A method to monitor poverty dynamics among microfinance clients: An example using survey data from Bangladesh

Emilio Hernandez-Hernandez and Mark Schreiner

MPRA Paper from University Library of Munich, Germany

Abstract: This article presents a practical methodology to monitor poverty changes among microfinance clients using available household panel data. As an example, it presents an estimation of the net number of people that rose above the $1/day poverty line while members of Grameen Bank and BRAC during 1990 to 2006. The proposed method contributes to on-going efforts from microfinance practitioners to verify whether their clients are moving out of poverty and validate management strategies aiming to target new poor clients, and increase their share of poor clients over time. Estimates show that about 6.6 million people rose above the $1/day poverty line in 1990-2006 while members of Grameen or BRAC. This represents about 40 percent of the total number of poor people that crossed this poverty line during the same time period at the national level, which validates targeting strategies to reach the poor.

Keywords: Microfinance; poverty reduction, poverty monitoring, Bangaldesh (search for similar items in EconPapers)
JEL-codes: B41 D14 E21 (search for similar items in EconPapers)
Date: 2012-01-09
New Economics Papers: this item is included in nep-hme and nep-mfd
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Published in South Asian Journal of Evaluation in Practice 1.1(2012): pp. 1-8

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