Banking on Social Change: Grameen Bank Lending to Women

The Grameen Bank in Bangladesh has become an international model for “microcredit” as a poverty alleviation strategy. The purpose of this paper is twofold: to evaluate the Grameen Bank as a strategy for empowering and improving the socioeconomic status of women in Bangladesh, and to identify lessons from the Grameen Bank experience that can inform development policy more generally. Arguments for and against Grameen Bank are evaluated in the light of evidence from studies of the Bank and knowledge of women and development. The conclusions that are drawn from this evaluation are that Grameen Bank is not a panacea for poverty alleviation and improving women's lives, that it has increased the income of borrowers, has led to improvements in specific aspects of their lives, and that it has potential if used in conjunction with other progressive social and economic policies to contribute to long-term, sustainable, progressive social change.