PE12
Micro-financing and rural poverty reduction

Convenors:
A.H.M. Zehadul Karim (International Islamic University Malaysia)
M Zulfiquar Ali Islam (University of Rajshahi)
Location:
University Place 6.205
Start time:
8 August, 2013 at 11:00
Session slots:
1

Short abstract:

Micro-credit should be interest-free and only capital should be paid back with easily payable installment, or the rate of interest should be negligible in some cases in reducing rural poverty. It enables them to capitalize their skills and opportunities, and help them building their efficiency.

Long abstract:

Micro financing is a well accepted strategy for reducing poverty in the world especially in Asian Region. Some factors have long been constraining the productive capacities of the hard-core poor, who do not have any access to the economic opportunities of the market system and to the means of production. In the place of failure of many development programs, however, micro-financing has been suggested as an alternative strategy to address the issues of rural poverty. It is noteworthy that such credit should be interest-free and only the capital should be paid back with easily payable installment, or the rate of interest should be negligible in some cases. Micro-credit is made available to the rural poor directly, and thus to enable them to capitalize their skills and opportunities, and thus help them building their efficiency.