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The present article is intended to analyze how effective microcredit programs are in alleviating the poverty level of borrowing households in Bangladesh and the Philippines. A quasi-experimental design has been formulated to achieve this objective. The survey design covers two types of households, program households and comparison households. Program households are those which have already received more than one loan from a microcredit program. Comparison households are those which have just joined a microcredit program and therefore have not received any loans from that program. There will be a comparison between the poverty level of both households to assess the impact of microcredit on borrowing households. Adapted from the source document.

This paper examines empirically the impact of micro-credit on poverty in Bangladesh. Unlike previous studies, the focus is on both objective and subjective poverty and particular attention is paid to the length of time programme participants have had access to micro-credit. A household-level survey ( N = 954) was carried out, collecting information about micro-credit recipients from Grameen Bank, the Bangladesh Rural Advancement Committee and the Association of Social Advancement. Our two main findings are, first, micro-credit is associated with both lower objective and subjective poverty and, secondly, the impact of micro-credit on poverty is particularly strong for about six years with some levelling off after that point.