Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance...

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Main Authors:	Khandker, Shahidur R., Khalily, M.A. Baqui, Samad, Hussain A.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCESS TO FOOD AGRICULTURAL ACTIVITY AGRICULTURAL LABORERS AGRICULTURE ANTI-POVERTY ASYMMETRIC INFORMATION BASIC FOODS BENEFICIARIES BETTER ACCESS TO MARKETS BORROWERS BUDGET BUFFER STOCKS CASH TRANSFERS CHECK CHRONIC POVERTY COLLATERAL CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION SMOOTHING COUNTERFACTUAL CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT MARKETS CREDIT PROGRAM CREDIT PROVISION DAILY WAGE DEFAULT DEFICITS DIMENSIONS OF POVERTY DISCOUNT DISCOUNT RATE DIVERSIFICATION DURABLE EMPLOYMENT OPPORTUNITIES EXCHANGE EXTREME POVERTY EXTREME POVERTY LINE FAMINE FAMINES FARM SECTOR FARMERS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FLEXIBLE REPAYMENT FOOD BASKET FOOD CONSUMPTION FOOD COUPONS FOOD EXPENDITURE FOOD EXPENDITURES FOOD INSECURITY FOOD INTAKE FOOD ITEMS FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FOOD SECURITY FRUITS FUTURE GOOD GOODS HAZARD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD DISTRIBUTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD NEEDS HOUSEHOLD PARTICIPATION HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME FLOWS INCOME-GENERATING ACTIVITIES INFORMAL CREDIT INFRASTRUCTURE DEVELOPMENT INSURANCE INTEREST INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LAGGING REGIONS LAND ASSETS LANDHOLDINGS LENDING LENDING PORTFOLIO LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOANS LOCAL ECONOMIES LOCAL ECONOMY LOCAL INFRASTRUCTURE LONG-TERM INVESTMENTS MARKET MEAL MEASURES MEAT MICRO-CREDIT MICRO-FINANCE MICROCREDIT MICROCREDIT PROGRAMS MICROFINANCE MICROFINANCE INSTITUTIONS MILK MORAL HAZARD NUTRITION POLITICAL ECONOMY POOR POOR BORROWERS POOR HOUSEHOLDS POOR WOMEN POVERTY INCIDENCE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY REDUCTION POVERTY STATUS PRIVATE INVESTMENTS PROPERTIES PROTEIN PROVISION OF CREDIT PUBLIC WORKS PULSES REAL INTEREST REAL INTEREST RATE REGION REGIONS REMITTANCE REMITTANCE SERVICES REMITTANCES REPAYMENT SCHEDULE RETURNS RICE RISK POOLING RURAL RURAL AREAS RURAL DEVELOPMENT RURAL POOR RURAL POVERTY RURAL POVERTY RATE SAFETY NET SAFETY NETS SAVINGS SHARE SHARES SMALL FARMERS STARVATION STOCK TARGETING TRANSFERS VEGETABLES WAGE EMPLOYMENT WELFARE INDICATORS WFP WORLD FOOD PROGRAMME
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603164741 http://hdl.handle.net/10986/3817

id	okr-10986-3817
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spelling	okr-10986-38172021-04-23T14:02:12Z Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project Khandker, Shahidur R. Khalily, M.A. Baqui Samad, Hussain A. ACCESS TO FOOD AGRICULTURAL ACTIVITY AGRICULTURAL LABORERS AGRICULTURE ANTI-POVERTY ASYMMETRIC INFORMATION BASIC FOODS BENEFICIARIES BETTER ACCESS TO MARKETS BORROWERS BUDGET BUFFER STOCKS CASH TRANSFERS CHECK CHRONIC POVERTY COLLATERAL CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION SMOOTHING COUNTERFACTUAL CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT MARKETS CREDIT PROGRAM CREDIT PROVISION DAILY WAGE DEFAULT DEFICITS DIMENSIONS OF POVERTY DISCOUNT DISCOUNT RATE DIVERSIFICATION DURABLE EMPLOYMENT OPPORTUNITIES EXCHANGE EXTREME POVERTY EXTREME POVERTY LINE FAMINE FAMINES FARM SECTOR FARMERS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FLEXIBLE REPAYMENT FOOD BASKET FOOD CONSUMPTION FOOD COUPONS FOOD EXPENDITURE FOOD EXPENDITURES FOOD INSECURITY FOOD INTAKE FOOD ITEMS FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FOOD SECURITY FRUITS FUTURE GOOD GOODS HAZARD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD DISTRIBUTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD NEEDS HOUSEHOLD PARTICIPATION HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME FLOWS INCOME-GENERATING ACTIVITIES INFORMAL CREDIT INFRASTRUCTURE DEVELOPMENT INSURANCE INTEREST INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LAGGING REGIONS LAND ASSETS LANDHOLDINGS LENDING LENDING PORTFOLIO LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOANS LOCAL ECONOMIES LOCAL ECONOMY LOCAL INFRASTRUCTURE LONG-TERM INVESTMENTS MARKET MEAL MEASURES MEAT MICRO-CREDIT