u .ave t" $ace 6ater -."rta2eB A3 7*+ 7A* *A 3* 7+A 3B 8,

0,

(4!+ 31!1

+1!3 1+!(

++ 11

40 1,

(( 33

33 88

+0 1+

Yes N" I- %ri&8i&2 6ater avai#a*#e t" y"u at ."me "r y"u .a% t" *ri&2 it $r"m -"me "t.er areaB A&ai ab e at h"me N"t a&ai ab e at h"me D" y"u .ave y"ur "6& ."u-eC "r it i- re&te%B O.n Rented I- y"ur ."u-e e&"u2. $"r $ami#y mem*er-B En"u#h N"t en"u#h W.at ty'e "$ ."u-e it i-B Mud h"use St"ne h"use I- y"ur ."u-e -tr"&2 e&"u2. t" *ear t.u&%er-t"rm "r a&y "t.er 8i&% "$ &atura# %i-a-terB Str"n# en"u#h N"t en"u#h D"e- y"ur ."u-e .ave *a-ic &ece--itie- -uc. a-

7** AA

34 (1

37 7+I

++ 13

B7 ,I

,0 0,

E3 8+ EA 8*

,( 04 ,7 05

8* EA

05 ,7

*e%C c.airC a&% e#ectricityB Yes 7I+ N" 73 D" y"u .ave e&"u2. r""m-C "r y"u a## #ive i&

57 5!1

"&e r""mB En"u#h One I- y"ur i&c"me e&"u2. $"r $ami#y mem*er-B En"u#h N"t en"u#h I- y"ur i&c"me e&"u2. t" *ear a&y u&certai& ex'e&-e- ?-u%%e& 2ue-tC c.i#% 2et- i##C *rea8a2e "$ a&y 'r"'erty ?."u-eA %ue t" t.u&%er-t"rmC eart.

IA 77*

(3 3(

II 777

(4 31

>ua8e etcAB En"u#h I3 N"t en"u#h 77+ Are y"u t.e "&#y ear&er "$ t.e $ami#yB Yes N" W.at i- y"ur t"ta# $ami#y i&c"meB *+++ I+++ E+++ Other I- y"ur i&c"me e&"u2. t" *ear recreati"&a# activitie$"r c.i#%re&B Yes N" D" y"u 6a&t -"me "t.er -"urce- "$ i&c"meB Yes II 77+ 8+ E3

(5 31

04 ,(

3 I* *, ,+

+!( (3 14 01

(4 31

7A*

40

N" D" y"u e&c"ura2e -avi&2-B Yes N" Are y"u a*#e t" -aveC "r it i- %i$$icu#t $"r y"uB Ab e Di!!i-u t D" y"u .ave -avi&2- $"r rai&y %ay- a&% a&y &atura# %i-a-terB Yes N" H"6 muc. 'art "$ i&c"me %" y"u -aveB 3G 7+G 73G N"ne W.at i- t.e "*/ective "$

*A

1,!4

7IE 8

5, 0!4

II 777

(4 31

3A 7+*

+, 10

A* 7, 77 8I

(7 11!1 3!7 17

y"ur -avi&2-B T" meet an' un-ertain -risis E* in !uture F"r !uture use( i! '"u ha&e n"thin# e!t .ith '"u F"r -hi dren .e !are Other D" y"u 6a&t t" i&ve-t y"ur -avi&2- i& a&y $"rm "$ *u-i&e-- ?ric8-.a6C taxiC -."' etcAB Yes N" 88 3E I* A* *E

,7 (3 (7 11

1+ +1

Have y"u i&v"#ve% i& a&y 8i&% "$ trai&i&2 ?Aut" 6"r8-."' etcA "r e%ucati"& 'r"2ramB Yes N" D" y"u $ee# t.at *y trai&i&2 "r e%ucati"& y"u ca& im'r"ve y"ur #ivi&2 -ta&%ar%B Yes N" D" y"u t.i&8 trai&i&2 "r e%ucati"& i- ex'e&-e "r a--etB E4pense Asset Have a&y "$ y"ur c.i#%re& 2etti&2 a&y 8i&% "$ trai&i&2 "r e%ucati"&B Yes N" D" y"u t.i&8 trai&i&2 "r e%ucati"& i- a 6ay t" -"#ve y"ur 'r"*#em-B Yes N" I$ "''"rtu&ity "$ $ree e%ucati"& a&% trai&i&2 i'r"vi%e% t" y"uC 6i## y"u avai# itB Yes N" 7*I A7 47 (7 77B A, 30 (,!0 ,, EB 01 ,+ ,7 BI 0( ,3 ,7 BI 0( ,3 EA 8* ,7 05

D" y"u .ave e&"u2. $""% every %ayB Yes N" D" y"u $ee# %i$$icu#t t" ma&a2e $""% ex'e&-e-B Yes N" W.at i- y"ur %ai#y avera2e ex'e&-e "& $""%B 7++ 73+ *++ Other I- t.ere a&y %ay y"u #ive 6it."ut $""%B Yes N" Have y"u ever $e#t u&certai& a*"ut 6.et.er I 6i## 2et &ext time mea# "r &"tB Yes N" W.at %" y"u m"-t#y eatB Fresh -hapatti Meat Linte s Sta e -hapatti Ri-e Other H"6 %" y"u -ee t.e %i$$ere&ce i& y"ur #i$e a$ter y"u -tarte% u-i&2 ,B E, 7+, 83 E, IB 88 7A 01 ,+!4 37 11 ,+!4 +7!+ 1+!4 4!+ ,7 BI 0(!( ,3!3

7+B I,

15 +1

A8 I* A8 A3

(0 (3 (0 ((!0

,* BA

0+ ,3

micr" cre%itB Impr"&e a--"mm"dati"n C ean .ater and h'#ienien&ir"nment In-rease in-"me In-rease sa&in#s Adequate !""d Trainin# and edu-ati"n Ot.er ,!( I&ter'retati"&

8+ A *8 7I , *B 11

04 1!5 14!3 5!7 0!1 13!, 3!7

The resu ts !"r the &ari"us !a-ets "! the questi"nnaire t" determine the R" e "! mi-r" -redit in p"&ert' a e&iati"n are "ut ined in ab"&e tab e0 Resu ts indi-ate that ma5"rit' V;NT7A+< ;E3G<W "! the b"rr".ers are ma e0 M"st "! b"rr".ers V;NT38< ;*803G<W be "n#s !r"m A7?I+a#e #r"up0 Ma5"rit' V;NTI7< ;*+03G<W are intermediate0 Ma5"r part "! the p"pu ati"n V;NT7IB< ;BA03G<W is sin# e0 Th"se .h" are married( their ar#e p"pu ati"n V;NTEB< ;AA03G<W has =er" -hi dren0 m"st ' pe"p e are ab"rers V;NTE3< ;A*03G<W0t"ta samp e si=e .as *++ "ut "! .hi-h 733 ;BB03G< has an e4perien-e "! ta)in# mi-r" -redit0 and V;NT8B< ;E*03G<W has an e4perien-e sin-e m"re than 7 'ear0 V;NT77B< ;B3G<W has ta)en -redit m"re than E+++0 V;NTEA< ;I+0E<W has "pened sh"p( pur-hased ta4i( ri-)sha. "r se.in# ma-hine0 V;NT7+7< ;E3G<W is p annin# t" ta)e m"re -redit a!ter pa'in# the -urrent due0 $ut V;NT,I< ;3IG<W is n"t satis!ied .ith #"&ernment p" i-ies "! #rantin# the "an and V;NT8,< ;EAG<W is n"t satis!ied .ith the ban) p" i-ies0 Simi ar ' V;NT77A< ;BAG<W is n"t satis!ied .ith the interest rate the' ha&e t" pa'0 V;NT 7+E< ;E,G<W !a-es pr"b em .ith the .ee) 'Cm"nth ' pa'ments0 And V;NT,I< ;3IG<W sa's that the m"ne' the' b"rr". !r"m mi-r" !inan-e ban) d"es n"t -"&ers their a needs0 And V;NT777< ;B70EG<W sa's this s'stem is n"t per!e-t !"r p"&ert' redu-ti"n it needs impr"&ements0 Simi ar ' V;NT8,< ;EA0*G<W sa's this s'stem is n"t a--"rdin# t" their demand0 It has a s" been !"und that V;NT7,*< ;77B07G<W mi-r" -redit bene!i-iaries had impr"&ement in their i&in# standard a!ter uti i=in# the mi-r" -redit0 Rests "! 7, - aims that be!"re mi-r" -redit the' used t" s eep hun#r' but the' .ere re a4ed as the' did n"t ha&e t" return an' -redit0 $ut a!ter ta)in# mi-r" -redit the'

ha&e tensi"n "! repa'ment -redit( s"metimes the' ha&e ess earnin# and the' ha&e tensi"n that their earnin# is ess then !r"m .here the' -an return -redit0 And a s" th"se pe"p e .h" ha&e pur-hased an' ta4i "r ri-)sha. and the' are ."rried ab"ut it that .hat the' .i d" i! it is st" en0 S"2 mi-r" -redit ma)es their i!e !u "! tensi"n a--"rdin# t" them0 As the !a-t"rs that sh". p"&ert' redu-ti"n in this stud' are trainin# and edu-ati"n( - ean .ater and h'#ieni- en&ir"nment( nutriti"n and adequate !""d( a--"mm"dati"n( in-"me and sa&in#s0 And .e -an see !r"m the ab"&e tab e that V;NT8+<;3,G<W see impr"&ement in a--"mm"dati"n a!ter ta)in# mi-r" -redit0V;NT*8<;7,0BG<W see betterment in in-"me0 V;NT*B<;7B0IG<W #ets trainin# and edu-ati"n a!ter ta)in# mi-r" -redit0V;NT7I<;8G<W see in-rease in sa&in#s a!ter uti i=in# mi-r" -redit0 V;NT 77< ;BG<W uses this -redit t" ma)e pa'ments ta)en !r"m "ther pe"p e( marria#es( pur-hasin# and et-0 V;NT ,< ;307G<W sa's the' #et adequate !""d a!ter usin# mi-r" -redit0 and "n ' V;NTA< ;708G<W sa's the' #et - ean .ater and h'#ieni- en&ir"nment a!ter usin# mi-r" -redit0

,!+ Gra'.ica# re're-e&tati"& "$ re-'"&%e&tD- %em"2ra'.ic c.aracteri-tic-

Gender
200 100 0 Series1

Male 130

Female 70

As highlighted by above figure, the majority of the respondents in the sample are males, with 65 (N=13 ! of the respondents being male and 35" (N=# ! of the respondents being female$

Age
60 50 40 30 20 10 0 20 yrs or below 19 21-30 50 31-40 59 41-50 54 Above 50 yrs 18

Series1

As illustrated by above figure, 5% respondents (&%$5"! fall into the age group 31'( &1'3 years$ 5( respondents (&#"! fall into the age years or group (1'5 years and 5 respondents (&5"! fall into the age group years$ 1% respondents (%$5"! fell into the age & below$ )he fewest respondents (1*+ %"! fall into the age group above 5 years$

