| Poverty is a complex phenomenon. Too often it is tempting in a numerate environment to imagine that one can capture the essence of poverty in a single number, not least in the context of a country like Bangladesh. Over half of the total population (70 per cent) in Bangladesh lives in rural areas, and most of them are farmers or are involved with agro-business activities. However, much of the rural economy is stagnant. The main reason for this is inadequate public infrastructure in the rural areas of the country -- especially good roads, agricultural product storage facilities, and services such as efficient marketing facilities, education and health facilities. Government policies do not benefit the rural economy, though the whole of the national economy depends heavily on rural agro-production. Because of these obstacles, poverty has a major grip on the people in rural Bangladesh.;The MFIs' efforts, which have been ongoing for many years in many developing countries, are intended specifically to improve the economic and social conditions of the poor and, frequently, they seek to empower women. In Bangladesh, they have achieved much to alleviate poverty in many communities. This thesis discusses the main strategies that the MFIs employ to facilitate self-employment for the poor, in particular, by providing finance by way of affordable loans to these poor people who, otherwise, are routinely denied access to conventional banking financial services. The MFIs also provide support, including training and access to modern production technologies, to the poor micro-entrepreneurs for their agricultural and other ventures. Again, the MFIs create a link between government and rural people, and compel the government to focus on their plight. This way, they force the government to have some functional presence in the local rural areas where, otherwise, government is virtually absent. It is, therefore, the efforts of the MFIs that are helping to achieve the targets of the Millennium Development Goals (MDGs) in Bangladesh much more than any government efforts to this end.;Despite the above limitations, the rural people collectively undertake entrepreneurial initiatives that are supported and financed by a number of Microfinance Institutions (MFIs). These institutions work hard to help the poor micro-entrepreneurs to become free from hunger, and to gain access to education, information, and health care. These institutions have helped to reduce levels of extreme poverty among the poor across the country. As well, the MFIs have been building some infrastructure, including schools, hospitals, research centers, and shelters, to keep people safe from disasters. |
