Micro Credit as a Poverty Alleviation Tool in Turkey: A Case Study Analysis of Turkish Grameen Micro Credit Project

Abstract

Turkish Grameen Micro-credit Project (TGMP) follows Grameen Generalized System (GGS) which is designed to create new possibilities for a Grameen Bank Bangladesh(GBB) replication program  by offering a simple and beneficial micro credit for improving poverty status of women in Turkey. Although GBB is known worldwide for its success in providing tiny credit without collateral to the poor women specially, still there have some controversy and questions about the methods and applications of the replication programs implemented in different parts of the world. The main objective of this study is to find the success of TGMP by evaluating some important factors related to the success of GBB replication program. By evaluating the program success of TGMP in eradicating extreme poverty, and improving the status of members' socio-economic life, this study concludes that it is quite successful till recent year as the GBB replication program specially in yearly performance, financial viability status, and loan performances of the members. Although TGMP has been proved successful in Turkey since 2003, it is recommended that necessary steps should be taken for its long-run success as a replication program of GBB with special concerns about financial sustainability, increase of growth oriented activities instead of home based loan activities and lending rate enhancement. 

JEL classification: G21, O16, L31