Education
60 40 20 0 Series1 Mast Bach !ter Matri "!#e lliter 30 35 41 32 31 31

Above ,igure 3$6 highlights the edu-ational level of the sample$ .t -an be noted that 3 (15"! are masters$ 35 (1#$5"! holds ba-helor degree$ (1 (& $5"! are intermediate, 3& (16"! are mati-$ 31 (15$5"! are under matri- and 31 (15$5"! are illiterate$

Marital status
200 100 0 Series1

Si!$le 147

marrie# 53

Ab"&e !i#ure depi-ts the marita status "! resp"ndents0 A--"rdin# t" !i#ure 7IB ;BA03G< resp"ndents are sin# e and 3A ;*E03G< resp"ndents are married0

No. of children
100 50 0 Series1

&ero %7

o!e-two three57 55

'ive or 20

Fr"m the ab"&e !i#ure it is - ear that EB resp"ndents ;AA03G< ha&e n" -hi dren( 3B resp"ndents ;*,03G< ha&e 7?* -hi dren( 33 resp"ndents ;*B03G< ha&e A?I -hi dren and *+ ;7+G< ha&e 3 "r m"re -hi dren0

Occupation
100

50

0 Series1

(o! #riv Swe lab )eo Sch *th 12 25 29 %5 10 44 15

It is - ear !r"m ab"&e !i#ure that 7* ;EG< ha&e n" "--upati"n( the' sur&i&e "n =a)at( -harit' and "--asi"na ab"r0 *3 ;7*03G< .ere dri&er( *8 ;7I03G< .ere s.eeper( E3 ;A*03G< .ere ab"r( 7+ ;3G< .ere pe"n( II ;**G< .ere s-h"" tea-her and 73 ;B03G< be "n#s !r"m "ther pr"!essi"ns su-h as - er)( a--"untant( -"mputer "perat"r et-0

,!, Patter& "$ micr" cre%it uti#i9ati"& ?&E(77A

Trai&i&2 a&% e%ucati"& 'r"2ram

1a&e '"u in&" &ed in an' )ind "! trainin# "r

Mea& F SD Ra&2e
BB03S *+03 *8

edu-ati"nJ D" '"u !ee that b' trainin# and edu-ati"n i&in# standard -an be impr"&edJ @hat d" '"u thin) trainin# "r edu-ati"n is e4pense "r assetJ 1a&e an' "! '"ur -hi dren is #ettin# an' )ind "! trainin# "r edu-ati"nJ D" '"u thin) trainin# "r edu-ati"n is a .a' t" s" &e '"ur pr"b emsJ I! "pp"rtunit' "! !ree edu-ati"n "r trainin# is pr"&ided t" '"u( .i '"u a&ai itJ

BB03SI08I BB03SI08I BB03S7I0,I BB03S330,E BB03SE30B

B B *7 B8 8A

C#ea& 6ater a&% .y2ie&ic e&vir"&me&t

D" '"u ha&e - ean drin)in# .ater and h'#ienien&ir"nmentJ D" m"st "! diseases '"u pe"p e bear are be-ause "! un- ean .ater and unh'#ieni- en&ir"nmentJ Is - ean .ater and h'#ieni- en&ir"nment a .a's a&ai ab e t" '"uJ D" '"u ha&e pr"per sanitati"n s'stemJ D" '"u ha&e t" !a-e .ater sh"rta#eJ Is drin)in# .ater a&ai ab e t" '"u at h"me "r '"u had t" brin# it !r"m s"me "ther areaJ

BB03SAE BB03SBB BB03SE+ BBSA7 BB03SE*08 BB03SAB0I

37 7+8 ,3 II ,8 3A

Nutriti"&Ga%e>uate ;""%
D" '"u ha&e en"u#h !""d e&er' da'J D" '"u !ee di!!i-u t t" mana#e !""d e4pensesJ @hat is '"ur dai ' a&era#e e4pense "n !""dJ Is there an' da' '"u i&e .ith"ut !""dJ 1a&e '"u e&er !e t un-ertain ab"ut .hether I .i #et ne4t time mea "r n"tJ @hat d" '"u m"st ' eatJ BB03SI08 BB03SI7 A,0BS*0,B BB03SE0A BB03S7A0I B70ESAE03 BB03S807 BB03S7B0E BB03S*+03 BB03S*+03 BB03S,, B 38 B 8 78 83 7A *3 *8 *8 7*3

Acc"mm"%ati"&
D" '"u ha&e '"ur ".n h"me( "r it is rentedJ Is '"ur h"use en"u#h !"r !ami ' membersJ @hat t'pe "! h"use it isJ Is '"ur h"use str"n# en"u#h t" bear thunderst"rm "r an' "ther )ind "! natura disasterJ D"es '"ur h"use ha&e basi- ne-essities su-h as bed(

-hair and e e-tri-it'J D" '"u ha&e en"u#h r""ms( "r '"u a r""mJ

i&e in "ne

BB03SI,0B

E8

I&c"me
Is '"ur in-"me en"u#h !"r !ami ' membersJ Is '"ur in-"me en"u#h t" bear an' un-ertain e4pensesJ Are '"u the "n ' earner "! the !ami 'J @hat is '"ur t"ta !ami ' in-"meJ Is '"ur in-"me en"u#h t" bear re-reati"na a-ti&ities !"r -hi drenJ D" '"u .ant s"me "ther s"ur-es "! in-"meJ BB03SIB0A BB03SI308 BB03S7B0E A,0BSA70I BBSIE0E BB03SBB BB03S8E0, BB03S IB0A BB03S AI0E A,0BS AB0, I+03S 730B BB03S A+0I *ES*80B EB E3 *3 B3 EE 7+8 7AB EB I8 ,A AE IA ,B

Savi&2D" '"u en-"ura#e sa&in#sJ Are '"u ab e t" sa&e( "r it is di!!i-u t !"r '"uJ D" '"u ha&e sa&in#s !"r rain' da'sJ 1". mu-h part "! in-"me d" '"u sa&eJ @hat is the "b5e-ti&e "! '"ur sa&in#sJ D" '"u .ant t" in&est '"ur sa&in#s in an' !"rm "! businessJ 1". d" '"u see the di!!eren-e in '"ur i!e a!ter mi-r" -redit uti i=ati"nJ

,!0 Gra'.ica# re're-e&tati"& "$ $act"r- -."6i&2 '"verty re%ucti"& Trai&i&2 a&% e%ucati"& 'r"2ram

Have you involved in any kind of the training?

100 80 60 40 20 0 Series1 +es %3 (o 92

Fr"m ab"&e !i#ure .e -an see that EA resp"ndents I+0EG .ere in&" &ed in trainin# and 8* resp"ndents 380AG .ere n"t in&" &ed in an' )ind "! trainin# "r edu-ati"n pr"#ram0 That trainin# in .hi-h EA resp"ndents .ere in&" &ed .as re ated t" Aut" ."r)sh"p( m"bi e repairin# et-0
Do you feel that by training or education you can i prove your living standard?

85 80 75 70 Series1 +es 81 (o 74

Fr"m the ab"&e !i#ure it is - ear that ,7 resp"ndents ;3*0*G< thin) that thr"u#h trainin# "r edu-ati"n the' -an impr"&e their i&in# standard0 And BI resp"ndents ;IB0BG< sa' that trainin# "r edu-ati"n -ann"t impr"&e their i&in# standard0

Do you think training or education is an e!pense or an asset?

85 80 75 70 Series1

,-)e!se 81

Asset 74

Fr"m ab"&e !i#ure .e -an see that ,7 resp"ndents ;3*0*G< thin) that trainin# "r edu-ati"n is an e4pense and BI resp"ndents ;IB0BG< sa's that trainin# "r edu-ati"n is an asset0

Have any of your children getting any kind of training or education?

100

50

0 Series1

+es 88

(o %7

,, resp"ndents ;3E0BG< are #i&in# trainin# and edu-ati"n t" their -hi dren and EB resp"ndents ;IA0*G< are n"t #i&in# trainin# and edu-ati"n t" their -hi dren0

Do you think training or education is a "ay to solve your proble s?

150 100 50 0 Series1 +es 117 (o 38

Ab"&e !i#ure depi-ts that 77B resp"ndents ;B3G< thin)s that trainin# "r edu-ati"n is a .a' t" s" &e '"ur pr"b ems0 and A, resp"ndents ;*IG< d"n6t thin) that trainin# "r edu-ati"n is a .a' t" s" &e pr"b ems0
#f opportunity of free education and training is provided to you$ "ill you avail it?

150 100 50 0 Series1 +es 124 (o 31

@e -an see !r"m ab"&e !i#ure that 7*I resp"ndents ;,+G< sa' that i! "pp"rtunit' "! !ree edu-ati"n and trainin# is #i&en t" them the' .i a&ai it0

Nutriti"& a&% a%e>uate $""%

Do you have enough food every day?

85 80 75 70 Series1

+es 81

(o 74

It is - ear !r"m the ab"&e !i#ure that ,7 resp"ndents ;3*0*G< ha&e en"u#h !""d e&er' da' and BI resp"ndents ;IB0BG< d"n6t ha&e en"u#h !""d e&er' da'0

%hat is your average daily e!pense on food?

42 40 38 36 34 32 30 Series1 100 39 150 42 200 39 *ther 35

@e -an see that A8 resp"ndents ;*3G< ha&e 7++ dai ' a&era#e e4penses "n !""d( I* resp"ndents ;*BG< ha&e 73+ dai ' a&era#e e4penses "n !""d( A8 resp"ndents ;*3G< ha&e *++ dai ' a&era#e e4penses "n !""d and A3 resp"ndents ;**03G< ha&e "ther e4penses su-h as *3+ et-0

#s there any day you live "ithout food?

85 80 75 70 65 Series1 +es 82 (o 73

,* resp"ndents ;3AG< i&e .ith"ut !""d s"me times( and BA resp"ndents ;IBG< ha&e n"t !a-ed su-h situati"n "! i&in# .ith"ut !""d0

Do you feel difficult to

anage food e!penses?

150 100 50 0 Series1

+es 107

(o 48

Ab"&e !i#ure depi-ts that 7+B resp"ndents ;E8G< !ee di!!i-u t t" mana#e !""d e4penses and I, resp"ndents ;A7G< d"n6t !ee it di!!i-u t0

Have you ever felt uncertain about "hether i "ill get ne!t ti e eal or not?

100

50

0 Series1

+es 87

(o %8

,B resp"ndents ;3EG< are un-ertain ab"ut .hether the' .i #et ne4t time mea "r n"t and E, resp"ndents ;IA0,G< are n"t un-ertain ab"ut .hether the' .i #et ne4t time mea "r n"t0

%hat do you
150 100 50 0

ostly eat?

Fresh cha)atti 108

Meat 95

.i!tels %8

Stale cha)atti 47

/ice 99

*ther 13

Series1

Lar#e number "! resp"ndents 7+, ;B+G< eat !resh -hapatti( 88 resp"ndents ;EIG< eat ri-e( 83 resp"ndents ;E7G< eat meat( E, resp"ndents ;IIG< eat inte s( IB resp"ndents ;A+G< eat sta e -hapatti and 7A resp"ndents ;,G< eat "ther thin#s su-h as &e#etab es0

C#ea& 6ater a&% .y2ie&ic e&vir"&me&t

Do you have clean drinking "ater and hygienic environ ent?

