Alternative of Micro-Credit


Savings is a traditional practice of rural people, particularly of women in Bangladesh.  Youth folk formed club or associations in the rural areas for increasing their saving funds in a short time by giving credit to their neighbors.  About all the clubs and associations could not be sustained due to absent of long time vision or a visionary leader. But a few people from these association or club formed an money lending organization as well as micro-credit institution in Bangladesh for doing financial business.

In the above process, Micro-credit has become tool of capital mobilizer from poor people without changing the fate of people where from the credit is generated and micro-credit institution has become a wealthy financial institution. That’s why, micro-credit is becoming a controversial activity among people at the practice ground, particularly the development thinkers and practitioners worldwide.

But, we could not say, poor people could uplift their financial viability without credit or capital getting from Bank or other institutions. So, what is the alternative of micro-credit?

Micro-savings have a power which invented by rural youths unconsciously and micro-credit institutions institutionally. We need to utilize this power with a collective effort instead of any individuals. Working with some right based institution, I found, the rights based organizations have a strong capacity to mobilize the marginalized and excluded people to stand with their rights. But it could not sustained while project turned off! Most of educated people as well as institutions who aware people about right, they hardly claim their own rights for most of the time! So, what are the sustained solution, we need to re-think!

From this above context, we formed a youth group for taking collective efforts who will stand for their rights as well as expand their financial stability by savings and taking credit for enterprise development through forming a cooperative. With all the limitation, we are trying to duplicate this operative system as an alternative of micro credit.

Forget Micro-Credit: Micro-saving works much better, an interview Jeff Ashe published in From Poverty to Power blog have given us some ideas for alternative of micro-credit. But there have some questions, generally poor people have not any long time vision, so without any visionary leader or group of visionary people, how can the savings activity will sustain when funding will be turn off! We need to analyses this situation to intervene the sustainable alternative.

Alternative of Micro-Credit

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