The role of training in reducing poverty: the case of the ultra‐poor in Bangladesh

Although microcredit is considered the main vehicle for increasing the income of the poor and alleviating poverty in Bangladesh, it is now well recognised that more than this is needed to reach the ultra poor in rural areas. Consequently, almost half of the Bangladesh population is in some way linked to non‐governmental organizations' development programmes, at the centre of which is poverty alleviation. The study reported here developed a comprehensive cross‐sectional intervention to examine whether the income of those who participated in the training programmes of non‐governmental organizations was related to that participation. The study was carried out in three leading organizations in three districts of Bangladesh using a quantitative associational research design. Three hundred responses were analysed using multiple regression analysis to elicit information from ultra poor clients who had received training. The results suggest that the post‐training income level of the trainees was negatively rather than positively related to the fact of their participation in training, the opposite of what human capital theory would lead us to expect.     

Is microcredit a blessing for the poor? A meta-analysis examining development outcomes and contextual considerations

Increasing efforts aim at economic development and the reduction of poverty in developing countries through microcredit-enabled entrepreneurship. Following the award of the Nobel Peace Prize to Prof. Yunus, microcredit lending has risen to prominence and the volume of microcredit loans has increased substantially. However, theory on the outcomes of this financing form is controversial. Furthermore, the academic community lacks conclusive empirical evidence about the impact of such programs. Primary empirical studies report fragmented and to a large extent contradictory results. In this meta-analysis, we empirically synthesize a total of 545 quantitative empirical findings from 90 studies conducted to date. Our findings reveal a positive impact of microcredit on key development outcomes at the level of the client entrepreneurs. Additionally, we scrutinize how the development context influences the effectiveness of microcredit and find that microcredit generally has a greater impact in more challenging contexts. With our findings we contribute to research on the nexus of entrepreneurship and economic development, and offer recommendations for practitioners and academics working on this promising frontier.     

Use of microcredit for household income and consumption smoothing by low income communities

This paper discusses findings of a study that investigated income, savings and consumption patterns of low income people and critical factors that influence the use of microcredit—a form of small instant loans targeted for low income people—for household income and consumption smoothing. The sample of the study consisted of households from low income communities living in a lower‐middle income country—Sri Lanka. It was found that microcredit borrowers were using the loans for purposes that can be identified as income and consumption smoothing, which is beyond the ideas and intended practice of microcredit. The findings suggest that the consequences of using microcredit for income and consumption smoothing could be costly for households and the society at large.     

统筹城乡发展中的“反哺”作用研究

内生增长模型的扩展研究表明,具有反哺意义的国家财政支出对农业增长有积极作用,并对农户的公共支出产生引致效果。实证研究显示,具有反哺意义的国家财政支出对我国农业增长有积极作用,但是与农户的公共支出之间形成了不合理的替代关系,一定程度上反映了当前我国支农财政政策的缺陷。因此,我国财政支农政策应该有别于基于公平正义理念的基本公共服务均等化,以及基于功能财政思想的相机抉择和短期调控,而扶持农业技术进步和农业的长期增长。     

Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh

Microcredit has long been hailed as a powerful tool to promote livelihoods and reduce poverty through entrepreneurship. However, its impacts on people's subjective well-being remain underexplored. We present a unified theoretical framework for analyzing the effect of microcredit-enabled entrepreneurship on overall life satisfaction – a key manifestation of subjective well-being. Empirically, we apply an instrumental variable approach to a unique census-like household survey conducted in three villages of Bangladesh in 2013. In spite of having no direct effects, we find that microcredit borrowing has an indirect negative effect on overall life satisfaction, through increased worry. On a positive note, we find that female micro-borrowers experience an increase in satisfaction with financial security and achievement in life. We also provide evidence that micro-borrowers with higher levels of assets experience an increase in satisfaction with financial security.     

中国城市老年人贫困程度的探讨

根据国际流行的贫困距指数研究方法,在中国老龄科研中心1992年调查和2000年调查数据的基础上,以城市老年人家庭作为计量单位,从支出口径探讨了中国部分省、直辖市的城市老年人90年代贫困的状况和发展趋势。对比了两次调查相同省份城市低收入老年人群体的收入变化情况。这一特定群体的老年人在90年代收入增长缓慢,有可能陷入以收入口径测量的深度贫困。对如何改善城市贫困老年人的救助提出了对策建议。     

Estimating the impact of trade specialization and trade policy on poverty in developing countries

This paper investigates the impact of trade specialization on poverty. The empirical findings show that in developing countries manufacturing exports contribute to poverty reduction. But agricultural exports have a more significant effect on poverty in low-income countries. The analysis also confirms that trade specialization reduces poverty but under specific trade specialization patterns and policy conditions.     

