Urban microfinance and urban poverty in Bangladesh

Abstract

Studies of microfinance have hitherto focused upon rural poverty, despite the better production and marketing facilities of urban areas and the higher consumption capacity of urban populations. Since the nature and extent of urban poverty is somewhat similar to rural poverty, and since the urban poor are growing more rapidly than the rural poor, more, if not equal, emphasis should be given to reducing urban poverty. This paper describes the nature of microfinance in urban low-income communities and discusses its importance.