Role of Grameen Bank in Poverty Reduction: A Study on Santhia Upazilla

Abstract

The present study is designed to make a broad analysis of the nature and dimensions of rural poverty in Bangladesh and examine the features and efficacy of poverty reduction activities of Grameen Bank by an in-depth assessment. The reduction of mass poverty has been the primary goal of all development plans. But poverty remains an intractable problem. The persistence of poverty in the country is reflected in low per capita income, unequal distribution of national incomes, high population growth, frequent natural calamity, increasing landlessness, worsening employment and declining rural wages. Nevertheless, no disagreement that the formulation of an appropriate strategy for poverty reduction remains the most fundamental development challenges for Bangladesh. Poverty is a relative and multidimensional term, some give emphasis on the lack of certain basic capabilities while some consider the different aspects of human deprivations. However, in defining poverty one common concept comes forward, and that is, poverty is said to exist in a given society when one or more persons do not attain a level of material well-being deemed to constitute a reasonable minimum by the standards of the society. 1 A report reveals that 44.33 percent (based on direct caloric intake) people of Bangladesh are absolute poor where the percentage of rural and urban absolute poor is 42.28 and 52.50 respectively. The report further shows 19.98 percent is hardcore poor in national level where rural and urban hardcore poor is 18. 72 percent and 25.02 percent respectively.2 In conformity with Human Development Report (HDR)3 2004 published by United Nations Development Program (UNDP), the position of Bangladesh is 138 out of 177. According to World Development Indicator 2003, 36.0 percent people of Bangladesh earns less than I US$ a day.4 Accordi11g to Fifth Five Year Plan,5 Poverty line-I is defined as daily intake of 2122 K.Cal per person and poverty line-II which is extreme poverty is defined as daily consumption of 1805 K.Cal per person. In fact, both kinds of poverty impede the normal activities of people and snatch away peace as well as happiness and therefore poverty should be rooted out from the society. From this view, many programs have been taken by different government and non-government organizations. The Grameen Bank founded by Professor Muhammed Yunus in I 976, was initiated as an action research project to test the hypothesis that, "if financial resources are made available to the poor at reasonable terms and condition, they can generate productive self-employment without any external assistance.6 From I 983, Grameen Bank, a well-known and pioneering non-government Organization, is playing a vital role in the field of poverty reduction activities of Bangladesh……………………………………………