150 100 50 0 Series1

+es 52

(o 103

On ' 3* resp"ndents ;AA03G< ha&e - ean drin)in# .ater and h'#ieni- en&ir"nment and 7+A resp"ndents ;EE0IG< d"n6t ha&e - ean drin)in# .ater and h'#ienien&ir"nment0

Do

ost of the diseases you people bear are beacuse of unclean "ater and unhygienic environ ent?

150 100 50 0 Series1 +es 132 (o 23

A hu#e part "! the samp e 7A* resp"ndents ;,3G< thin)s that m"st "! the diseases the' pe"p e bear are 5ust be-ause "! un- ean .ater and unh'#ieni- en&ir"nment and "n ' *A resp"ndents ;73G< thin)s that un- ean .ater and unh'#ieni- en&ir"nment has n" -"n-ern .ith their diseases0

#s clean "ater and hygienic environ ent al"ays available to you?

150 100 50 0 Series1 +es 35 (o 120

A3 resp"ndents ;**03G< sa' the' ha&e - ear .ater and h'#ieni- en&ir"nment a .a's a&ai ab e t" them but a ma5"r part "! samp e 7*+ resp"ndents ;BB0IG< d"n6t ha&e - ean .ater and h'#ieni- en&ir"nment a .a's a&ai ab e t" them0

Do you have proper sanitation syste ?

100 80 60 40 20 0 Series1 +es 55 (o 99

Ab"&e !i#ure depi-ts that 33 resp"ndents ;A3G< ha&e pr"per sanitati"n s'stem but 88 resp"ndents ;EI0,G< d"n6t ha&e pr"per sanitati"n s'stem0

Do you have to face "ater shortage?

150 100 50 0 Series1

+es 122

(o 33

A ar#e part "! samp e 7** resp"ndents ;B,0BG< !a-e .ater sh"rta#e and "n ' AA resp"ndents ;*70*G< d"n6t !a-e it0

#s drinking "ater available to you at ho e or you had to bring it fro so e other area?

150 100 50 0 Series1 Available at home 51 (ot available at home 104

On ' 37 resp"ndents ;AAG< ha&e drin)in# .ater a&ai ab e at h"me and 7+I resp"ndents ;EBG< resp"ndents ha&e t" brin# it !r"m "ther p a-es0

Acc"mm"%ati"&

Do you have your o"n house$ or it is rented?

85 80 75 70 65 60 Series1 *w! 71 /e!te# 84

B7 resp"ndents ;IEG< ha&e ".n h"use and ,I resp"ndents ;3IG< are i&in# in rent h"uses0

#s your house enough for fa ily

e bers?

100 80 60 40 20 0 Series1 ,!o0$h %5 (ot e!o0$h 90

F"r E3 resp"ndents ;I*G< their h"use is en"u#h !"r their !ami ' members and !"r 8+ resp"ndents ;3,G< their h"use is n"t en"u#h !"r their !ami ' members0

%hat type of house it is?

100 80 60 40 20 0 Series1 M0# ho0se %3 Sto!e ho0se 92

EA resp"ndents ;I+0EG< i&e in mud h"use and 8* resp"ndents ;380AG< i&e in st"ne h"use0

#s your house strong enough to bear thunderstor other natural disaster?

or any

100

50

0 Series1

Stro!$ e!o0$h 92

(ot e!o0$h %3

8* resp"ndents ;380AG< ha&e str"n# en"u#h h"uses t" bear natura disasters and EA resp"ndents ;I+0EG< d"n6t ha&e su-h str"n# h"uses0

Does your house have basic necessitities?

150 100 50 0 Series1

+es 140

(o 15

7I+ resp"ndents ;8+G< ha&e basi- ne-essities su-h as e e-tri-it'( bed( -hair and "n ' !e. resp"ndents 73 ;7+G< d"n6t ha&e these !a-i ities0

Do you have enough roo s or you all live in one roo ?

150 100 50 0 Series1

,!o0$h 43

*!e 112

On ' IA resp"ndents ;*B0BG< ha&e en"u#h r""ms !"r their !ami ' and 77* resp"ndents ;B*0*G< i&e in "ne r""m0

I&c"me

#s your inco e enough for fa ily

e bers?

150 100 50 0 Series1

,!o0$h 44

(ot e!o0$h 111

On ' II resp"ndents ;*,G< ha&e en"u#h in-"me !"r their !ami ' and ar#e number "! resp"ndents 777 ;B70EG< d"n6t ha&e en"u#h in-"me !"r their !ami '0

#s your inco e enough to bear any uncertain e!penses?

150 100 50 0 Series1

,!o0$h 45

(ot e!o0$h 110

On ' I3 resp"ndents ;*8G< ha&e en"u#h in-"me t" bear an' un-ertain e4penses su-h as sudden #uest( -hi d #ets i ( brea)a#e "! an' pr"pert' su-h as h"use due t" thunderst"rm( earthqua)e et-0 and 77+ resp"ndents ;B+08G< d"n6t ha&e en"u#h in-"me t" bear su-h t'pe "! un-ertain e4penses0

Are you the only earner of the fa ily?

100 80 60 40 20 0 Series1 +es 90 (o %5

8+ resp"ndents ;3,G< are the "n ' earner "! their !ami ' and E3 resp"ndents ;I708G< are n"t the "n ' earner( their -hi dren are a s" ."r)in# ;b"'s are ."r)in# in aut" ."r)sh"ps( #ir s are ."r)in# in h"uses<( ."men are ."r)in# in h"uses( in s-h"" s0

%hat is your total fa ily inco e?

80 60 40 20 0 Series1 2000 5 4000 42 %000 28 *ther 80

3 resp"ndents ;A0*G< ha&e "n ' *+++ in-"me( I* resp"ndents ;*BG< ha&e I+++ in-"me( *, resp"ndents ;7,G< ha&e E+++ in-"me( and ,+ resp"ndents ;370EG< ha&e in-"me m"re than E+++0

#s your inco e enough to bear recreational activities for children?

150 100 50 0 Series1 +es 44 (o 110

On ' II resp"ndents ;*,0AG< ha&e en"u#h in-"me t" bear re-reati"na a-ti&ities !"r -hi dren and 77+ resp"ndents ;B+08G< d"n6t ha&e en"u#h in-"me t" bear re-reati"na a-ti&ities !"r -hi dren0

Do you "ant so e other source of inco e?

150 100 50 0 Series1

+es 132

(o 23

A ar#e number "! pe"p e 7A* ;,3G< .ant "ther s"ur-es "! in-"me and "n ' *A resp"ndents ;7I0,G< d"n6t .ant "ther s"ur-es "! in-"me0

Savi&2-

Do you encourge savings?

150 100 50 0 Series1

+es 14%

(o 9

A ar#e number "! pe"p e 7IE resp"ndents ;8IG< en-"ura#e sa&in#s and "n ' 8 resp"ndents ;30,G< d"n6t en-"ura#e it0

Are you able to save or it is difficult for you?

150 100 50 0 Series1

Able 44

1i''ic0lt 111

On ' II resp"ndents ;*,0AG< !ee s that the' are ab e t" sa&e and 777 resp"ndents ;B70EG< !ee s sa&in# as a di!!i-u t tas) !"r them0

Do you have savings for rainy days and any natural disaster?

150 100 50 0 Series1

+es 53

(o 102

On ' 3A resp"ndents ;AIG< ha&e sa&in#s !"r rain' da's and an' natura disaster and 7+* resp"ndents ;E30,G< d"n6t ha&e an' sa&in#s !"r rain' da's0

Ho"
100 80 60 40 20 0 Series1 52 32

uch part of inco e do you save?

102 18

152 11

(o!e 94

A ar#e number "! resp"ndents 8I ;E+0EG< ha&e n" sa&in#s ( A* resp"ndents ;*+0EG< ha&e "n ' 3G sa&in#s( 7, resp"ndents ; 770EG< ha&e "n ' 7+G sa&in#s and 77 resp"ndents ;BG< ha&e 73G sa&in#s0

%hat is the ob&ective of your savings?

80 60 40 20 0 3o meet %2 For '0t0re 42 For chil#re! 32

*ther 2%

Series1

E* resp"ndents ;I+G< - aim that the' d" sa&in#s t" meet an' un-ertain -risis in !uture0 I* resp"ndents ;*BG< d" sa&in#s !"r !uture use2 i! the' are e!t .ith n"thin#( A* resp"ndents ; *+0EG< d" sa&in#s !"r -hi dren .e !are( *E resp"ndents d" sa&in#s !"r "ther purp"ses su-h as 1a55( marria#es( et-0

Do you "ant to invest your savings in any for

of business?

100 80 60 40 20 0 Series1 +es 99 (o 5%

88 resp"ndents ;EA0,G< .ant t" in&est their sa&in#s in an' !"rm "! business su-h as ri-)sha.( ta4i2 sh"p et-0 and 3E resp"ndents ;AEG< d"n6t .ant t" in&est their sa&in#s in an' )ind "! business0

Ho" do you see the difference in your life after utili'ing credit?

icro

S1 Increase income Adequate food Increase savings Improve accommodatio n Training and education Clean water and hygienic environment Other

,!1 I&ter'retati"&
@e -an see !r"m ab"&e !i#ure that 8+ resp"ndents ;3,G< see impr"&ement in their a--"mm"dati"n( *8 resp"ndents ;7,0BG< see in-rease in their in-"me( *B resp"ndents ;7B0IG< see impr"&ement in trainin# and edu-ati"n( 7I resp"ndents ;8G< see in-rease in sa&in#s( 77 resp"ndents ;BG< see impr"&ement in their i!e in a .a' that the' uti i=e mi-r" -redit t" pa' their debt( t" start business( marria#e( treatment "! disease( "perati"ns0 , resp"ndents ;307G< sa' that the' #et adequate !""d a!ter mi-r" -redit uti i=ati"n0 and "n ' A resp"ndents ;708G< see that the' #et - ean .ater and h'#ienien&ir"nment a!ter mi-r" -redit uti i=ati"n0 As .e -an see !r"m ab"&e data ana 'sis that a!ter mi-r" -redit uti i=ati"n EA resp"ndents .ere en#a#ed in trainin# pr"#ram .hi-h is I+G "! the t"ta samp e .hi-h is ess than th"se 8* resp"ndents .hi-h is 380AG "! t"ta samp e ta)in# mi-r" -redit .hi-h are n"t en#a#ed in trainin# and edu-ati"n pr"#ram0 $ut it is a #""d si#n that ,7 resp"ndents .hi-h is 3*0*G "! t"ta samp e usin# mi-r" -redit thin)s that thr"u#h trainin# "r edu-ati"n the' -an impr"&e their i&in# standard but sti the' -"nsider it as an e4pense !"r them n"t an asset0 .hi-h is m"re than BI resp"ndents .hi-h is IB0BG "! th"se pe"p e .h" d" n"t thin) s" that trainin# "r edu-ati"n is a .a' t" impr"&e i&in# standard and BI ;IB0BG< thin) it as an asset0 a s" it is a p"siti&e si#n that ,, resp"ndents .hi-h is 3EG "! t"ta samp e ta)in# mi-r" -redit is #i&in# their -hi dren trainin# "r edu-ati"n .hi-h is m"re then EB pe"p e .hi-h is IAG "! t"ta samp e .h" are n"t #i&in# their -hi dren trainin# "r edu-ati"n07*I pe"p e;,+G<