Microcredit: an answer to the gender problem in funding?

Microfinance institutions (MFIs) target people excluded from the traditional banking system. By providing start-up capital to these under-financed individuals, they enable a greater number of women to start their own business, particularly in sectors where initial capital requirements are high. Our study follows a portfolio of 3,640 microcredit applicants in France over the 2000–2006 time period, identifying MFI client profiles and bringing to light gender differences in borrowers compared to a wider sample of entrepreneurs. This study shows that the male–female gap found amongst company creators is also maintained amongst the clienteles of MFIs. Empirical results also suggest that gender is a decisive factor regarding the amount of credit provided to borrowers when comparing with other factors in the borrower and firm profile. Thus to a certain extent, MFIs are found to reinforce gender inequalities in France.     

Lending Risk in MFIs: The Extreme Bounds of Microeconomic and Macroeconomic Factors

Using 1,234 microfinance firms in 106 countries, this study investigates the determinants of default on the microcredit debt obligation of borrowers. Using the variant of extreme bounds analysis that systematically tests the fragility of coefficient estimates, we examine the importance of 42 variables in explaining default risk. At the micro level, the results from the modeling of model uncertainty reveal that regulation, cost per loan/cost per borrower, loan balance, borrower per loan officer, and the number of loan officers are robust factors. From the macroeconomic context, the time required to start a business and human capital are the determinants of default on debt obligations.     

Fairness and microcredit interest rates: from Rawlsian principles of justice to the distribution of the bargaining range

This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution of the benefits generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance.     

Microfinance Performance and Social Capital: A Cross-Country Analysis

In recent years, the microfinance industry has received a substantial amount of cross-border funding from both public and private sources. This funding reflects the increasing interest in microfinance as part of a more general trend towards socially responsible investments. In order to be able to secure sustained interest from these investors, it is important that the microfinance industry can show evidence of its contribution to reducing poverty at the bottom of the pyramid. For this, it is crucial to understand under what conditions microfinance institutions (MFIs) are able to reduce poverty. This paper contributes to this discussion by investigating the relationship between the extent to which social capital formation is facilitated within different societies and the financial and social performance of MFIs. This focus on social capital formation is important, because in many cases MFIs use group loans with joint liability to incentivize asset-poor borrowers to substitute the lack of physical collateral by their social capital. Hence, the success of a large part of the loan relationship between MFIs and their borrowers depends on the social capital those borrowers can bring into the contract. We carry out a cross-country analysis on a dataset containing 100 countries and identify different social dimensions as proxies for how easy social capital can be developed in different countries. We hypothesize that microfinance is more successful, both in terms of their financial and social aims, in societies that are more conducive to the development of social capital. Our empirical results support our hypothesis.     

Impact of EU agricultural policy on developing countries: A Uganda case study

Despite substantial reforms, the European Union (EU)'s Common Agricultural Policy (CAP) is still criticised for its detrimental effects on developing countries. This paper provides updated evidence on the impact of the CAP on one developing country, Uganda. It goes beyond estimating macrolevel economic effects by analysing the impacts on poverty. The policy simulation results show that eliminating EU agricultural support would have marginal but nonetheless positive impacts on the Ugandan economy and its poverty indicators. From the perspective of the EU's commitment to policy coherence for development, this supports the view that further reducing EU agricultural support would be positive for development.     

Coherence between development policy and agricultural policy

The practical shaping of the EU's common agricultural policy and the instruments used to pursue its goals are often in conflict with the development policy goal of a trade regime which offers developing countries open markets as a contribution, in the long term, to reducing the poverty gap between nations. What are the possible areas of conflict between agricultural policy and development policy? How can these policies be made more coherent?     

Globalisation and Poverty in Latin America: Some Channels and Some Evidence

This paper provides an overview of the main mechanisms through which globalisation can affect poverty and household welfare in Latin America and presents supporting evidence from different case studies in the region. One case study explores the impacts of agricultural trade liberalisation in world markets on poverty in Argentina, with an emphasis on labour income effects via real wages. The second case study examines the impacts of CAFTA on net producers and net consumers among the indigenous population in Guatemala. The analysis explores short‐run impacts as well as medium‐run impacts as households adjust farm decisions. Finally, a last exercise is set up to study the role of agricultural liberalisation on wages, employment and unemployment when there are frictions in labour markets. These case studies show that the impacts of trade on developing countries are heterogeneous. In Argentina, there are gains from liberalisation of world agriculture and higher food prices. In Guatemala, instead, the indigenous population would benefit from lower food prices. It is clear that household adjustments and complementary factors are fundamental ingredients of any reasonable evaluation of the welfare impacts of trade reforms.     

