Social entrepreneurship
Bangladesh
Escaping poverty takes more than credit
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]
Provide an asset and initial support
Train and coach
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.
- 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.
- 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.