.h" are read' t" #et trainin# "r edu-ati"n i! the' #et an "pp"rtunit' t" #et !ree trainin# "r edu-ati"n0 This rati" is m"re than "n ' A7 pe"p e ;*+G< .h" are n"t .i in# t" #et it077B pe"p e ;B3G< -"nsider trainin# "r edu-ati"n a .a' t" s" &e pr"b ems "n "ther hand "n ' A, pe"p e ;*I03G< d"n6t thin) it a .a' t" s" &e pr"b ems0 S"2 !r"m ab"&e des-ripti"n it -an be -"n- uded that 17H Trainin# and edu-ati"n p a's an imp"rtant r" e in p"&ert' redu-ti"n0 This h'p"thesis is pr"&ed0 N".2 7+A resp"ndents ;EEG< d"n6t ha&e - ean .ater and h'#ieni- en&ir"nment0 On ' 3* resp"ndents ha&e it .hi-h is AA03G "! t"ta samp e ta)in# mi-r" -redit07A* resp"ndents ;,3G< thin)s that m"st "! the diseases the' bear are 5ust be-ause "! un- ean .ater and unh'#ieni- en&ir"nment0 7*+ resp"ndents ;BBG< d"n6t ha&e - ean .ater and h'#ieni- en&ir"nment a&ai ab e t" them0 88 resp"ndents ;EA0,G< d"n6t ha&e pr"per sanitati"n s'stem07** resp"ndents !a-e .ater sh"rta#e0 7+I resp"ndents ;EBG< d"n6t ha&e drin)in# .ater a&ai ab e at h"me( the' ha&e t" brin# it !r"m s"me "ther p a-e0 S"2 !r"m ab"&e dis-ussi"n it is - ear that 17 H C ean .ater and h'#ieni- en&ir"nment has an impa-t "n p"&ert' redu-ti"n0 This h'p"thesis is pr"&ed0 I! .e see t".ards nutriti"n and adequate !""d @e see that ,7 pe"p e "ut "! 733 ;3*0*G< ha&e en"u#h !""d e&er' da'0 but 7+B resp"ndents ;E8G< !ee s di!!i-u t t" mana#e !""d e4penses0,* pe"p e ;3*08G< e4perien-es su-h da's .here the' i&e .ith"ut !""d0,B pe"p e ;3EG< !ee un-ertain ab"ut .hether the' .i #et ne4t time mea "r n"t0 Its a #""d si#n that 7+, pe"p e ;E80EG< used t" eat !resh -hapatti and 88 pe"p e ;EA0,G< eat ri-e( 83 pe"p e ;E7G< used t" eat meat0E, pe"p e ;IA0,G< used t" eat inte s( IB pe"p e ;A+G< eat sta e -hapatti and 7A pe"p e ;,0AG< eat &e#etab es0 It is a #""d si#n that ma5"rit' "! the pe"p e ha&e a #""d diet but the pr"b em is that this is n"t "n re#u ar basis as e4p ained ab"&e 3*08G pe"p e i&e .ith"ut !""d "!ten0 Fr"m the ab"&e des-ripti"n it -an be -"n- uded that 17H Nutriti"n and adequate !""d is an imp"rtant p a'er "! p"&ert' redu-ti"n0 S"2 17 is a--epted0 N".2 .e see that ,I pe"p e ; 3IG< i&e in rented h"uses( 8+ pe"p e ;3,G< - aims that their h"use is n"t en"u#h !"r their !ami ' members( it is a #""d si#n that 8* resp"ndents ;380AG< i&e in st"ne h"use and their h"use is str"n# en"u#h t" bear

thunderst"rms "r an' "ther )ind "! natura disasters and EA pe"p e ;I+0EG< i&e in mud h"use and their h"use is n"t str"n# en"u#h t" bear thunderst"rms "r an' "ther )ind "! natura disaster07I+ pe"p e ;8+G< ha&e basi- ne-essities in their h"use su-h as e e-tri-it'( bed( -hair0 $ut un!"rtunate ' 77* pe"p e ;B*G< i&e in "ne r""m h"use0 Fr"m ab"&e dis-ussi"n it -an be -"n- uded that 17H A--"mm"dati"n has an imp"rtant -"n-ern .ith p"&ert' redu-ti"n0 S"2 17 is a--epted0 I! .e "") at in-"me .e see that 777 pe"p e ; B70EG< - aims that their in-"me is n"t en"u#h !"r !ami ' members and 77+ pe"p e ;B+08G< - aim that their in-"me is n"t en"u#h t" bear an' un-ertain e4penses su-h as sudden #uest( -hi d #ets i ( brea)a#e "! an' pr"pert' su-h as h"use due t" thunderst"rm( earth qua)e et-( and a s" the' -ann"t a!!"rd re-reati"na a-ti&ities !"r their -hi dren08+ pe"p e ;3,G< are the "n ' earner "! their !ami '07A* pe"p e ; ,3G< .ant s"me "ther s"ur-e "! in-"me0 S"2 .e -an -"n- ude !r"m ab"&e dis-ussi"n that 17H In-"me p a's an imp"rtant r" e in p"&ert' redu-ti"n0 This h'p"thesis is pr"&ed0 Last !a-t"r "! p"&ert' redu-ti"n in m' stud' is Sa&in#s0 7IE pe"p e ;8IG< en-"ura#e sa&in#s but 777 pe"p e ;B70EG< !ee s di!!i-u t t" d" sa&in# and 7+* pe"p e ;E3G< d"n6t ha&e an' sa&in#s !"r rain' da's0 S"2 .e -an sa' that 17H Sa&in#s p a's an imp"rtant r" e in p"&ert' redu-ti"n0 S"2 this h'p"thesis is a--epted0 O&era .e -an sa' that Trainin# and edu-ati"n( - ean .ater and h'#ienien&ir"nment( Nutriti"n and adequate !""d( a--"mm"dati"n( In-"me and Sa&in#s are imp"rtant !a-t"rs "! p"&ert' redu-ti"n0 $e-ause .hen a pers"n has trainin# and edu-ati"n he -an impr"&e his i&in# standard( trainin# -an be "! an' t'pe2 aut" ."r)sh"p( m"bi e repairin# et- he -an earn in better .a'( i! a pers"n has - ean drin)in# .ater and adequate !""d he .i be sa!e !r"m &ari"us diseases( he .i be hea th' and -an ."r) in a better .a'( i! his a--"mm"dati"n is better and en"u#h !"r !ami ' members and str"n# en"u#h !r"m natura disasters he -an i&e in better .a'0 and "b&i"us ' i! his earnin# is #""d and en"u#h !"r !ami '( he -an a s" pr"&ide re-reati"na a-ti&ities t" his -hi dren and -an a s" a!!"rd un-ertain e4penses su-h as sudden #uest et- and -an a s" d" sa&in#s !"r !uture then a these thin#s p"int t".ards

a #""d i!e( i!e .ith a #""d i&in# standard and a i!e ab"&e p"&ert' ine0 S"2 a ab"&e menti"ned !a-t"rs p a's an imp"rtant r" e in p"&ert' redu-ti"n0

,!3 C"m'ari-"& "$ re-u#t- 6it. "t.er re-earc.erA--"rdin# t" Ha.i% S.a.a* A.me% ;Pa)istan< POVERTY ALLEVIATION T1RO%F1 MICRO CREDIT Va ue "! si#ni!i-an-e sh".s ;Tab eH 77< that there is a si#ni!i-ant ass"-iati"n bet.een resp"ndents6 a#e and their e-"n"mi- status a!ter uti i=in# the mi-r"?-redit0 A s" it has been !"und that mi-r" -redit bene!i-iaries !r"m a the a#e #r"ups had impr"&ement t" their e-"n"mi- status a!ter uti i=in# the mi-r"?-redit0 There is a s" a si#ni!i-ant ass"-iati"n bet.een resp"ndents6 t"ta number "! !ami ' members and their e-"n"mistatus a!ter uti i=in# the mi-r" -redit0 It has been !"und that the bene!i-iaries .ith sma er !ami ' si=e had si#ni!i-ant in-rease t" their e-"n"mi- status a!ter uti i=in# -redit as -"mpared t" th"se ha&in# #reater !ami ' si=e0 This -"u d be due t" ess e-"n"mi- pressure "n the sma er !ami ies0 There is a s" a si#ni!i-ant ass"-iati"n bet.een resp"ndents6 m"nth ' h"useh" d in-"me and their e-"n"mi- status a!ter uti i=in# the mi-r" -redit0 Further( it has been !"und that resp"ndents6 .ith #reater m"nth ' h"useh" d in-"me had better e-"n"mi- status a!ter uti i=in# the -redit( as -"mpared t" th"se .ith esser m"nth ' h"useh" d in-"me0

Ta*#e: 11 A--"ciati"&A--"ciati"&Ec"&"mic -tatu- a$ter micr" cre%it uti#i9ati"& C.i:->uare A#e Fami ' si=e T"ta in-"me a!ter -redit uti i=ati"n 7*0IB+ ,073B 77088+ %!$! E A A Si2&i$ica&ce Gamma +0+3+ +0+IA +0++B ?+0II8 +07+* +0E*+

A--"rdin# t" M".amma% Ia.a&2ir A#am C."6%.ury

T1E ROLE OF MICRO?

