Can micro-credit improve the livelihoods of the poor and disadvantaged?: Empirical observations from Bangladesh

Over the last three decades, micro-credit has gained prominence worldwide in reducing poverty on a global scale. As an efficient socio-economic financial mechanism, micro-credit enables various actors, both governmental and non-governmental, to realise their targets, among them the Millennium Development Goals. Based on research on micro-finance in central Bangladesh, this article examines and analyses the role of micro-finance institutions in promoting rural livelihoods in the country. The study reflects on recent arguments against micro-credit and shows that, despite some criticisms, micro-finance is making significant contributions to improving the livelihoods of disadvantaged rural communities. © Liverpool University Press 2009.