Published for the World Bank.

Includes bibliographical references (p. 209-217) and index.

1. Poverty Alleviation and Microcredit Programs -- 2. The Evolution of Microcredit Programs in Bangladesh -- 3. Socioeconomic Impacts of Microcredit Programs -- 4. Growth Potential of Activities Financed through Microcredit -- 5. Institutional and Financial Viability of Microcredit Programs -- 6. Microcredit Programs and Rural Financial Markets -- 7. Cost-Effectiveness of Alternative Poverty Alleviation Programs -- 8. Conclusions and Policy Implications: What Have We Learned? -- App. A. Statistical Tables -- App. B. Description of the Sample Used in the Bangladesh Institute of Development Studies-World Bank 1991/92 Survey -- App. C. Evaluating Microcredit Programs -- App. D. Resolving the Problem of Endogeneity in Estimating the Impact of Credit.

Providing microcredit to the poor has become an important antipoverty scheme in many countries. Microcredit helps the poor become self-employed and thus generates income and reduces poverty. Are these programs cost-effective? This book addresses the question, drawing on the experiences of the well-known microcredit programs of Bangladesh's Grameen Bank, the Rural Development-12 project, and the Bangladesh Rural Advancement Committee. It examines the cost-effectiveness of microcredit programs vis-a-vis other antipoverty programs, such as Food-for-Work.