CREDIT IN ALLEVIATION OF POVERTYH A ST%DY OF T1E FRAMEEN $AN/ IN $ANFLADES1 sh".s better resu ts in !a&"ur "! pr"#ram h"useh" ds in terms "! s-h"" attendan-e "! E t" 7A 'ears " d -hi dren -"mpared t" that "! -"mparis"n h"useh" ds( but the -hi?square &a ue d"es n"t re5e-t the nu h'p"thesis "n s-h"" attendan-e "! E t" 7A 'ears " d -hi dren0 There!"re( there is n" si#ni!i-ant di!!eren-e bet.een the pr"#ram h"useh" ds and the -"mparis"n h"useh" ds in terms "! >s-h"" attendan-e "! E t" 7A 'ears " d -hi dren in the h"useh" d60 The t?test resu t re5e-ts the nu h'p"thesis "n >'ear ' edu-ati"na e4penditure6 i0e0 there is a si#ni!i-ant di!!eren-e bet.een the pr"#ram h"useh" ds and -"mparis"n h"useh" ds in terms "! >'ear ' edu-ati"na e4penditure60 It means that mi-r"?-redit in-reases entit ement "! pr"#ram h"useh" ds "n edu-ati"n thr"u#h in-reasin# -apabi it' t" spend m"re "n edu-ati"n "! -hi dren0 The -hi?square resu t re5e-ts the nu h'p"thesis "n >h"useh" ds rep"rtin# si-) -hi dren60 The re5e-ti"n "! the nu h'p"thesis means that there is a si#ni!i-ant di!!eren-e bet.een the pr"#ram h"useh" ds and the -"mparis"n h"useh" ds in terms "! !e.er than !i&e si-) -hi dren0 The si-)ness "! an under !i&e -hi d indi-ates the ma nutriti"n "! that -hi d and it a s" indi-ates a-) "! en"u#h -apabi it' "! the parents "! that -hi d t" pr"&ide required nutriti"us !""d t" the -hi d0 The re5e-ti"n "! the nu h'p"thesis "n >under 3 si-) -hi dren6 indi-ates that pr"#ram h"useh" ds ha&e hi#her -apabi ities t" pr"&ide required nutriti"us !""d t" their under 3 -hi dren0 The t?test resu t re5e-ts the nu h'p"thesis "n 'ear ' h"useh" d medi-a e4penditure( i0e0 there is a si#ni!i-ant di!!eren-e bet.een the pr"#ram h"useh" ds and -"mparis"n h"useh" ds in terms "! 'ear ' h"useh" d medi-a e4penditure0 This resu t re&ea s that pr"#ram h"useh" ds spend si#ni!i-ant ' hi#her am"unt "! m"ne' "n hea th and medi-a purp"ses than that "! -"mparis"n h"useh" ds0 There is a si#ni!i-ant di!!eren-e bet.een the pr"#ram h"useh" ds and -"mparis"n h"useh" ds in terms "! the immediate ast medi-a ad&i-e ta)en b' the h"useh" ds durin# the immediate ast si-)ness "! a member "! the h"useh" d as the -hi?square re5e-ts the nu h'p"thesis0 This means that pr"#ram h"useh" ds ha&e m"re abi it' t" pa' !ees "! a qua i!ied pri&ate pra-titi"ner and a s" ha&e m"re abi it' t" pur-hase medi-ine0 There!"re( the re5e-ti"n "! nu h'p"theses "n !e.er than !i&e si-) -hi dren( the a&era#e 'ear ' medi-a e4penditure "! h"useh" ds and the immediate ast medi-a ad&i-e indi-ates that mi-r"?-redit in-reases entit ement "! pr"#ram h"useh" ds "n hea th thr"u#h in-reasin# the -apabi ities "! pr"#ram h"useh" ds t"

spend m"re "n hea th0 The impa-ts "! mi-r"?-redit "n she ter ha&e been assessed thr"u#h -"mparis"n "! di!!erent indi-at"rs re ated t" she ter "! pr"#ram h"useh" ds .ith th"se "! -"mparis"n h"useh" ds0 F"r ana '=in# the she ter status "! pr"#ram h"useh" ds and -"mparis"n h"useh" ds( !"ur indi-at"rs re ated t" she ter ha&e been used0 These !"ur indi-at"rs are ;a< the a&era#e t"ta area "! i&in# spa-e( ;b< h"usin# -"nditi"n ;r""!<( ;-< h"usin# -"nditi"n ;side?.a < and ;d< the a&era#e &a ue "! d.e in# h"uses0 It sh".s that a pr"#ram h"useh" d ;++0BEG "! pr"#ram h"useh" ds< and a -"mparis"n h"useh" d ;++0B,G "! -"mparis"n h"useh" ds< ha&e a permanent r""!0 B70A*G "! pr"#ram h"useh" ds and BB07+G "! -"mparis"n h"useh" ds ha&e a r""! "! tin0 ,03AG "! pr"#ram h"useh" ds and *0*8G "! -"mparis"n h"useh" ds ha&e a r""! "! partia ' tin and partia ' ea&e0 780ABG "! pr"#ram h"useh" ds ha&e a r""! "! ea&es "n '0 On the "ther hand( 780,3G "! -"mparis"n h"useh" ds ha&e a r""! "! ea&es "n '0 It sh".s the -"nditi"n "! side?.a s "! d.e in# h"uses0 It sh".s that pr"#ram h"useh" ds ha&e better status in terms "! the -"nditi"n "! side?.a s than that "! -"mparis"n h"useh" ds0 @hi e 7303+G "! pr"#ram h"useh" ds ha&e permanent side?.a s( the per-enta#e share de-rease t" E077G !"r -"mparis"n h"useh" ds has permanent side?.a s0 Fr"m the perspe-ti&e "! side?.a s "! tin( I0E3G "! pr"#ram h"useh" ds and *0*8G "! -"mparis"n h"useh" ds ha&e this t'pe "! side?.a s( i0e0 tin0 It a s" sh".s that 7A083G "! pr"#ram h"useh" ds and 7,0A*G "! -"mparis"n h"useh" ds ha&e side?.a s "! bamb"" !en-e( A0,,G "! pr"#ram h"useh" ds and 30AIG "! -"mparis"n h"useh" ds ha&e side?.a s "! ea&es( and EB08IG "! pr"#ram h"useh" ds and E*0+*G "! -"mparis"n h"useh" ds ha&e side?.a s "! mud0 It sh".s the present mar)et &a ue "! d.e in# h"uses "! h"useh" ds0 The a&era#e &a ue "! the d.e in# h"uses "! pr"#ram h"useh" ds and -"mparis"n h"useh" ds are Ta)a AE*8, and Ta)a *783+ respe-ti&e '0 The a&era#e &a ue "! d.e in# h"uses "! pr"#ram h"useh" ds is E3G hi#her than the &a ue "! the -"mparis"n h"useh" ds0 It sh".s that t?test resu t re5e-ts the nu h'p"theses "n the a&era#e t"ta area "! i&in# spa-e "! h"useh" ds and the a&era#e &a ue "! d.e in# h"uses0 The -hi square &a ue re5e-ts the nu h'p"thesis "n the -"nditi"n "! side?.a s "! d.e in# h"uses "! h"useh" ds0 h'p"theses means that pr"#ram h"useh" ds ha&e There!"re( the re5e-ti"n "! nu

si#ni!i-ant ' hi#her a&era#e area "! i&in# spa-e( hi#herX a&era#e &a ue "! d.e in# h"uses and better -"nditi"n "! side .a s "! d.e in# h"uses than that "! -"mparis"n h"useh" ds0 It indi-ates pr"#ram h"useh" ds ha&e hi#her entit ement "n she ter -"mpared t" -"mparis"n h"useh" ds0 It sh".s the .ee) ' !""d -"nsumpti"n

e4penditure "! h"useh" ds0 The a&era#e >.ee) ' !""d -"nsumpti"n e4penditure6 "! pr"#ram h"useh" ds is Ta)a ,3,03, and the a&era#e >.ee) ' !""d -"nsumpti"n e4penditure6 "! -"mparis"n h"useh" ds is Ta)a 3,,0,30 The a&era#e >.ee) ' !""d -"nsumpti"n e4penditure6 "! pr"#ram h"useh" ds is IEG per-ent hi#her than the a&era#e >.ee) ' !""d -"nsumpti"n e4penditure6 "! -"mparis"n h"useh" ds0 It sh".s the a&ai abi it' "! !""d "! pr"#ram h"useh" ds and -"mparis"n h"useh" ds0 The pr"#ram h"useh" ds -an arran#e en"u#h !""d !"r the members "! the h"useh" d "n an a&era#e 7703, m"nths "! a 'ear0 On the "ther hand h"useh" ds -an arran#e !""d !"r the members "! the h"useh" d "n an a&era#e 80A7 m"nths "! a 'ear0 These t." a&era#es dem"nstrate that !""d is m"re a&ai ab e in pr"#ram h"useh" ds than -"mparis"n h"useh" ds0 The -"?e!!i-ient "! &ariati"n "! >a&ai abi it' "! !""d in m"nths6 "! pr"#ram h"useh" ds and -"mparis"n h"useh" ds are +07A and +0*E respe-ti&e '0 It sh".s the distributi"n "! >a&ai abi it' "! !""d in m"nths6 "! h"useh" ds0 The distributi"n a s" sh".s better distributi"n !"r pr"#ram h"useh" ds0 @hi e E*0E+G "! -"mparis"n h"useh" ds ha&e !""d de!i-it( "n ' 7+0,EG "! pr"#ram h"useh" ds ha&e !""d de!i-it0 It sh".s that the t test &a ue re5e-ts the nu h'p"thesis "n >.ee) ' !""d -"nsumpti"n e4penditure6 and >!""d a&ai abi it' "! h"useh" ds60 A--"rdin# t" A%e"#u )! Aya&6a#e and Tai6" A#imi MICRO FINANCINF AS A POVERTY ALLEVIATION MEAS%RE Resu ts "! the sa ient s"-i"e-"n"mi-hara-teristi-s "! the resp"ndents are presented in Tab e 7 be ".0 M"st ;I,0II per-ent< "! the resp"ndents !a in the a#e ran#e I7?3+ 'ears( .hi e ab"ut B+ per-ent !a bet.een A7 and 3+ 'ears "! a#e0 The re-ipients are re ati&e ' '"un# and in their pr"du-ti&e ' a-ti&e 'ears0 The #ender distributi"n is a m"st equa sin-e a simp e rand"m samp e pr"du-es an a m"st equa number "! ma e and !ema e0 Thus .e -an assert that FAD% "an s-heme is #ender sensiti&e0 M"st "! the resp"ndents ;A80+ per-ent< ha&e a !ami ' si=e "! bet.een 3 and , pe"p e( .ith the a&era#e !ami ' si=e "! 7+ pe"p e0 The a&era#e number "! 'ears spent in !"rma instituti"n is three and a ha ! 'ears0 M"st "! the resp"ndents ;AI0AB per-ent< -"mp eted their se-"ndar' s-h"" edu-ati"n( .hi e "n ' ;7I0+E per-ent< had n" !"rma edu-ati"n0 Furtherm"re m"st ;A*0,7 per-ent< "! the resp"ndents ha&e ess than 7+ 'ears "! !armin# e4perien-e0 The imp i-ati"ns "! these s"-i"?e-"n"mi- -hara-teristi-s are that 9the FAD% bene!i-iaries are edu-ated( '"un# and ha&e an a&era#e !ami ' si=e "! 7+0 The !a-t that

the' are edu-ated means the' .i "utput0

be ab e t" )eep !arm re-"rd( sin-e edu-ati"n

enab es !armers t" )eep pr"du-ti"n and !arm re-"rds and there!"re b""sts !arm FAD% en-"ura#es her bene!i-iaries t" sa&e0 Tab e * sh".s the sa&in#s patterns "! the resp"ndents0 M"st ;A*0,7 per-ent< "! the resp"ndents sa&e bet.een N7+++ and *+++ per annum( a t"#ether ab"ut E+ per-ent "! the resp"ndents sa&es bet.een N77+++ and NA++++ per annum0 The a&era#e am"unt "! sa&in#s is N*B( 3A+0++ .hi-h .as ab"ut E, per-ent "! the mean am"unt "! "an requested( .hi-h .as NI+( *3+0++0

Ta*#e 1: S"ci":ec"&"mic c.aracteri-tic- "$ re-'"&%e&t-

=aria*#e A2e ?year-< *7?A+ A7?I+ I7?3+ 37?E+ YE+ T"ta# Sex Ma e Fema e T"ta# ;ami#y -i9e I Dan , Ma' 7* Sept 7A?7E Y 7B T"ta# E%ucati"& #eve# N" !"rma edu-ati"n Primar' s-h"" -"mp eted

