The contributions of microfinance organisations to reducing vulnerability to climate change [Conference Paper]
Research and policy both recognize that
Bangladesh is highly vulnerable to climate change. Bangladesh faces a variety
of climate-related hazards because of its geographical position and the
low-lying topography. Tropical cyclones with storm surges, saline water
intrusion into freshwater ecosystems, droughts, floods, sea-level rise, and
unfavorable conditions for fishing and agriculture are some of the common
climatic hazards in Bangladesh with other social challenges. In terms of
local-level organizations, it is the microfinance providers that have the
widest network involved with 60% people. The objective of this
presentation is to understand the contributions of microfinance organizations to
reducing vulnerability to climate change in Bangladesh. For this research, one
national-level and one local-level microfinance organization working in
disaster-prone areas of coastal areas in southern Bangladesh were studied as
case studies. Data were collected through interviews, focus group discussion, and participatory observations. Data are being analyzed both quantitatively and
qualitatively.
Preliminary results indicated that the
theories that explain reducing vulnerability largely depend on addressing the
root causes (i.e., poverty, power structure, demography, and marginalization) of
vulnerability were not always sufficiently addressed by the interventions of
microfinance. Even though, many households preferred to be a member of
microfinance organizations. They want to have microfinance organizations in
improving their baseline vulnerability. However, the external risks that are
posed to their livelihoods by climate and social change made them more
vulnerable. Microfinance largely ignored those uncertain, but inevitable
phenomenons. The current model of microfinance might help many households to reduce
vulnerability by meeting up their immediate survival needs after any hazards,
but not always adequately promote their growth to get out from that
vulnerability trap.
The paper was presented at a conference on
Climate Adaptation: Knowledge + Partnerships held in Hilton Hotel, Sydney,
Australia from June 25-27, 2013 organized by National Climate Change Adaptation
Research Facility (NCCARF).
It can be accessed by clicking the following link.
Access to finance is important in this modern world. Microfinance organisations are playing an pivotal role in promoting inclusive finance, particularly for the disadvantaged people.
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