Impact Evaluation Of Microfinance Plus Program Of Brac Uganda

This paper aims at evaluatingthe impact of BRAC‘sprogrammesin Uganda. The study allows usto investigates the effectiveness of BRAC‘s "microfinance plus" approach in Uganda through detecting the impact of microfinance, agriculture, and health programmes separately as well as combined impact of ―microfinance and agriculture‖, and ―microfinance and health‖ programmes. The key outcome variables of interest are household income, asset, and vulnerability. The study follows quasi-experimental design to evaluate the impact of the programmes.The difference-in-difference estimates are based on a panel of 8,768 perfectly matched households.The empirical evidenceshows that the combined impact of financial and non-financial programmes issignificantly greater than that of individual programmeseparately regarding household income, savings, and vulnerability. The findings also reveal that a combination of ―microfinance and health‖ programmes is more effective than that of ―microfinance andagriculture‖ programmes since the former combination exhibitsgreater impact than later regarding aforesaid outcome variables. The expenditure on health significantly increases for the participants who receive ―microfinance and agriculture‖ serviceswhile it is unchanged for―microfinance and health‖ participants what could be the possible reason for greater impact of later group.This group mightaccess to both healthinformation and health services from microfinance group and community health promoters respectively. However, combination of financial and non-financial intervention is critical for development of the poor people while blend of microfinance and health seems more effective.

Related information

  • Writer Name: Proloy Barua
  • Published Date: Monday, 02 December 2013
  • Country: Uganda