Measuring the effect of Amanah Ikhtiar Malaysia's microcredit programme on economic vulnerability among hardcore poor households

This study attempted to assess the impact of Amanah Ikhtiar Malaysia’s (AIM) microcredit programme on the level of economic vulnerability among hard core poor household clients in Peninsular Malaysia. To attain the objective, this research utilized economic vulnerability index. This study employed a cross-sectional design and stratified random sampling methods. Findings showed that participation in AIM’s microcredit programme decreases the level of economic vulnerability. The study suggests that AIM should, therefore, emphasize on designing flexible and diversified financial products and delivery methods together with skill development training to improve the socio-economic condition of the hard core poor households in Malaysia

Income and employment effects of micro-credit programmes: Village-level evidence from Bangladesh

Micro-credit programmes, having made their mark in providing credit and other development services to the poor in a non-traditional way, are able to make significant changes in a rural economy. This article attempts to quantify the village-level impacts of the three most important micro-credit programmes of Bangladesh, namely Grameen Bank, Bangladesh Rural Advancement Committee (BRAC), and Bangladesh Rural Development Board's (BRDB) RD-12 project. Descriptive and econometric analyses show that these programmes have positive impacts on income, production, and employment, particularly in the rural non-farm sector. Also, growth in self-employment has been achieved at the expense of wage employment, which implies an increase in rural wages. The article emphasises that an upward shift in the labour demand curve is required for both improved productivity and wage gains on a sustainable basis, which can only be supported through a structural transformation of the rural economy.

Financial Inclusion and Social Protection: A Case for India Post

Analysis of empirical evidence from three Indian states suggests that financial inclusion strategies may be inefficient if designed without accounting for the government social protection programmes. Social protection programmes generate additional needs for financial services among the poor, meeting which can also deepen the impact of such programmes. Being a government department and the largest financial service-providing network, India Post may be most suitably located to implement such synergistic strategies. An examination of the official data on India Post indicates that the approach of diversifying its financial products to target higher-end clients in largely urban areas may not be appropriate due to its competitive disadvantage. We argue that delivery of financial services through post offices, built around social protection, may contribute to financial inclusion in rural areas while improving revenues of India Post