Traditional micro-credit system fails to change fate of poor

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DU Correspondent The traditional micro credit financing has failed to ensure sustainable development for the poor in the society and in some cases it pushed the poor to be poorer, said a renowned economist in the capital Saturday. "There should be a change in the existing microfinance as it only stresses on earning interests instead of benefiting the clients," Dr Qazi Kholiquzzaman Ahmad said at a discussion titled "Role of Micro Credits in Empowering Women: Limitation and Prosperity" as the chief guest. National Caucus for Woman's Economic Empowerment organised the programme at Dhaka University (DU) Senate Building. "Only 3-4 per cent micro credit borrowers were benefited while others remain poor. Most of the people who have been receiving micro credit loans for the last 15 to 20 years could not change their fortune rather lost their last recourses," Mr Ahmed, who is the chairman of Palli Karma-Sahayak Foundation (PKSF) said while quoting a research report. "We have to bring out the underprivileged people from the curse of generation to generation microfinance cycle by offering them productive occupation" he further added. He said that the first generation of micro credit system was over. Now it was time to think about the second generation. He suggested that the microfinance scheme could be transfered into project based credit system for this society. He said that the micro credit system is not an alternative method to brokerage (mohajani) business. Among others, Director General of NGO Affairs Bureau Nurun Nabi Talukder, Prof Shafique uz Zaman, department of Economics of DU and Journalist Muzammel Babu, addressed the discussion while executive director of Manusher Janno Foundation Shahin Anam presided.