Program: Purpose: Amount: Term: Start date: Location:

Microfinance Test a new model to move people out of extreme poverty $1.3 million 3.5 years October 2008 Global

Why We Partnered

BRAC USA is an independent affiliate in the BRAC Global Group promoting effective strategies to eliminate poverty and empower the poor. BRAC Development Institute at BRAC University in Bangladesh promotes research to find practical solutions to problems faced by people living in poverty in developing countries.

Microfinance is an excellent tool for poor people with the stability and skills to operate a microenterprise. However, people at the very bottom of the economic ladder are often excluded from microfinance. They are often served by a series of safety net programs, which usually take the form of cash transfers, food aid, or guaranteed employment schemes. While safety net programs are able to alleviate poverty, they are unable to develop income-generating activities or build assets to move people out of poverty.

The program is testing a model that explores how a careful sequencing of safety nets, livelihoods, training and microfinance can create pathways for people to move out of extreme poverty. Pilot programs are underway in Ethiopia, Haiti, Honduras, India, Pakistan, Peru and Yemen. The initiative is conducted in collaboration with the Ford Foundation and Consultative Group to Assist the Poor. 

Anticipated Impact

• Create, document and promote a model that has the potential to move millions of people out of extreme poverty