MICRO-FINANCE MICROCREDIT MICROCREDIT PROGRAMS MICROFINANCE MICROFINANCE INSTITUTIONS MILK MORAL HAZARD NUTRITION POLITICAL ECONOMY POOR POOR BORROWERS POOR HOUSEHOLDS POOR WOMEN POVERTY INCIDENCE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY REDUCTION POVERTY STATUS PRIVATE INVESTMENTS PROPERTIES PROTEIN PROVISION OF CREDIT PUBLIC WORKS PULSES REAL INTEREST REAL INTEREST RATE REGION REGIONS REMITTANCE REMITTANCE SERVICES REMITTANCES REPAYMENT SCHEDULE RETURNS RICE RISK POOLING RURAL RURAL AREAS RURAL DEVELOPMENT RURAL POOR RURAL POVERTY RURAL POVERTY RATE SAFETY NET SAFETY NETS SAVINGS SHARE SHARES SMALL FARMERS STARVATION STOCK TARGETING TRANSFERS VEGETABLES WAGE EMPLOYMENT WELFARE INDICATORS WFP WORLD FOOD PROGRAMME Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance scheme that offers a flexible repayment schedule and consumption smoothing, as well as production, loans. It targets the ultra-poor, many of whom are also seasonally poor, with a severe inability to smooth consumption during certain months of the year. Besides providing loans, PRIME offers extension and training services. This paper uses a quasi-experimental survey design to evaluate PRIME against regular microfinance programs. The results show that PRIME is more effective than regular microfinance in reaching the ultra-poor, as well as the seasonal poor. PRIME also helps reduce seasonal deprivation and extreme poverty. Although the program has demonstrated its promise, it is too early to conclude whether the accrued benefits are large enough to contain both seasonal and chronic poverty on a sustained basis. 2012-03-19T18:40:21Z 2012-03-19T18:40:21Z 2010-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603164741 http://hdl.handle.net/10986/3817 English Policy Research working paper ; no. WPS 5331 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO FOOD AGRICULTURAL ACTIVITY AGRICULTURAL LABORERS AGRICULTURE ANTI-POVERTY ASYMMETRIC INFORMATION BASIC FOODS BENEFICIARIES BETTER ACCESS TO MARKETS BORROWERS BUDGET BUFFER STOCKS CASH TRANSFERS CHECK CHRONIC POVERTY COLLATERAL CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION SMOOTHING COUNTERFACTUAL CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT MARKETS CREDIT PROGRAM CREDIT PROVISION DAILY WAGE DEFAULT DEFICITS DIMENSIONS OF POVERTY DISCOUNT DISCOUNT RATE DIVERSIFICATION DURABLE EMPLOYMENT OPPORTUNITIES EXCHANGE EXTREME POVERTY EXTREME POVERTY LINE FAMINE FAMINES FARM SECTOR FARMERS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FLEXIBLE REPAYMENT FOOD BASKET FOOD CONSUMPTION FOOD COUPONS FOOD EXPENDITURE FOOD EXPENDITURES FOOD INSECURITY FOOD INTAKE FOOD ITEMS FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FOOD SECURITY FRUITS FUTURE GOOD GOODS HAZARD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD DISTRIBUTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD NEEDS HOUSEHOLD PARTICIPATION HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME FLOWS INCOME-GENERATING ACTIVITIES INFORMAL CREDIT INFRASTRUCTURE DEVELOPMENT INSURANCE INTEREST INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LAGGING REGIONS LAND ASSETS LANDHOLDINGS LENDING LENDING PORTFOLIO LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOANS LOCAL ECONOMIES LOCAL ECONOMY LOCAL INFRASTRUCTURE LONG-TERM INVESTMENTS MARKET MEAL MEASURES MEAT MICRO-CREDIT MICRO-FINANCE MICROCREDIT MICROCREDIT PROGRAMS MICROFINANCE MICROFINANCE INSTITUTIONS MILK MORAL HAZARD NUTRITION POLITICAL ECONOMY POOR POOR BORROWERS POOR HOUSEHOLDS POOR WOMEN POVERTY INCIDENCE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY REDUCTION POVERTY STATUS PRIVATE INVESTMENTS PROPERTIES PROTEIN PROVISION OF CREDIT PUBLIC WORKS PULSES REAL INTEREST REAL INTEREST RATE REGION REGIONS REMITTANCE REMITTANCE SERVICES REMITTANCES REPAYMENT SCHEDULE RETURNS RICE RISK POOLING RURAL RURAL AREAS RURAL DEVELOPMENT RURAL POOR RURAL POVERTY RURAL POVERTY RATE SAFETY NET SAFETY NETS SAVINGS SHARE SHARES SMALL FARMERS STARVATION STOCK TARGETING TRANSFERS VEGETABLES WAGE EMPLOYMENT WELFARE INDICATORS WFP WORLD FOOD PROGRAMME
