Walking on two legs: Credit plus grant approach to poverty reduction

There is a growing recognition that the ultra-poor are generally not integrated into the current anti-poverty programs. In this paper, we estimate the long-run impacts of a credit plus grant approach, a combination of microcredit, training and some grants, mostly in the form of consumption stipend,...

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Prif Awduron:	Ara, Jinnat, Das, Narayan Chandra, Kamruzzaman, Md, Quayyum, Tasmeen
Fformat:	Working Paper
Iaith:	en_US
Cyhoeddwyd:	BRAC Research and Evaluation Division 2022
Pynciau:	Income Labour supply Microcredit Ultra-poor
Mynediad Ar-lein:	http://hdl.handle.net/10361/15855

id	10361-15855
record_format	dspace
spelling	10361-158552022-01-10T21:01:47Z Walking on two legs: Credit plus grant approach to poverty reduction Ara, Jinnat Das, Narayan Chandra Kamruzzaman, Md Quayyum, Tasmeen Income Labour supply Microcredit Ultra-poor There is a growing recognition that the ultra-poor are generally not integrated into the current anti-poverty programs. In this paper, we estimate the long-run impacts of a credit plus grant approach, a combination of microcredit, training and some grants, mostly in the form of consumption stipend, on the livelihoods of the ultra-poor. Using longitudinal panel data (2012-2016), we show that the intervention increased labour supply, income, and food consumption. We also document a large positive effect on productive assets. The effects on most of the outcomes of interest have been found to be increasing over time. For instance, the program increased productive asset values by 142 per cent and 259 per cent in the short-run (after two years of the intervention) and long-run (after four years of the intervention), respectively. Similarly, per capita real income increased by 37 per cent in the long run against 35 per cent in the short run. We also document positive effects on non-food expenditure and savings behaviour. Cost-benefit analysis shows that the average benefits of the program are 6.65 times larger than its costs. These findings indicate that microcredit can sustainably reduce ultra-poverty if some additional supports are combined with it. 2022-01-10T06:33:19Z 2022-01-10T06:33:19Z 2017 2017 Working Paper http://hdl.handle.net/10361/15855 en_US https://bigd.bracu.ac.bd/publications/walking-on-two-legs-credit-plus-grant-approach-to-poverty-reduction/ application/pdf BRAC Research and Evaluation Division
institution	Brac University
collection	Institutional Repository
language	en_US
topic	Income Labour supply Microcredit Ultra-poor
spellingShingle	Income Labour supply Microcredit Ultra-poor Ara, Jinnat Das, Narayan Chandra Kamruzzaman, Md Quayyum, Tasmeen Walking on two legs: Credit plus grant approach to poverty reduction
description	There is a growing recognition that the ultra-poor are generally not integrated into the current anti-poverty programs. In this paper, we estimate the long-run impacts of a credit plus grant approach, a combination of microcredit, training and some grants, mostly in the form of consumption stipend, on the livelihoods of the ultra-poor. Using longitudinal panel data (2012-2016), we show that the intervention increased labour supply, income, and food consumption. We also document a large positive effect on productive assets. The effects on most of the outcomes of interest have been found to be increasing over time. For instance, the program increased productive asset values by 142 per cent and 259 per cent in the short-run (after two years of the intervention) and long-run (after four years of the intervention), respectively. Similarly, per capita real income increased by 37 per cent in the long run against 35 per cent in the short run. We also document positive effects on non-food expenditure and savings behaviour. Cost-benefit analysis shows that the average benefits of the program are 6.65 times larger than its costs. These findings indicate that microcredit can sustainably reduce ultra-poverty if some additional supports are combined with it.
format	Working Paper
author	Ara, Jinnat Das, Narayan Chandra Kamruzzaman, Md Quayyum, Tasmeen
author_facet	Ara, Jinnat Das, Narayan Chandra Kamruzzaman, Md Quayyum, Tasmeen
author_sort	Ara, Jinnat
title	Walking on two legs: Credit plus grant approach to poverty reduction
title_short	Walking on two legs: Credit plus grant approach to poverty reduction
title_full	Walking on two legs: Credit plus grant approach to poverty reduction
title_fullStr	Walking on two legs: Credit plus grant approach to poverty reduction
title_full_unstemmed	Walking on two legs: Credit plus grant approach to poverty reduction
title_sort	walking on two legs: credit plus grant approach to poverty reduction
publisher	BRAC Research and Evaluation Division
publishDate	2022
url	http://hdl.handle.net/10361/15855
work_keys_str_mv	AT arajinnat walkingontwolegscreditplusgrantapproachtopovertyreduction AT dasnarayanchandra walkingontwolegscreditplusgrantapproachtopovertyreduction AT kamruzzamanmd walkingontwolegscreditplusgrantapproachtopovertyreduction AT quayyumtasmeen walkingontwolegscreditplusgrantapproachtopovertyreduction
_version_	1814307727414919168

Walking on two legs: Credit plus grant approach to poverty reduction

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