;re>ue&cy 3 AE B8 I7 A 7EI

J a2e A0+3 *7083 I,07B *3 70,A 7++

Mea&

IE0*, ,8 B3 7EI 7+ EI 3I *E 7+ 7++ *A AE 3I0*B I30BA

E07 A80+* A*08A 730,3 E07 7+ 7I0+* 730,3

Primar' s-h"" n"t -"mp eted Se-"ndar' s-h"" -"mp eted Se-"ndar' s-h"" n"t

, 3E

I0,, AI073

7,

7+08,

-"mp eted Territ"r' *A 7I0+* T"ta# 7EI 7++ S"ur-eH Ana 'sis "! Fie d Sur&e' Data ;*++*< Ta*#e (: Re-"urce avai#a*i#ity "$ t.e re-'"&%e&t-

A03*

=aria*#e Savi&2N"ne Z 7+(+++ N"&?++ *7?A+++ A7?I+++ I7?3+++ Y3+(+++ T"ta# Am"u&t "$ #"a& re>ue-te% Z A+(+++ A7?E+(+++ Y E+(+++ T"ta# Am"u&t "$ #"a& 2ra&te% Z 7+(+++ 7+(+++?*+(+++

;re>ue&cy *A 3A II , 7+ 7A 7EI

J 7I0+* A*0A* *E0,A I0,, E07 B08A

a2e

Mea&

IE0*,

*B3A+0+ B3 B3 7I 7EI I30BA I30BA ,03I I+*I3 IE 7E *,0+I 80BE

*7(+++?A+(+++ A7(+++?I+(+++ Y I+(+++ T"ta#

B3 78 , 7EI

I30BA 77038 I0,, A,(+++

M"st ;I308+ per-ent< "! the resp"ndents ha&e bet.een N*7+++ and NA++++ #ranted t" them as "an "ut "! the am"unt requested0 Sin-e the bene!i-iaries are -"mpe ed t" sa&e t" "btain -redit ine( b"th the ender and the b"rr".er .i s-heme( bein# sta)eh" ders the' .i ensure a su--ess "! the &enture0 The a&era#e am"unt "! "an #ranted NA,( +++ is 8I0II per-ent "! the a&era#e am"unt "! "an requested0 FAD% "ans are sh"rt time "ans that are repa'ab e .ithin "ne pr"du-ti"n seas"n( .here m"st ;E303B per-ent< "! the "an "btained is repa'ab e bet.een I t" E m"nths0 bene!it !"r the

Ta*#e +: L"a& re'ayme&t time

Re'ayme&t time ;re>ue&cy ?M"&t.-A I?E?Apr B?8 Du 7+?7* O-t T"ta# 7+, IE 7+ 7EI

Perce&ta2e E30,3 *,0+3 E07+ 7++

Tab e I sh".s the &ari"us !"rms "! assistan-e #i&en b' FAD% t" her "an bene!i-iaries0 These !"rms "! assistan-e en-"ura#e m"nit"rin# and enab e the NFO t" assess the repa'ment abi it' "! the b"rr".er "n time .ith a &ie. t" inter&ene at -riti-a peri"ds t" pre&ent de!au t0 The FAD% ta)es spe-ia interest in m"nit"rin# the "an uti i=ati"n and repa'ment as rep"rted b' m"st ;A707+ per-ent< "! the resp"ndents0 Trainin# and e&a uati"n "! the !unded pr"5e-t .as a s" a &er' imp"rtant !"rm "!

assistan-e as rep"rted b' *A07B per-ent "! the bene!i-iaries ea-h0 The rep"rted !"rms "! assistan-e ma' be resp"nsib e !"r the su--ess "! the FAD% "an s-heme0 The spe-i!i- !"rms "! assistan-e ma' need t" be n"ted b' "ther b"dies in&" &ed in mi-r" -redit de i&er' t" enhan-e their e!!e-ti&eness and p"ssib e e!!i-ien-'0

Ta*#e ,: ;AD D- a--i-ta&ce t" $armer- a$ter L"a&

;"rm "$ A--i-ta&ce M"nit"rin# and trainin# M"nit"rin# "an repa'ment and uti i=ati"n E&a uati"n pr"-ess Te-hni-a assistan-e Distributi"n "! requested !arm needs N"ne T"ta#

;re>ue&cy A, 37

Perce&ta2e *A07B A707+

A, E *7

*A07B A0EE 7*0,+

7+ 7EI

E07+ 7++0++

Tab e 3 sh".s the brea)d".n "! the s"-i"e-"n"mi- -hara-teristi-s "! the resp"ndents b' #ender0 Fr"m the tab e( it -"u d be "bser&ed that the ."men bene!i-iaries are

'"un#er in a#e *8 'ears -"mpared .ith A3 'ears !"r men( ha&e m"re 'ears a !"rma edu-ati"n A0B* 'ears -"mpared .ith A0AI 'ears !"r men0 The ."men ha&e ess 'ears "! !armin# e4perien-e 7I0*, 'ears .hi e men had **08I 'ears "! e4perien-e0 Furtherm"re( ."men ha&e ".er number "! -hi dren ;ab"ut t."< .hi e men had ab"ut three -hi dren "n the a&era#e0 In terms "! a--ess t" pr"du-ti&e res"ur-es( m"re ."men pur-hase and than men( a th"u#h m"re men "btain and b' ease( rent and #i!ts than the ."men0 In "ther ."rds a--ess t" and b' ."men is m"re b' "utri#ht pur-hase than an' "ther means2 ."men ha&e restri-ted a--ess t" and as a pr"du-ti&e &enture( e4-ept the' .ant t" pur-hase it "utri#ht .hi-h is -"st ier0 @"men seem t" ha&e ess !ami ' si=e ;ab"ut e e&en< than men ;ab"ut t.e &e<( ma'be be-ause men are pr"ne t" p" '#am' and as a -"nsequen-e ha&e m"re -hi dren0 @"men ha&e m"re h"es and -ut ass ;B08*< than men ;303+< "n the a&era#e( and( men ma)e use "! tra-t"rs m"re than ."men0 This ma' be be-ause ."men ha&e sma er !arm si=e than men( hen-e ma' n"t need the ser&i-e "! tra-t"rs0 @"men "btained m"re "ans ;NAE8++0++ !r"m FAD%( and N*3,I+ !r"m C""perati&es< "n the a&era#e than men ;NA*3++ !r"m FAD% and N*3+++ !"rm C""perati&es<0 A th"u#h men ha&e m"re "! their "an request #ranted ;E707A per-ent< than ."men6s ;3B08+ per-ent<( ."men "btain m"re "an ;N*IEE+< than men ;N*AA7+< abs" ute '0 The @"r d $an) had pres-ribed a thresh" d in-"me "! N70++ per da' as p"&ert' ine0 Resu ts "! the stud' sh".ed that men rep"rted a mean in-"me "! NB370BE( .hi e !ema e rep"rted an in-"me "! NA*E0B*0 These !i#ures are ab"&e the @"r d $an)6s minimum thresh" d in-"me "! N70++ per da'0 This is en-"ura#in# #i&en the rep"rted .idespread pre&a en-e "! p"&ert' in the -"untr'0 The am"unt "! sa&in#s a s" rep"rted trans ated t" ab"ut N**+0*I per annum .hi-h is an indi-ati"n "! the su--ess "! the FAD%6s sa&in#s m"bi i=ati"n e!!"rt0 The am"unt "! in-"me "btained b' the FAD% bene!i-iaries a s" indi-ated an impr"&ement .hen -"mpared .ith the rep"rted nati"na a&era#e in-"me e&e "! NA( BB+0 Obtained in 788B ;C$N 7888<0 Furtherm"re( the thresh" d in-"me "! FAD%6s p"tentia bene!i-iaries .as put at N*E+ per annum0 I! .e -"mpare the a&era#e annua in-"me "btained b' the bene!i-iaries the mean annua in-"me "btained NB*70BE b' men and NA*E0B* b' ."men t" the nati"na a&era#e in-"me .e -an sa!e ' assert that the .e !are "! bene!i-iaries has impr"&ed0

Ta*#e 0: Ge&%er a&a#y-i- "$ ;AD *e&e$iciarieMa#e C.aracteri-tic- Mea& Fender ,8 A#e ;'ears< I,0E8 Edu-ati"na A0AI e&e Farmin# E4perien-e ;YRS< Rent and Pur-hase and Lease Fi!t Fami ' si=e N"0 "! -hi dren 1"es Cut ass Tra-t"r Am"unt spent "n !""d Am"unt spent "n -hi dren edu-ati"n Am"unt "! "an *3 "btained -""perati&e !r"m N6+++ *30,I A0,3E[ ,0A73 730,8 78 70,A 770B3 *0A* I0IE 303+ 70AB **EA0EI E73* +0*A3 E+ 7+ 70B* 7+03 70B7 30I, B08* 707B *+E303* A,3+ **08I ;ema#e T rati" B3 IA0A, A0B* 7I0*, *08+3[ ?+087, A0AA+[

?*0B8* 70+E8 +088, +0*E 70,+A[ ?70I3E[ ?70B7+[ 70BB8 +0EB7 +0EBB

Am"unt "! "an A*03+ "btained !r"m FAD% In-"me "btained !r"m "perati"ns L"an requested N6+++ L"an #ranted N6+++ Am"unt "! -"ntributi"n N6+++ Am"unt put in -""perati&e N6+++ T"ta Sa&in#s A30,, +038 A,07A *A0A7 70II 8A08B

AE08

*0++3[

I+0,I

A0+7A[

I*038 *I0EE 70BI

?+0BA7 ?+0AI, 70*A+

+08IA

?+08A3

7B0I3

*0BB3[

A--"rdin# t" Sayee% A# Ru--e# A SOCIAL AND FINANCIAL ASSESSMENT OF MICROFINANCE FOR T1E ELTREME POOR? A CASE ST%DY FROM $ANFLADES1 0It -an be -"n- uded !r"m the data that mi-r" -redit has br"u#ht s"me p"siti&e -han#es in the i!e "! these pe"p e( m"st ' in terms "! !""d -"nsumpti"n and "ther e4penditure0 It has #i&en m"re >"pti"ns6 t" the e4treme p""r pe"p eOs i&es and the' are tr'in# t" adapt .ith these "pti"ns and -han#es t" use them su--ess!u ' in de&e "pin# their i&in# -"nditi"n0 I thin) the m"st imp"rtant -han#e has "--urred b' -reatin# a.areness in &ari"us se-t"rs "! their i&es and these -han#es are re ated dire-t ' "r indire-t ' .ith mi-r" -redit0 A m"st a the -hi dren are attendin# primar' s-h"" and pe"p e are m"re seri"us ab"ut their edu-ati"n0 Simi ar de&e "pment -an a s" be seen in hea th se-t"r i)e drin)in# .ater !r"m tube .e ( usin# sanitar' atrine( &a--inati"n "! -hi dren et-0 These -han#es ha&e "--urred n"t "n ' b' -reatin# a.areness b' the de&e "pment "r#ani=ati"ns but a s" !"r their &ari"us supp"rts and !a-i ities pr"&ided in these se-t"rs0 1".e&er( it -an n"t be said that Mi-r" -redit has -reated simi ar de&e "pment in !inan-ia -"nditi"n "! a the

