POVERTY ALLEVIATION IN DEVELOPING COUNTRIES: A SUCCESSFUL APPROACH

Microcredit has shown to be an effective tool for fighting poverty in underdeveloped countries. Microcredit may be traced back to the middle of the 1800s, thanks to the great achievements of the Grameen bank, which was created in Bangladesh in 1983. In poor nations, microfinance success stories have a big influence. This study endeavour looks at whether microcredit is an effective technique for poverty alleviation in emerging nations. Microcredit has a favourable link with poverty reduction, according to the study, and is thus an essential instrument for alleviating poverty in several nations, notably Bangladesh, Bolivia, and others. Nevertheless, there really are concerns about its potential to have a large-scale impact. The research also reveals that the impacts of microcredit on poverty reduction are a hotly discussed topic, with the broad consensus being that it is not a panacea. In general, it has fallen short of expectations. When microcredit is skillfully implemented and maintained, and services are tailored to fit the requirements of customers, it has a significant influence not just on clients, but also on their families and the wider society. It is important to stress that greater efforts should be directed toward institutional development, including adequate group strengthening, particularly for self-help groups (SHGs). The development of an efficient managerial improvement system (MIS) to support the stabilization of long-term functional delivery of services via high-performing self-help groups should be prioritised. It will also be significant. Microcredit programmes in underdeveloped nations will benefit from proper monitoring, oversight, and counselling.