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Social entrepreneurship

Bangladesh

Escaping poverty takes more than credit

Randomized experiment · 1,309 villages · four and seven years

BRAC

What the evidence shows

The 2017 study follows more than 21,000 households, including beneficiaries and comparison households. It identifies shifts into higher-return activities, asset accumulation and persistent poverty reduction in the population studied. [1][2]

The social organization BRAC combines a productive asset, training, coaching and support for immediate needs. The design addresses several constraints together; it is not simply microcredit. [1][2]

  1. Provide an asset and initial support

  2. Train and coach

  3. Measure income and independence over time

Costs and delivery

About US$1,120 per household, at 2007 purchasing power parity. The benefit-cost ratio is 3.21 if benefits last 20 years, but 0.82 over five years. These are duration assumptions, not returns already observed for 20 years. [1][2]

Limits of the comparison

Projected social benefits are not revenue recovered by the Treasury or a national HDI effect. The package, target population and follow-up matter when interpreting the result.

OpenGov3's interpretation

What it can teach Brazil

What combination enables productive independence without withdrawing protection before income stabilizes?

What to monitor when adapting it

  • Income, productive assets and poverty status over time
  • Changes in activity and sustained ability to earn a living independently
  • Cost of each support component per household
  • Sensitivity of projected benefits to their duration

These are criteria for analysis, not commitments already made or estimated outcomes for Brazil. A well-documented practice is not, by itself, causal proof of an entire country's success.

Sources consulted

Consulted on 10/29/2026. Each result retains its observed period; institutional descriptions and impact evaluations have different scopes.

  1. Bandiera et al. — Labor Markets and Poverty in Village Economies (2017) (opens in a new tab)

    2017 article: experiment in Bangladesh, with four- and seven-year follow-ups.

  2. J-PAL — Targeting the ultra-poor to improve livelihoods (2025) (opens in a new tab)

    J-PAL case study updated in 2025: evidence, implementation and programme expansion.