Book on Impact of Microcredit Launched
'Bring systematic change to society to cut poverty'
Staff Correspondent
Speakers at the publication ceremony of a book yesterday observed that poverty cannot be alleviated only through microcredit programme, rather a systematic change in politics and society is needed to reduce it.They said microcredit helps the poor survive in the initial stage but could not bring changes to their fate. Renowned economist and Chairman of the Centre for Policy Dialogue Prof Rehman Sobhan unveiled the cover of the book titled 'Socio-economic and indebtedness related impact of microcredit in Bangladesh' at the National Press Club in the city. Edited by Qazi Kholiquzzaman Ahmad, the book on a survey conducted among 2500 rural people was published by University Press Limited (UPL). Poverty can only be tackled through a broader political level as it is a systematic problem created by injustice of a society, said Prof Rehman Sobhan. He suggested bringing about systematic changes in society and providing assets for the poor to alleviate poverty. He also observed that poverty would never be eliminated until and unless the function of market in a market economy is democratised. Prof Rehman Sobhan also appreciated the microcredit programme as the poorest section of society are receiving loans without collateral under this programme, which also ensures a successful repayment system. "Earlier, only a limited number of people had access to bank loan, but now two million poor people became credit worthy, which is also very significant," he said. Microcredit gains popularity in the country as the formal banking system could not meet the growing demand for loans, he added. Dr Mohammed Farashuddin, former governor of Bangladesh Bank, said, "I do not think that the microcredit can bring any changes to the fate of the people." "There is no guideline in the microcredit system on how to come out of the vicious cycle of poverty," he pointed out. He also criticised the microcredit programme for its high interest rate. The value addition to microcredit is also very low, he added. Referring to the findings of the book, Qazi Kholiquazzaman said microcredit is creating obstacles to bringing changes to society. "In fact, it entraps the people into a cycle of loan," he added. Prof Moinul Islam of Chittagong University said microcredit is not the solution, only a good political party and a good government can alleviate poverty. Dr Nazmunnesa Mahtab of Dhaka University, columnist Syed Abul Maksud and Mohiuddin Ahmed of UPL also spoke.
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