Plenary - Ending Extreme Poverty 17th Microcredit Summit 2014 Summit

1. Bangladesh Strength in EP Eradication
 World’s 48th largest economy
 World’s 21st fastest growing economy
 Bangladesh in “next 11 countries” – Goldman Sachs
 “Stable economic outlook” – Moody’s
 One of the potential growth economies – Price Water House Coopers
 “One of the frontiers five markets” – JP Morgan Chase
 MDGs Achievements
17TH MICROCREDIT SUMMIT
#17MCSum
GENERATION NEXT: INNOVATIONS IN MICROFINANCE
mit
 MDG-1 met 5 years ahead
 Child mortality reduction (own UN award)
 Gender equality among top 10
 Maternal Health improvement
 Remarkable progress in universal primary education
 Resilience towards coping natural and other disaster and in born creativity
of people towards adopting new technology
 Higher Education Trust Act 2013 – Free education for girl student up to
undergraduate level
1

2. Key drivers for EP eradication in Bangladesh
• Remittance inflow – Nearly 8 million migrant workers contributing
$12.5 billion/year
• Microfinance – As of 2011 , 34.36 million HHs availing US$ 5.83 billion
as microcredit
• Ready Made Garments (RMG) – Employ over 4.5 million worker mostly
women and contribute 10.5% of GDP
• Many fold increase in Agricultural production – Employ nearly 23
million people (nearly 48% of the employment)
• Expansion of Social Safety Net Programme – Covering 9.04 million man
month at a cost US$ 3.25 billion
• Human capacity development – Education, Vocational & Skill Training,
Woman empowerment
17TH MICROCREDIT SUMMIT
#17MCSum
mit
2
GENERATION NEXT: INNOVATIONS IN MICROFINANCE

3. 17TH MICROCREDIT SUMMIT
#17MCSum
GENERATION NEXT: INNOVATIONS IN MICROFINANCE
mit
Microcredit Regulatory Authority (MRA)
• Government created a Microcredit Regulatory Authority (MRA) in
2006 under the Microcredit Regulatory Authority Act 2006.
• MRA is the central regulatory body to monitor and supervise
microfinance operations of NGO-MFIs in Bangladesh.
• MRA promulgated Microcredit Regulatory Authority Rules 2010 in
order to ensure transparent operations of Microcredit programs.
• MRA formulated many policies in the area of Microcredit operations
like the Loan loss policy, the Service charge calculation policy, the
Interest on savings policy and many others.

4. Social Safety net Programs of Government
• The Government is providing supports to the poor and the
17TH MICROCREDIT SUMMIT
#17MCSum
GENERATION NEXT: INNOVATIONS IN MICROFINANCE
mit
destitute people under various safety net programs.
• Old-age allowance, Allowance for widow, deserted and
destitute women, Vulnerable Group Feeding (VGF),
Allowance for freedom fighter, Cash for works, Disaster
Coping Support are the major safety net programs of the
Government.
• These safety net programs support directly or indirectly
the microfinance sector of the country.

5. Poverty range based on alternative scenarios for
consumption growth and distribution combined
17TH MICROCREDIT SUMMIT
#17MCSum
GENERATION NEXT: INNOVATIONS IN MICROFINANCE
mit
Source: Chandy, Laurence, Natasha Ledlie and Veronika Penciakova. The Final Countdown: Prospects for
Ending Extreme Poverty by 2030. Fig.3, pg. 5. © 2013, The Brookings Institution. Used with permission
of the Brookings Institution.