Can microfinance programs address social exclusion?

This paper investigates in a Bangladeshi setting whether membership of a microfinance program reduces perceptions of social exclusion as well as impacting on poverty reduction. Using a control group that has no microfinance institution membership, it compares the responses of both members and non-members on questions relating to socio-political participation and social inclusion. The evidence is consistent with membership giving rise to reduced feelings of social exclusion compared to the control group without membership.