The 2012 RUFORUM Biennial Conference is the third in the series. The main objective of the Biennial conferences is to provide a platform for agricultural research for development stakeholders in Africa and beyond to actively exchange findings and experiences, while at the same time learning lessons towards improving performance of the agricultural sector and ultimately people’s livelihoods. The biennial conference is RUFORUM’s most comprehensive meeting for the diversity of stakeholers in agriculture. It is especially dedicated to graduate students and their supervisors, grantees in RUFORUM member universities and alumni. It is a platform for peer review, quality control, mentorship, networking and shared learning. The third Biennial Conference was attended by 657 participants. This record contains an extended abstract accepted under the theme of Cross Cutting Fields.
Micro Credit Intervention in Rural Poor Households and Its Effects on Household Vulnerability to Poverty
Abstract:
Empirical studies have suggested the possibility of fuelling
vulnerability among households by microfinance programmes
through indebting the poor. Hulme and Mosley (1996) found
that there exists a tradeoff between changes in income and
vulnerability for poor households: Poverty-as measured by
income can be reduced by borrowing, but such debt can make
the poor more vulnerable because of the added risks associated
with borrowing. This study set out to establish if there exists
any direct relationship between microfinance and vulnerability
to poverty. We constructed a relative wealth index and a relative
poverty line, and observed households over a period of eighteen
months. We used a Probit model to estimate the probability
that a household becomes vulnerable in future. Both participants
in microfinance and non participants were included in the study.
Poorer people tended to take smaller loans with a more frequent
repayment period.
Des études empiriques ont suggéré la possibilité d’entretenir la
vulnérabilité des ménages par les programmes de microfinance
par le biais d’endettement des pauvres. Hulme et Mosley (1996)
ont trouvé qu’il existe un compromis entre la modification des
revenus et la vulnérabilité des ménages pauvres: la pauvreté,
telle que mesurée par le revenu, peut être réduite par l’emprunt,
mais cette dette peut rendre le pauvre plus vulnérable à cause
des risques accrus liés à l’emprunt. Cette étude visait à établir
s’il existe une relation directe entre la microfinance et la
vulnérabilité à la pauvreté. Nous avons construit un indice relatif
de richesse et un seuil relatif de pauvreté, et observé les
ménages sur une période de dix-huit mois. Nous avons utilisé
un modèle Probit pour estimer la probabilité qu’un ménage
devienne vulnérable dans l’avenir. Les participants à la
microfinance et les non-participants ont été inclus dans l’étude.
Les plus pauvres ont tendance à prendre de petits prêts avec
une période de remboursements plus fréquents.
Language:
English
Extended Abstract for Cross Cutting Fields
Date of publication:
2012
Country:
Region Focus:
East Africa
Collection:
RUFORUM Conferences and Workshops
Agris Subject Categories:
Agrovoc terms:
Additional keywords:
Licence conditions:
Open Access
Form:
Printed resource
Publisher:
Notes:
