#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

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World’s 48th largest economy World’s 21st fastest growing economy Bangladesh in “next 11 countries” – Goldman Sachs “Stable economic outlook” – Moody’s

One of the potential growth economies – Price Water House Coopers

“One of the frontiers five markets” – JP Morgan Chase

MDGs Achievements MDG-1 met 5 years ahead Child mortality reduction (own UN award) Gender equality among top 10 Maternal Health improvement Remarkable progress in universal primary education

Resilience towards coping natural and other disaster and in born creativity of people towards adopting new technology

Higher Education Trust Act 2013 – Free education for girl student up to undergraduate level

Bangladesh Strength in EP Eradication

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

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Key drivers for EP eradication in Bangladesh

• Remittance inflow – Nearly 8 million migrant workers contributing $12.5 billion/year

• Microfinance – As of 2011 , 34.36 million HHs availing US$ 5.83 billion as microcredit

• Ready Made Garments (RMG) – Employ over 4.5 million worker mostly women and contribute 10.5% of GDP

• Many fold increase in Agricultural production – Employ nearly 23 million people (nearly 48% of the employment)

• Expansion of Social Safety Net Programme – Covering 9.04 million man month at a cost US$ 3.25 billion

• Human capacity development – Education, Vocational & Skill Training, Woman empowerment

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17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Microcredit Regulatory Authority (MRA)

• Government created a Microcredit Regulatory Authority (MRA) in 2006 under the Microcredit Regulatory Authority Act 2006.

• MRA is the central regulatory body to monitor and supervise microfinance operations of NGO-MFIs in Bangladesh.

• MRA promulgated Microcredit Regulatory Authority Rules 2010 in order to ensure transparent operations of Microcredit programs.

• MRA formulated many policies in the area of Microcredit operations like the Loan loss policy, the Service charge calculation policy, the Interest on savings policy and many others.

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17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Social Safety net Programs of Government

• The Government is providing supports to the poor and the destitute people under various safety net programs.

• Old-age allowance, Allowance for widow, deserted and destitute women, Vulnerable Group Feeding (VGF), Allowance for freedom fighter, Cash for works, Disaster Coping Support are the major safety net programs of the Government.

• These safety net programs support directly or indirectly the microfinance sector of the country.

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17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Poverty range based on alternative scenarios for consumption growth and distribution combined

Source: Chandy, Laurence, Natasha Ledlie and Veronika Penciakova. The Final Countdown: Prospects for Ending Extreme Poverty by 2030. Fig.3, pg. 5. © 2013, The Brookings Institution. Used with permission of the Brookings Institution.