Microfinance and poverty alleviation : experience in Bangladesh and Cambodia

Abstract

This paper examines the impact of microfinance on poverty reduction in Bangladesh and Cambodia. The study found that microfinance in Bangladesh and Cambodia has positive impact on poverty reduction. However, the comparison of the outcome of microfinance in these countries found that microfinance in Cambodia has lagged behind that in Bangladesh in poverty alleviation. These findings indicate that the slower contribution of microfinance in Cambodia to development is because of the programs that they have applied to the poor, the interest rate, and the infrastructure.