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ECO501 - Development Economics GDB No. 1 Solution Fall 2018 Due Date: December 05, 2018

ECO501 - Development Economics GDB No. 1 Solution Fall 2018 Due Date: December 05, 2018 

Total Marks 5
Starting Date Friday, November 30, 2018
Closing Date Wednesday, December 05, 2018
Status Open
Question Title Poverty
Question Description

The Case:

In 1971, Bangladesh declared independence from Pakistan. Previously, Bangladesh had been known as East Pakistan and what is now Pakistan was called West Pakistan. Bangladesh remains a significantly poorer country, with 80% of Bangladeshis living on less than 2perday,whilethefigureisastillveryhigh591.25 per-day poverty line in Pakistan, compared with 49% in Bangladesh. But poverty progress has been impressive in the onetime “basket case” of Bangladesh, and incomes of the poorest people are rising. As one of the major reasons of poverty is the obstacles facing the poor is access to credit. The Grameen Bank of Bangladesh is an excellent illustration of how credit can be provided to the poor while minimizing the risk that resources will be wasted. Today, Grameen is a chartered financial institution with over 8.25 million borrowers among the poor and formerly poor. The branch office, covering 15 to 20 villages, is the basic organizational unit and is responsible for its profits and losses. Since its founding, the Grameen Bank has enabled several million poor Bangladeshis to start or upgrade their own small businesses. Fully 97 percent of the borrowers are women. Grameen’s emphasis on serving poor women is especially impressive.




Being a student of development economics, you are required to read the complete case studies from the text book “Economic Development” by M.P.Todaro entitled as “Comparative Economic Development: Pakistan and Bangladesh” given at the end of Chapter # 02 and “Making Microfinance Work for the Poor: The Grameen Bank of Bangladesh” given at the end of Chapter # 15. Discuss what role the Grameen Bank of Bangladesh has played in order to alleviate poverty and to improve the life of poor people in Bangladesh.

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