spellingShingle	ACCESS TO FOOD AGRICULTURAL ACTIVITY AGRICULTURAL LABORERS AGRICULTURE ANTI-POVERTY ASYMMETRIC INFORMATION BASIC FOODS BENEFICIARIES BETTER ACCESS TO MARKETS BORROWERS BUDGET BUFFER STOCKS CASH TRANSFERS CHECK CHRONIC POVERTY COLLATERAL CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION SMOOTHING COUNTERFACTUAL CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT MARKETS CREDIT PROGRAM CREDIT PROVISION DAILY WAGE DEFAULT DEFICITS DIMENSIONS OF POVERTY DISCOUNT DISCOUNT RATE DIVERSIFICATION DURABLE EMPLOYMENT OPPORTUNITIES EXCHANGE EXTREME POVERTY EXTREME POVERTY LINE FAMINE FAMINES FARM SECTOR FARMERS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FLEXIBLE REPAYMENT FOOD BASKET FOOD CONSUMPTION FOOD COUPONS FOOD EXPENDITURE FOOD EXPENDITURES FOOD INSECURITY FOOD INTAKE FOOD ITEMS FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FOOD SECURITY FRUITS FUTURE GOOD GOODS HAZARD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD DISTRIBUTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD NEEDS HOUSEHOLD PARTICIPATION HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME FLOWS INCOME-GENERATING ACTIVITIES INFORMAL CREDIT INFRASTRUCTURE DEVELOPMENT INSURANCE INTEREST INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LAGGING REGIONS LAND ASSETS LANDHOLDINGS LENDING LENDING PORTFOLIO LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOANS LOCAL ECONOMIES LOCAL ECONOMY LOCAL INFRASTRUCTURE LONG-TERM INVESTMENTS MARKET MEAL MEASURES MEAT MICRO-CREDIT MICRO-FINANCE MICROCREDIT MICROCREDIT PROGRAMS MICROFINANCE MICROFINANCE INSTITUTIONS MILK MORAL HAZARD NUTRITION POLITICAL ECONOMY POOR POOR BORROWERS POOR HOUSEHOLDS POOR WOMEN POVERTY INCIDENCE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY REDUCTION POVERTY STATUS PRIVATE INVESTMENTS PROPERTIES PROTEIN PROVISION OF CREDIT PUBLIC WORKS PULSES REAL INTEREST REAL INTEREST RATE REGION REGIONS REMITTANCE REMITTANCE SERVICES REMITTANCES REPAYMENT SCHEDULE RETURNS RICE RISK POOLING RURAL RURAL AREAS RURAL DEVELOPMENT RURAL POOR RURAL POVERTY RURAL POVERTY RATE SAFETY NET SAFETY NETS SAVINGS SHARE SHARES SMALL FARMERS STARVATION STOCK TARGETING TRANSFERS VEGETABLES WAGE EMPLOYMENT WELFARE INDICATORS WFP WORLD FOOD PROGRAMME Khandker, Shahidur R. Khalily, M.A. Baqui Samad, Hussain A. Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
geographic_facet	South Asia South Asia South Asia Asia Bangladesh
relation	Policy Research working paper ; no. WPS 5331
description	Microfinance is often criticized for not adequately addressing seasonality and hard-core poverty. In Bangladesh, a program known as PRIME was introduced in 2006 to address both concerns. Unlike regular microfinance, PRIME introduces a microfinance scheme that offers a flexible repayment schedule and consumption smoothing, as well as production, loans. It targets the ultra-poor, many of whom are also seasonally poor, with a severe inability to smooth consumption during certain months of the year. Besides providing loans, PRIME offers extension and training services. This paper uses a quasi-experimental survey design to evaluate PRIME against regular microfinance programs. The results show that PRIME is more effective than regular microfinance in reaching the ultra-poor, as well as the seasonal poor. PRIME also helps reduce seasonal deprivation and extreme poverty. Although the program has demonstrated its promise, it is too early to conclude whether the accrued benefits are large enough to contain both seasonal and chronic poverty on a sustained basis.
format	Publications & Research :: Policy Research Working Paper
author	Khandker, Shahidur R. Khalily, M.A. Baqui Samad, Hussain A.
author_facet	Khandker, Shahidur R. Khalily, M.A. Baqui Samad, Hussain A.
author_sort	Khandker, Shahidur R.
title	Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
title_short	Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
title_full	Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
title_fullStr	Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
title_full_unstemmed	Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project
title_sort	seasonal and extreme poverty in bangladesh : evaluating an ultra-poor microfinance project
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603164741 http://hdl.handle.net/10986/3817
_version_	1764388499982647296

Seasonal and Extreme Poverty in Bangladesh : Evaluating an Ultra-Poor Microfinance Project

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