Inclusion of disabled people in microfinance institutions: Where does Bangladesh stand?

Abstract

This article constitutes a summary of the literatures and practices on the microfinance industry and its contribution, the status of people with disabilities (PWDs), and the case studies for financial inclusion in Bangladesh. Many Microfinance Institutions (MFIs) are operating to serve all segments of the clients for financial inclusion. People with Disabilities encounter several exclusions in the mainstream microfinance institutions in Bangladesh. At the same time, MFIs faces numerous challenges to serve these people. Even if it is not a formal analysis, it is still found that PWDs encounter tremendous discrimination such as social, political, physical, cultural, environmental; serious barriers including formal and self-employment, less access to credit, government support and social safety net system. On the other hand, these people often put themselves into ‗benefit traps'. Microfinance institutions do not realize that many disabled people are economically active, that disabled customers expect service, and do not know how to adapt products for disabled people. The profitable partnership between MFIs and Disabled People's Organization (DPOs) are absent in practice. The government's social safety nets program is also very limited. Economic rehabilitation would come into progress when integration happens by blending social protection and necessary resources for income generation.

“We'll starve to death”: The consequences of COVID‐19 over the lives of poor people with disabilities in rural Nepal

“…While Sarker ( 2015 , 2020 ) argues that generally people with disabilities experience oppression and discrimination, it became apparent from this study that people with disabilities are experiencing further exclusions and mental stress during the COVID‐19 pandemic. Multiple studies (see Devkota et al, 2021 ; Poudel & Subedi, 2020 ) in Nepal found that COVID‐19 created severe mental health issues.…”

Población con discapacidad e inclusión financiera

“…Es por ello que urge que las estrategias sean concertadas en relación a los servicios que demandan la población con discapacidad en determinados sectores poblacionales. Es por ello que las entidades financieras deben preparar productos y servicios especializados según las necesidades de cada uno de ellos y así poder establecer una relación adecuada entre las organizaciones sean éstas públicas o privadas en beneficio del desarrollo social y económico de la población tal como lo señala Sarker (2015).…”

“…El mismo autor señala que es importante que los organismos gubernamentales apoyen este tipo de iniciativas del sector privado con la intención de poder acomodar los servicios que se ofertan a los ciudadanos con discapacidad física de cualquier tipo. Por otro lado, (Sarker, 2015), concluye que la incorporación de personas con discapacidad mediante instituciones de microfinanzas desarrolla oportunidades que pueden ser aprovechadas para la mejora de la calidad de vida de las mismas. El mismo autor señala que es importante la difusión de los mecanismos de microfinanzas en este segmento de la población, debido al hecho de que pueden generar una articulación entre los esfuerzos sociales de entidades gubernamentales y la capacidad de accesibilidad que puede tener una institución financiera.…”

Social Exclusion of People with Disability in Bangladesh: Dimensions and Challenges

“…PWD also face difficulties to get access into microfinance institutions e.g. discrimination and less access to credit as in majority cases, service providers undermine their capacity to engage in income generating activities and lack of willing and trust to serve them (Sarker, 2015).…”