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The experience of the Grameen Bank of Bangladesh in community development

M. Kabir Hassan (Department of Economics and Finance, University of New Orleans, New Orleans, USA)
Luis Renteria‐Guerrero (Department of Economics, University of Sonora, Hermosillo, Sonora, Mexico)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 1 December 1997

3849

Abstract

Examines critically the Grameen Bank (GB) experience in Bangladesh in order to understand the essential elements of its operations. Reports that this unique financial institution developed the important factors needed to help the poor and that GB has replaced physical collateral requirements with group responsibility. States that by organizing poor people into groups, it has created the social and financial conditions enabling them to receive loans; it has demonstrated that the poor are bankable, capable of making good business decisions in utilizing their loans and repaying them on time. Explains that GB showed the possibility to develop a viable and self‐reliant credit programme for the poor. Concludes that the GB approach also proves that financial intermediation is a viable device to fight poverty, and an excellent vehicle for community development.

Keywords

Citation

Kabir Hassan, M. and Renteria‐Guerrero, L. (1997), "The experience of the Grameen Bank of Bangladesh in community development", International Journal of Social Economics, Vol. 24 No. 12, pp. 1488-1523. https://doi.org/10.1108/03068299710193949

Publisher

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MCB UP Ltd

Copyright © 1997, MCB UP Limited

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