Unintended Consequences of Micro-Credit in Bangladesh: An Evaluation from Human Security Perspective

Abstract

With the objective of evaluating the performance of micro-credit and its impact on poverty reduction in Bangladesh from a human security perspective, this paper identifies three unintended, yet fundamental, consequences: the exclusion of the hardcore poor from the program, producing hardcore poverty through irresponsible operation and the erosion of the value of charity. Embracing the norm of human security in micro-credit would be helpful in addressing these counter-consequences. This would require NGOs to redesign micro-credit operation in order to include all the poor, to develop social safety nets for the borrowers so that they are not pushed downwards in times of lose, and to identify alternative sources of fund so that theNGOs can continue providing charitable welfare services for the poor.