pe"p e0 E4-ept the !"ur !ami ies .h" ha&e permanent in-"me durin# the .h" e 'ear( "thers sti ha&e n"t been ab e t" ma)e stab e !inan-ia base !r"m .here the' -an start !"r #radua de&e "pment0 There .as menti"n "! t." !ami ies .h" e!t the &i a#e !"r bein# unab e t" pa' the "an0 Th"u#h Mi-r" -redit has sm""thed i&in# e4pense and !""d -"nsumpti"n it has n"t been ab e t" -reate a stab e !inan-ia se-urit'0 Fr"m this perspe-ti&e it -an be said that mi-r" -redit has !ai ed t" ser&e its main purp"se !"r these pe"p e0 M"re"&er( man' - aimed that there situati"n has deteri"rated sin-e the' started ta)in# mi-r" -redit0 The' are n". su!!erin# !r"m -hr"ni- debt and ha&e t" remain ."rried a the time ab"ut .ee) ' insta ment Pe"p e are usin# mi-r" -redit t" pa' "an !r"m the traditi"na m"ne' enders and at the same time the' are a s" ta)in# "an !r"m the "-a traditi"na m"ne' enders t" pa' insta ment "! the mi-r" -redit0 It .as !"und that ab"ut si4t' per-ent "! the h"useh" ds are in debt t" the "-a m"ne' enders0 This has -reated a -ir- e am"n# the - ients( mi-r" -redit NFOs( and the "-a m"ne' enders0 The - ients ha&e de&e "ped a "an dependent i&in# pattern0 Man' - ients asserted that the' d" n"t .ant t" ta)e mi-r" -redit un ess the' !a in pr"b em and the' .i tr' n"t t" ta)e an' -redit a!ter repa'in# the e4istin# "an0 1".e&er( it .as a s" !"und that s"me h"useh" ds ta)e -redit 5ust as s""n as the' ha&e en"u#h primar' sa&in#s ;.hi-h ma)es them e i#ib e !"r ta)in# "an< .ith"ut ma)in# an' pri"r p an t" use the m"ne' !"r in-"me #enerati"n0 The distin-t nature "! the p"&ert' "! the e4treme p""r pe"p e is their &u nerab e -"nditi"n and inse-urit' in i!e0 Vi a#ers said that the' used t" star&e .hen the' did n"t ha&e an' m"ne' t" bu' !""d( n". the' are usin# mi-r" -redit t" !a-e these situati"ns0 Fr"m this p"int their i!e has be-"me ess &u nerab e t" hun#er "r disease but the' ha&e be-"me trapped in "an0 As m"st "! these e4treme ' p""r !ami ies ha&e n" re#u ar permanent in-"me "r sa&in#s and i&e !r"m da' t" da' basis it is n"t eas' !"r them t" use mi-r" -redit in the desired .a'0 Ver' "!ten the' !a in di!!i-u t situati"ns i)e i ness and !""d sh"rta#e .hen it be-"mes pri"rit' t" s" &e these pr"b ems an' h".0 The' ha&e t" ta)e mi-r" -redit "r se the in&estment "! mi-r" -redit ;ri-)sha.( -att e et-0< t" meet the needs in these situati"ns0 A the h"useh" ds ha&e !a-ed su-h situati"ns !r"m .hi-h it .as &er' hard !"r them t" re-"&er0 In -ase i! their mi-r" -redit in&estment ; i)e ri-)sha. "r -att e< #ets st" en "r dies the' ha&e t" su!!er a "t t" re-"&er !r"m the "ss0 9F"r them the "ss "! a -hi-)en is i)e the "ss "! a -". t" a !armer: an NFO ."r)er asserted0 $esides the a-) "! permanent in-"me s"ur-e there is a s" a-) "! s)i in usin# -apita

su--ess!u '0 It has t" be )ept in mind that these pe"p e are i&in# as a#ri-u tura ab"rer !"r a "n# time and the' ha&e "n# estab ished i&in# pattern0 @ith this the' a s" ha&e a -u tura and ps'-h" "#i-a -"nstru-ti"n ab"ut their i!e and ambiti"n0 The bi##est pr"b em "! their i!e is hun#er and the' are ."rried m"re ab"ut t"da' than t"m"rr".0 The' tr' t" use an' )ind "! "pp"rtunit' t" meet these pr"b ems !irst0 $esides( -han#in# !r"m the i!e "! a .a#e ab"rer t" a se ! emp "'ed entrepreneur requires ambiti"n and s)i 0 Espe-ia ' the mana#ement "! the -redit has t" be earnt and it requires time t" d" that0 @hi e tr'in# t" earn it is eas' t" ma)e mista)es and su!!er the -"nsequen-es !"r the pe"p e .h" are n"t "riented .ith su-h )ind "! pra-ti-es0 Thus mi-r" -redit( a p".er!u t"" "! de&e "pment( -an brin# the "pp"site "! the desired resu t0

CHAPTER: 0

CONCL SION

In this se-ti"n the pr"minent !indin#s "! the resear-h .i

be dis-ussed(

-"n- usi"n "! this stud'( s"me re-"mmendati"ns !"r ma)in# mi-r" -redit m"re e!!e-ti&e and use!u !"r p"&ert' a e&iati"n and imitati"ns "! the stud'0

0!1 C"&c#u-i"&

I ha&e tried t" assess the r" e "! mi-r" -redit in p"&ert' a e&iati"n thr"u#h the -"mparis"n "! i&in# standard "! b"rr".ers be!"re and a!ter use "! mi-r" -redit0 Fr"m data ana 'sis it is -"n- uded that the mi-r" -redit pr"#ram is e!!e-ti&e in #i&in# unemp "'ed pe"p e emp "'ment su-h as ta4i dri&er( sh"p )eeper et- ( and t" meet sh"rt term needs su-h as return debt ta)en !r"m s"me "ne e se( pa'in# !ee( "perati"n( treatment "! disease et-0 M"st ' b"rr".ers "! Mus im -" "n'( Dh") /a a /han( Sha)ria and Tehmaspabad ha&e used mi-r" -redit t" pur-hase ta4i( se.in# ma-hine and "penin# sma sh"p and impr"&in# a--"mm"dati"n0 $ut I ."u d sa' that a th"u#h mi-r" -redit is ."r)in# .e !"r p"&ert' redu-ti"n but sti it is n"t the "n ' .a' "n .hi-h .e -an depend0 This meth"d a s" needs impr"&ement .hi-h I ha&e e4p ained in pre&i"us -hapter0 Reas"ns !"r impr"&ement in this s'stem areH mi-r" -redit is -reatin# pe"p e tenser then the' .ere be!"re0 M"st "! the ta4i dri&ers - aim that 9$e!"re mi-r" -redit .e s ept .ith"ut mea but .e .ere n"t tense ab"ut returnin# -redit( "r ab"ut this thin# that .e ha&e n" p a-e t" par) ta4i inside h"use( .e par) it "utside and .e are ."rried that .hat .i happen i! an' "! its mirr"r is br")en as -hi dren used t" p a' "utside( .hat .i happen i! s"me"ne stea itJ These questi"ns -an6t ma)e us s eep a ni#ht: As Dr0 Y"unis said that best -ust"mers !"r mi-r" -redit is !ema es I a#ree .ith it be-ause !ema es m"st ' used t" se. - "ths !"r their !ami ' and earn !"r them( it a s" #i&es them emp".erment and the' are a s" #""d in mana#ement s" the' better mana#e t" earn su-h am"unt !r"m .hi-h the' return -redit and a s" )eep s"me m"ne' !"r their dai ' use0 On "ther hand s"me "! the ma es used t" spend s"me "! the am"unt "n their dru#s( pur-hase TV .hi-h is 5ust a "ne time in&estment0 Sti !urther resear-h is needed in this area and I thin) it ."u d be a #""d resear-h questi"n that .hether the p"&ert' a e&iati"n thr"u#h mi-r" -redit in Pa)istan is "n sustainab e basis "r is it a temp"rar' phen"men"nJ

0!( Rec"mme&%ati"&- t" ma8e micr" cre%it m"re e$$ective a&% u-e$u# i& '"verty a##eviati"&
P"&ert' redu-ti"n is n"t "n ' the tas) "! the F"&ernment and the .h" e s"-iet'( but it is !irst "! a the resp"nsibi it' "! the p""r themse &es t" de&e "p the -apa-it' t" es-ape !r"m p"&ert'0 A th"u#h it is the resp"nsibi it' "! #"&ernment t" he p e iminate s"-ia and e-"n"mi- -"nstraints and barriers in "rder t" e iminate hun#er and redu-e p"&ert'( the "ut-"me .i be .ea) i! the p""r themse &es d" n"t a-ti&e ' stri&e t" impr"&e their i&in# -"nditi"ns0 P"&ert' redu-ti"n must be seen as the missi"n "! p""r pe"p e and p""r -"mmunities themse &es2 be-ause it is their ".n se ! he p e!!"rts t" es-ape !r"m p"&ert' that is the dri&in# !"r-e and ne-essar' -"nditi"n !"r attainin# the #"a "! p"&ert' e iminati"n in a -"untries0 The State .i supp"rt the p""r t" enab e them t" earn h". t" es-ape !r"m p"&ert' and a&"id !a in# ba-) int" p"&ert' .hen ris)s be!a them0 Apart !r"m pr"&idin# dire-t materia supp"rt t" the p""r( pr"&idin# them .ith #uidan-e "n h". t" pr"du-e and d" business and h". t" de&e "p their e-"n"mi- a-ti&ities( #i&en their parti-u ar -"nditi"ns and -ir-umstan-es( is the &er' -"nditi"n !"r rapid and sustainab e a-hie&ement "! p"&ert' redu-ti"n0 A th"u#h mi-r" -redit is a #""d -"n-ept but Mi-r" !inan-e institutes in Pa)istan are ma)in# pe"p e m"re dependent then independent0 Pe"p e )n". that .hen the' .i need m"ne' the' -an ta)e it !r"m mi-r" -redit instituti"ns easi ' and .i return am"unt ba-) "n sma interest0 Pe"p e "! Pa)istan are i)e that2 I! '"u .a )ed d".n the street and #a&e e&er' passerb' rupees hundred( man' ."u d 5ust spend it ri#ht a.a' "r #amb e it rather than mana#in# it and tr'in# t" ma)e it #r". 0I ."u d sa' that purp"se "! mi-r" -redit instituti"n sh"u d be t" ma)e pe"p e independent n"t dependent( t" ma)e them ab e t" set an' s"ur-e "! in-"me !"r their !ami '0 P"&ert' redu-ti"n "b5e-ti&es sh"u d be -"nsistent and &isi"nar'H the #"a sh"u d be t" n"t "n ' impr"&e the i&in# standards "! the pe"p e( but a s" t" -reate "pp"rtunities and a e#a !"undati"n !"r impr"&in# the P""r6s inte e-tua e&e and sense "! a. -"mp ian-e t" enab e their parti-ipati"n in

