Introduction - Shantanu

Introduction:
The latest trend in the developing countries is urbanization. Urbanization actually means development in the urban areas of the country and migration of the people from rural areas to those developed urban areas. [Unclear] It is good for a country to develop but on the other hand it is not good for the rural areas, which remains undeveloped. [are you going to support this assertion?] Moreover this kind of migration [what kind?] also creates a lot of pollution and economic imbalance. This is harmful for sustainable development. Sustainable development means development that will sustain [again, don't define a term by using the same term] or remain for a long time period considering factors in mind that can be responsible for future development like environment. There can be some other factors like empowerment of the poor people, which can be a big consideration for future development. If the poorest populations get their empowerment in the rural areas then it will be nothing but a proper sustainable development for a developing country and those poor people will not try to go to the urban areas for living. One of the most popular steps is microcredit for the sustainable development in Bangladesh. People can borrow money from the bank but they need to show some property to the bank against that loan. They call it collateral [use it then define it] in the language of business. But no bank is going to give loan to a poor man who doesn’t have anything as a collateral. May be if that person could get the loan he could have done a business for living and crossed the poverty line. For this reason microcredit has been introduced in Bangladesh. Microcredit is a very small amount of loan for the poor people that they can give back in very small installments through a long period of time. For small weekly installments it became very easy for them to repay back the money. As they didn’t show any kind of collateral, staffs from bank needed to know about their full information like where they live, about their neighbours and many more. This microcredit program was taken by some non-profit organizations (NGO) and later some governmental projects were also included. But the question is how far this was a real help for the poor people. There are many questions about the efficiency of the microcredit like microcredit is not reaching the vulnerable areas of the country, their interest rate is so high that they are making poor people even poorer or they are making gender conflict even worst. Microcredit was good when it was first introduced but now it is not a real help for the poor people of the rural areas of Bangladesh, it became like a burden for them. In my essay I want to analyze both positive and negative issues of microcredit and how efficient is its role for the sustainable development.

ref:

www.grameen.com

S.Amin, A.S.Rai, G.Topa(2003), “ Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh”, Journal of Development Economics, volume 70, pg 59-82.
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBV-46X2MGM-2&_user=10&_coverDate=02%2F28%2F2003&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1390333120&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=8c14e31a04ae3ef66e7db7c851c1bc5d

Mallick, Ross(2002) 'Implementing and evaluating microcredit in Bangladesh', Development in Practice, 12: 2, 153 — 163.
http://www.informaworld.com/smpp/title~content=t713412875