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Inside even the most neoliberal financing agency (and Grameen sponsor), the World Bank, these lessons were by obvious by the early 1990s. Sababathy Thillairajah, an economist, had reviewed the bank’s African peasant credit programmes in 1993, and advised colleagues: ‘Leave the people alone. When someone comes and asks you for money, the best favour you can give them is to say “no”… We are all learning at the Bank. Earlier we thought that by bringing in money, financial infrastructure and institutions would be built up – which did not occur quickly.’

However, according to ODI’s Bateman, the World Bank ‘insisted on a few changes: the mantra of ‘full cost recovery’, the hard-line belief that the poor must pay the full costs of any programme ostensibly designed to help them, and the key methodology is to impose high interest rates and to reward employees as Wall Street-style motivation.’

Worryingly, in the families of some 82 per cent of female borrowers, exchange of dowry has increased since their enrolment with Grameen Bank – it seems that micro-borrowing is seen as enabling the families to pay more dowry than otherwise. Only five to 10 per cent of Grameen borrowers have showed improvement of their quality of life with the help of microcredit, and those who have done will tend to have other sources of income as well

This does not mean that credit is not useful to the poor and powerless. The problem lies in the approach taken. Poverty is conceptualised extremely narrowly, only in terms of cash income; when in fact it has to do with all aspects of life, involving both basic material needs such as food, clothing and housing; and basic human needs such as human dignity and rights, education, health and equity. It is true that the rural economy today has received some momentum from microcredit. But the questions remain: Why has this link failed to make any significant impact on poverty? Why, despite the purported ‘success’ of microcredit, do people in distress keep migrating to urban centres? Why does a famine-like situation persists in large parts of Bangladesh, particularly in the north? Moreover, why does the number of people under the poverty line keep rising – alongside the rising microcredit? In fact, poverty has its roots and causes, and expanding the credit net without addressing these will never improve any poverty situation. Experience shows that if countries such as Bangladesh rely heavily on microcredit for alleviating poverty, poverty will remain – to keep the microcredit venture alive. Grameen Bank’s ‘wonderful story’ of prosperity, solidarity and empowerment has only one problem: It never happened.