the e-"n"mi-( p" iti-a and s"-ia

i!e "! the nati"n0 State p" i-ies and

me-hanisms sh"u d n"t "n ' !"-us "n !i#htin# a#ainst p"&ert' but a s" "n pre&entin# the !a in# ba-) a#ain int" p"&ert'0 First "! a mi-r" -redit instituti"ns sh"u d brie! - ients that .hat -an be the best use "! this -redit0 F"r e4amp e in Mus im C" "n'( Dh") /a a /han( Tehmaspabad and Sha)ria - ients -an )eep -".s and se its mi )( hens and -an se its e##s( "pen sh"ps( se. - "ths and dri&e ta4i( ri-)sha.0 Mi-r" -redit s'stem -an be impr"&ed in su-h a .a' ;!"r ab"&e menti"ned areas and -an be imp emented in "ther areas as .e < that mi-r" -redit instituti"ns -an d" a -"ntra-t .ith -"mpanies i)e BATA and Unilever0 Supp"se mi-r" -redit instituti"n d" a -"ntra-t .ith BATA0 Mi-r" -redit instituti"n #i&es -redit t" their - ient he then pur-hase BATA sanda s and se them in his area0 This meth"d .i be bene!i-ia !"r b"th -"mpan' and - ient0 @ith Unilever a -"ntra-t -an be made that a pers"n ta)es -redit !r"m mi-r" -redit instituti"ns and pur-hase sa-hets "! s"ap( t""thpaste and shamp"" "! %ni e&er and se them in his area0 F"r !ema e C ients mi-r" -redit instituti"ns -an ma)e a -"ntra-t .ith b"utiques and - ients -an ta)e -redit !r"m mi-r" -redit instituti"ns pur-hase a se.in# ma-hine and -an se. - "ths !"r b"utiques and -an earn in-"me !"r their !ami '0 Thr"u#h this the' -an earn en"u#h t" return -redit0 Mi-r" -redit instituti"ns sh"u d hire trainin# mana#ers "r the' sh"u d d" partnership .ith th"se instituti"ns that .i be -"re sta!!( equipped .ith basi)n". ed#e and qua i!ied t" brie! pe"p e and their dut' .i be t" train -ust"mers .ith !e.er !ees !"r the purp"se the' are ta)in# -redit0 In "ne spe-i!i- area !"r e4amp e Dh") /a a /han m"st ' trend is t" ta)e ta4i0 S"2 in this area mi-r" -redit instituti"n sh"u d hire trainin# mana#ers ;e4pert in dri&in#< "r the' -an d" partnership .ith dri&in# -enters .h" .i train them dri&e0 Other.ise -redit .i be "! n" use0 Let6s sa' -ust"mer is ta)in# m"ne' t" pur-hase a ta4i but he d"esn6t )n". dri&in# then there is n" use "! that -redit0 First he has t" earn h". t" dri&e b' pa'in# hea&' !ee t" dri&in# -entre but thr"u#h mi-r" -redit trainers he .i pr"per m"nit"rin# s'stem0 earn dri&in# in ess than ha ! !ee0 Other imp"rtant issue is M"nit"rin#0 Mi-r" -redit instituti"ns sh"u d ha&e a

Su-h a s'stem has t" be made in .hi-h a pr"per re-"rd has t" be prepared that !"r .hat purp"se -redit is ta)en it is used !"r that purp"se "r n"t0 I! n"t then .h' it is n"t used !"r that purp"seJ F"r .hi-h purp"se it is used thenJ I! it used !"r "ne time in&estment "n ' su-h as m"t"r bi)e( radi"( te e&isi"n then restri-t them and ma)e a -"nditi"n that -redit .i be "n ' #i&en !"r in-"me #eneratin# purp"se0 This am"unt -ann"t be used !"r an' "ther purp"se0 F"r this purp"se -erti!i-ate sh"u d be si#ned that 9I .i use this am"unt !"r this purp"se: and at the time .hen the -ust"mer is returnin# "an he has t" sh". its re-eipt .hi-h .i pr"&e that -redit is used !"r the purp"se it is ta)en0 Mi-r" -redit -an a s" p a' an imp"rtant r" e in p"&ert' a e&iati"n in the !"rm "! -"mmunit'0 F"r e4amp e there are t." h"uses0 The' -" e-ti&e ' ta)e "an and distribute duties0 Let6s sa' the' pur-hase hen and de-ides t" se e##s0 N".( "ne h"use ta)es resp"nsibi it' "! mar)etin# and "ther h"use ta)es resp"nsibi it' "! se in#0 And the' share pr"!it and -" e-ti&e ' return "an0 $e##ars are a s" ma5"r part "! Pa)istan6s p"pu ati"n .hi-h is t"ta ' i#n"red t" be-"me an e!!e-ti&e part "! the s"-iet'0 Mi-r" -redit instituti"ns sh"u d a s" re-ruit be##ars as their -ust"mers and turn them int" a sa es !"r-e0 The' -an "!!er sma interest !ree "ans "! ab"ut N7* .hi-h be##ars -an use t" pur-hase 9-"")ies "r t"'s: .hi-h -an be s" d0 The "an -an be paid ba-) at an'time0 In this .a' mi-r" -redit instituti"n -an p a' an imp"rtant r" e in p"&ert' a e&iati"n and ma)in# pe"p e ab e t" earn !"r their !ami '0

0!+ Limitati"&- "$ t.e -tu%y

One "! the imitati"ns "! m' stud' is that I .as n"t ab e t" spend m"re time am"n# the -"mmunit'0 It .as n"t p"ssib e !"r a number "! reas"ns0 Su-h as it .i n"t seem >n"rma 6 t" the -"mmunit' t" i&e am"n# them in "rder t" #et t" )n". ab"ut their -"nditi"n( t" "&er-"me this pr"b em I tried t" ma)e su-h questi"nnaire .hi-h .i be eas' !"r them t" read( understand and !i it0 That is .h' I trans ated questi"nnaire int" %rdu .hi-h e&er'"ne am"n# them -an read and understand0

$ut I thin) it ."u d ha&e been better i! I -"u d spend m"re time0

Re$ere&ce-

70 Abdu ah( T0 M0 ;*++3<0 Assessment "! the r" e "! mi-r" -redit in the de&e "pment "! s"-ia -apita 0 D"-t"ra Dissertati"n( Lund %ni&ersit' -entre !"r East and S"uth East Asian studies0 *0 Ade" u( $0( \ A imi( T0 ;*++I<0 Mi-r" !inan-in# as a P"&ert' a e&iati"n measure0 D"urna "! s"-ia s-ien-es( &" 0 A( *++I( Pp0 777?77B0
A0 Ahmed( P0 S0 ;*+++<0 Mi-r" -redit !inan-in# and p"&ert'

redu-ti"n( M"nth ' Mana#ement A--"untant( N"&ember? De-ember *+++( Institute "! C"st and Mana#ement A--"untants "! Pa)istan0 Pub ished "n ineH httpHCC...0humi iati"nstudies0"r#Cd"-umentsCAhmedP"&ert'A e&iati"nMi-r"-redit0pd!0
I0 Ahmed( P0 S0 ;*++*<0 P"&ert' and Mi-r" CreditH Ne. Rea ities

and Strate#ies Issues( Pa i /arma Saha'ad F"undati"n ;P/SF<( $an# adesh0 Pub ished "n ineH ...0humi iati"nstudies0"r#Cd"-umentsCAhmedP"&ert'A e&iat i"nMi-r"-redit0pd! ? 30 $is e&( A0 /0 ;*++*<0 @"men6s net."r)s and mi-r" -redit in Yunan0 D"-t"ra Dissertati"n( Department "! E-"n"mi-s( %ni&ersit' "! Stir in#( S-"t and0
E0 $urra( N0 @"men and mi-r" -reditH S"me -ha en#es N"te

prepared !"r the Nati"na C"mmissi"n "n Farmers0 Pub ished "n ineH ...0in!"rma."r d0-"mCinde4CB87A+*+*,0pd!
B0 Carne'( M0 ;788,<0 Sustainab e Li&e ih""ds Appr"a-h0

A&ai ab e "n ineH ...0p"&ert'R.e bein#0netCmediaCs aCd"-sC7?I0htm?*A) Re!eren-e a--"rdin# t" @renn( E0 ;*++3<0 Mi-r" !inan-e Literature re&ie.0 Pub ished "n ineH ...0d"-has0ieCd"-umentsCMi-r"Finan-eR iteratureRre&ie.0pd! ,0 Chambers( R0 ;788B<0 Resp"nsib e .e bein#? a pers"na a#enda !"r de&e "pment0 D"-t"ra Dissertati"n0 Institute "! de&e "pment studies( $ri#ht"n( %0/0 Re!eren-e a--"rdin# t"

@renn( E0 ;*++3<0 Mi-r" !inan-e Literature re&ie.0 Pub ished "n ineH ...0d"-has0ieCd"-umentsCMi-r"Finan-eR iteratureRre&ie.0pd! 80 Charmes( R0 ;788*<0 Imp"rtan-e "! Mi-r" Finan-e0 D"urna "! Internati"na de&e "pment and -""perati"n0 V" 0 8( issue *( Pp0 IA?E3( 788*0Re!eren-e a--"rdin# t" T0 M0 Abdu ah A Mamun0 ;*++3<0 Assessment "! the r" e "! mi-r" -redit in the de&e "pment "! s"-ia -apita 0 D"-t"ra Dissertati"n0 Lund %ni&ersit' -entre !"r East and S"uth East Asian Studies0
7+0 Ch".dhur'( M2 \ $hui'a( D0 ;*++I<0 The .ider impa-t "!

$RAC p"&ert' a e&iati"n pr"#ram in $an# adesh0 D"urna "! Internati"na de&e "pment0 V" 0 ,( issue A( Pp0 7EA?7B,( Apri *++I0 Re!eren-e a--"rdin# t" @renn( E0 ;*++3<0 Mi-r" !inan-e Literature re&ie.0 Pub ished "n ine ...0d"-has0ieCd"-umentsCMi-r"Finan-eR iteratureRre&ie.0pd! 0 770Ch".dhur'( M0 D0 ;*++*<0 The r" e "! mi-r" -redit in a e&iati"n "! p"&ert'0 D"-t"ra Dissertati"n( Department "! E-"n"mi-s( %ni&ersit' "! Stir in#( S-"t and0 7*0Ch".dhur'( M2 M"s e'( P2 \ Siman".it=( A0 ;*++I<0 The s"-ia impa-t "! mi-r"!inan-e0 D"urna "! Internati"na de&e "pment0 V" 0 7E( issue A( Pp0 83?77+( Apri *++I0 Re!eren-e a--"rdin# t" @renn( E0 ;*++3<0 Mi-r" !inan-e Literature re&ie.0 Pub ished "n ine ...0d"-has0ieCd"-umentsCMi-r"Finan-eR iteratureRre&ie.0pd! 0
7A0 C"n-ern( N0 ;*++A<0 C"n-ern Li&e ih""d se-urit' p" i-'?Dune

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7I0 1an"i( M0 ;*++*<0The -"mprehensi"n p"&ert' redu-ti"n and

#r".th strate#' ;CPFRS<0 A&ai ab e "n ineH

siteres"ur-es0."r dban)0"r#CINTISPMACRes"ur-esCTrainin#? E&ents?and?Materia sCm"nit"rin#RVietnam0pd!

730 1"ssain( F( \ /ni#ht( T0 ;*++,<0 Finan-in# the p""rH Can mi-r"

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