Poverty and Wellbeing Impacts of Microfinance : What Do We Know?

Over the last 35 years, microfinance has been generally regarded as an effective policy tool in the fight against poverty. Yet, the question of whether access to credit leads to poverty reduction and improved wellbeing remains open. To address this question, we conduct a systematic review of the quantitative literature of microfinance’s impacts in the developing world, and develop a theory of change that links inputs to impacts on several welfare outcomes. Overall, we find that the limited comparability of outcomes and the heterogeneity of microfinance-lending technologies, together with a considerable variation in socio-economic conditions and contexts in which impact studies have been conducted, render the interpretation and generalization of findings intricate. Our results indicate that, at best, microfinance induces short-term dynamism in the financial life of the poor; however, we do not find compelling evidence that this dynamism leads to increases in income, consumption, human capital and assets, and, ultimately, a reduction in poverty

Interrogating Microfinance Performance beyond Products, Clients and the Environment. Insights from the work of BRAC in Tanzania

The performance of microfinance organisations can depend upon many factors. Current research emphasizes factors pertaining to clients, products, or broader environments. But researchers have paid less attention to the workings and internal systems of microfinance organisations. We explore how variation in performance within an organisation can alter the consequences of loans and their popularity among clients and potential clients. We illustrate with data from BRAC in Tanzania, where the arrival and rapid expansion of BRAC’s microfinance programme provides an apposite case study

Social Assistance in Developing Countries Database Version 5.0

The Social Assistance in Developing Countries Database is a user-friendly tool that provides summary information on social assistance interventions in developing countries. It provides a summary of the evidence available on the effectiveness of social assistance interventions in developing countries. It focuses on programmes seeking to combine the reduction and mitigation of poverty, with strengthening and facilitating household investments capable of preventing poverty and securing development in the longer term. The inclusion of programmes is on the basis of the availability of information on design features, evaluation, size, scope, or significance. Version 5 of the database updates information on existing programmes and incorporates information on pilot social assistance programmes in Latin America, Asia and Africa. It also adopts a new typology that distinguishes between social assistance programmes providing pure income transfers; programmes that provide transfers plus interventions aimed at human, financial, or physical asset accumulation; and integrated poverty reduction programmes. This new typology has, in our view, several advantages. It is a more flexible, and more accurate, template with which to identify key programme features. It provides a good entry point into the conceptual underpinnings of social assistance programmes

Allies among enemies: political authority and party (dis)loyalty in Bangladesh

The authority of political leaders in Bangladesh rests on diverse qualities, not least of which are the muscle and finance they can mobilize, and the relationships they can craft with senior party members. These are utilized to confront rivals both within and outside one’s own party, competition which can be just as fiercely fought. In some instances, the intensity of intra-party competition can be so severe, that a further quality emerges: the capacity to find allies among enemies. Building local inter-party alliances can bolster the authority of politicians, yet severely detriment party coherence. This argument is developed through an analysis of mayoral and parliamentary elections over the past decade in a small Bangladeshi city, where a ruling party MP and opposition Mayor appear to have developed such a relationship. This has thwarted the electoral ambitions of their fellow party members, posing a serious challenge to party discipline. While political competition is often seen as being inter or intra party, here it is around inter-party alliances. This portrayal suggests we need to give greater emphasis to the decentralized and local character that political authority can take in Bangladesh

The party-police nexus in Bangladesh

The use of coercion to pursue dominance over rivals is often seen as a defining feature of more ‘authoritarian’ and ‘hybrid’ political systems. In many contexts however, it is also a routine part of democracy. The difference between these arrangements then lies not so much in the presence of violence and coercion per se, but in how precisely they are organised institutionally and deployed. This is examined here through the case of Bangladesh, where, despite decades of intense and violent political competition, the ruling Awami League has solidified control through three consecutive landslide victories in general elections. Central to how this has been achieved is the empowerment of domestic security agencies, which can be seen as existing in a ‘nexus’ with the party, configured at both the national and local levels. The police in particular have been prioritised, politicised, and directed against the opposition under cover of maintaining law and order. It is then the depth of these inter-dependencies which marks Bangladesh’s recent politics. This has intensified the political entrepreneurialism of the police, and raises questions concerning the balance of power within this nexus