Alleviating Poverty through Microfinance: Evidence from Grameen Bank

This paper examines the role of microfinance in alleviating poverty within the framework of the Grameen Bank of Bangladesh. By considering the definition of poverty given by the Grameen Bank, this paper specifically investigates the impact of microfinance on poverty alleviation. A survey that includes two separately selected samples was conducted among the respondents. The first sample was drawn from the members of the Grameen Bank and it constituted the treatment group. The second sample which constituted the control group was drawn from the households, who were not served by any microfinance institutions although they were eligible. Independent sample tests have been carried out by comparing the treatment and the control groups to observe the impact of microfinance on poverty alleviation. The results show that microfinance helps to alleviate poverty by addressing the factors that cause poverty. This implies that microfinance is an important factor for poverty alleviation. Aus. Aca. Busi & Eco. Rev Vol 2(1), January 2016, P 62-85