农户介入农产品流通中高附加值活动的影响因素分析——基于赣南果农的实证研究

介入农产品流通中的高附加值活动是农户分享农产品流通中增值收益的重要途径。文章以赣南脐橙种植户为例,分析了影响农户介入农产品流通价值链中高附加值活动的决定因素。研究表明,农户介入高附加值活动的行为受到户主的风险态度、种植规模、收获期农产品销售情况、户主所拥有的贮藏技术水平、政府是否提供免费的贮藏技术培训以及农户所处地区的交通状况等多方面因素的影响,并随着这些因素的变化而不断变化。在此基础上,提出了促进农户主动介入流通增值活动,分享流通增值收益的政策建议。     

农产品不公平贸易政府行为的市场动力及耦合机制研究

由于一些国家经常采取各种手段,实施不公平竞争,导致了农产品贸易摩擦的频繁发生:一方面,任何农业贸易政策都是政治市场均衡的结果。发达国家的政府为获得农业利益集团的政治支持,倾向于采取贸易保护政策。另一方面,农业目标必须与其他行业目标保持平衡,同时,农业贸易政策目标也是多元化的,存在各目标彼此协调的问题。在不确定性环境中,农业政策的形成具有连续性和惯性。     

Developing a microfinance model to break the cycle of poverty

Multigenerational poverty is common in developing countries. Illiteracy, poor health, and unemployment compound a person’s ability to break the cycle of poverty. In this article, we break down the process of designing, testing, and implementing a microfinance model to help end multigenerational poverty in an impoverished refugee village in Uganda. We describe key decisions in developing the model and assess its effectiveness as an instrument in achieving this service objective. We believe our grassroots primary research can benefit many NGOs that might be contemplating lending programs in developing nations, as well as other collegiate institutions interested in implementing sustainable programs that allow students the opportunity to work on global issues in developing nations.     

Foreign trade potential,small enterprise development and job creation in developing countries

Increasing American competitiveness in the international economy requires expanding trade with emerging markets, especially in developing countries of Asia, Latin America and Africa. Historically, as developing countries' economies have grown, the capacity for exporting and importing have both expanded. In the future, the capacity for trade in developing countries will depend increasingly on their ability to create sufficient numbers of jobs to absorb their rapidly growing labor forces.Unlike Western countries, most developing economies have a small percentage of their labor forces in large-scale manufacturing and a large share engaged in small-scale and informal sector enterprises. Small-scale enterprises have been the primary sources of labor absorption in cities in developing countries and will continue to play a crucial role in the future. Experience has shown that policies for improving the capacity of small-scale enterprises to generate jobs have had only mixed results in developing countries. The challenge facing governments and the private sector in the future include: (1) creating an economic environment conducive to small-enterprise development; (2) removing regulatory and administrative obstacles to small-enterprise expansion; (3) tailoring small-enterprise promotion programs to local conditions and needs; (4) providing capital and credit for small-business owners; (5) involving the private sector in small-enterprise development programs; and (6) providing technical assistance, training and educational programs through public-private partnerships.     

“一带一路”倡议背景下加强中印两国农业合作的构想

"一带一路"倡议的开展,为中国与沿线国家农业合作带来了新的机遇与挑战。中国和印度同为"一带一路"倡议沿线国家,近年来,双方宏观发展环境等不断改善,进入农业合作的黄金发展期。采用SWOT分析方法,剖析"一带一路"背景下,中国和印度双边农业合作的优势、劣势、机遇与挑战,指出未来农业合作应该集中在农产品贸易、农业技术合作、农业投资及共同扶贫等四方面。未来应该从建立健全宏观规划、政策支持体系、双边合作机制、项目监测与评价系统、农业合作信息平台等入手,推动中印双边农业合作深入开展。     

Can food calorie be an index for poverty in a rural economy? An extrapolation from farm households in Ogun State,Nigeria

The study assessed poverty in rural areas of Ogun State, Nigeria through the food energy (calorie) intake approach. A sample of 60 households (comprising of 346 members) were selected using a multistage sampling technique and were interviewed with the aid of well‐structured questionnaire. Data were analysed using nutrient estimation techniques, cost of calorie method and poverty index. The estimated food poverty line was 64.72 naira. The incidence, intensity and severity of poverty were consistently higher among female‐headed households and households that lack access to credit facilities with values 0.290, 0.359, 0.160 and 0.313, 0.371, 0.160 for the poverty measures respectively. Incidence of poverty reduces with educational level and age of household heads, but the corresponding intensity and severity were higher for households whose heads are between 46‐ and 55‐year brackets and those who have secondary school education. All measures of poverty decline with farm size. Multipronged strategies involving improvement of educational level of household heads, improved access to agricultural land and credit facilities, as well as fair distribution of resources towards women, among others, are recommended for poverty and hunger reduction and for sustained agricultural production.