The Emergence of Credit in Development: A Case of the Grameen Bank of Bangladesh

Abstract

The purpose of this paper is to examine the new trends of credit program for income generating activities through self-employment at the grassroots level in Bangladesh. The Grameen Bank provides credit without any collateral to the rural poor to generate employment, income and self-esteem. The process that takes place in the bank is better characterized as organizational development for people's participation. This paper also analyze the difference between the member's and non-members' at the same village were living in the same socioeconomic conditions before joining the rural credit program. Empirical findings of this survey reveals that there has been a dramatic change in the Grameen Bank members' life style, such as income, education, health and nutrition and so on. This highlights the fact that poor people are able to improve their own socioeconomic conditions given an opportunity through direct participation in development activities.