Dolly owns and runs “Lovely Fashion,” a tailoring shop in Tongi near Dhaka, the capital of Bangladesh. She is in her mid-twenties and earns around BDT 12,000 (USD 150) a month. “I work hard. I can support my family to live with dignity in the society,” says Dolly. “Finally I have peace of mind and financial independence.”
“Does the solar home system work? Do you really get better lights? Or, is it just a big fuss?’ I have been asking solar home systems households in rural Bangladesh these basic questions for the past five years as part of my implementation review missions for the Rural Electrification and Renewable Energy Development program, which has installed over 2.8 million solar home systems since 2002. This has so far contributed to a 9% increase in access to electricity in Bangladesh.
When I heard the news last autumn that 15-year-old Malala Yousafzai of Pakistan had been shot simply for standing up for her right as a girl to get an education, I was horrified.
It also reminded me how lucky I was.
When I was offered a rare scholarship to study abroad, it wasn’t acceptable for me, as a young married Indonesian woman, to live apart from my husband. My mother laid out two options: Either he would join me, which meant giving up his job, or I had to decline the offer.
I know it was her way to advocate for my husband to support me, which he did without hesitation. We both went to the United States to complete our master’s degrees. I combined it with a doctorate in economics, and we had our first child, a daughter, while we both were graduate students.
With spectacular growth of microfinance institutions (MFIs) in Bangladesh, there is a growing concern that borrowers might be borrowing from multiple sources and more than they are able to repay, and hence, they are trapped in poverty and debt. Microfinance programs, operating in Bangladesh for more than two decades, have reached more than 10 million households in 2008, nearly half the rural population, with an annual disbursement close to US$1.8 billion and an outstanding balance of US$1.5 billion. Multiple program membership has increased over the years: it was nonexistent in 1991/92, 11.9 percent in 1998/99 and 36 percent in 2010/11.
However, a recent study shows that increased borrowing, even from multiple sources, has not lowered loan recovery rates.
Also, another recent study observes that microcredit borrowers are not necessarily trapped in poverty and debt. This study analyzes data from a long panel survey over a 20-year period, and finds that although many participants have been with microcredit programs for many years they are not necessarily trapped in debt as the accrued assets due to borrowing outweigh accumulated debt for many borrowers.
How can countries create 600 million jobs for its citizens?
As the World Bank convenes its Spring Meetings in Washington this week to discuss the state of international development, the question on everyone’s mind is: How to restart growth and create jobs?
Job creation on an unprecedented scale is needed to avoid severe social dislocation: About 22 million jobs were lost worldwide during the global financial crisis – at a time when many developing countries face an explosion in their working-age population. According to the Bank’s “World Development Report 2013,” 600 million jobs need to be created in the next 15 years just to maintain current employment rates.