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2. Poverty defined by United Nations Lack of basic capacity to participate effectively in society Not having enough to feed and clothe a family Not having a school or clinic to go to Not having the land to grow food or a job to earn living Not having access to credit Insecurity, powerlessness and exclusion Susceptibility to violence, living in marginal or fragile environments 2

3. Poverty defined by World Bank Low income and inability to acquire the basic goods and services: low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life. 3

4. Poverty statistics : 925 Million hungry people in 2010 Regions People Asia and the Pacific - 578 Million Sub-Saharan Africa - 239 Million Latin America & Caribbean - 53 Million Near East and North Africa - 37 Million Developed Countries -19 Million 4

5.  Banks 5 Public SectorPrivate Sector PRSP : IMF & World BankNGOs Country-driven, Result-oriented, Comprehensive, Partnership-oriented, and Based on a long-term perspective. Microfinance Social Service Target Group Approach Gender Empowerment MDGs: United Nations and OthersBanks Goals agreed to achieve by 2015: Eradicating extreme poverty, Reducing child mortality rates, Fighting disease epidemics Partnership for development Financial Inclusion Need based finance Micro Finance

6. Trickledown Approach Assumptions/Features Growth through market mechanism takes care of poverty Strategies : Market Mechanism Growth promotion Result : Benefits hardly reached the poor 6

7. Cooperative Movement Features People voluntarily cooperate to attain common socio-economic and cultural benefit. An expansion of decision-making power from a small minority to majority. Occupied by the well-to-do farmers Result : Failed to benefit the Small Farmers and Landless 7

8. Target Group Approach Strategies/Instruments Microfinance, Credit Entitlement, Group replaces collaterals Results/Outcomes Could not reach the Extreme Poor Slow graduation process High interest rate 8

9. 9 Ultra poor could not be targeted Higher rate / pricing Very basis of interest is exploitative

10. Islamic principles of poverty alleviation are based on: 10 Universal brotherhood Distributive justice Circulation of wealth Transfer payment Financial inclusion Filter Mechanism ( Moral & Market) Fellow feelings I was hungry but you didn’t feed me. But how I would be able to feed you as you are ever exalted and the Lord of the worlds! O my servant, if you be at the side of my ailing servant and soothe him, you can reach me there. Hadith al Qudsi.

11. Basic needs of Human being as defined by Islam: (a)Faith (Deen) (b)Physical self (Nafs) (c)Intellect or Knowledge (Aql) (d)Offspring (Nasl) and (e) Property (Maal). 11

12. Shatibi’s Need Prioritization 12 1. Jaruriah (Essentials) 2. Hajiah (Complementary) 3. Tahsaniah (Beautification)

13. Shariah based tool of satisfying financial needs of the poor A form of socially responsible investment. A target group approach under Islamic financing modes. 13

14. Positive Measures Income GrowthFunctional Distribution of incomeEqual Opportunity 14

15. Preventive Measures Control of Ownership Prevention of Malpractice (Riba, Mysir, Gharar etc.) 15

16. Corrective Measures Compulsory transfer: ZakatRecommended Transfer: AwqafGovernment’s Responsibility 16

17. Program addressing extreme PoorSocial Charter for poor’s capital entitlementTurning into a Credit-Plus Integrated Poverty Alleviation Scheme 17

18. Special Features of RDS Shariah based micro-finance Collateral free Farming and off-farming activities Job Creation Welfare and ethical services Quard facilitates for sanitation 18

19. Target Groups of RDS Farmers Sharecroppers Persons engaged in off-farm activities Fishermen Women and distressed people 19

20. Particulars2011National Rank No of Village12,857 4 th position Out of 1500 MFI of the Country No. of Member608,703 Disbursement (Million BDT) (Million USD) 10,438 130.48 Outstanding (Million BDT) (Million USD) 7,072 88.40 Share in IBBl’s total investment2.18% Rate of Recovery99.58% Members Savings (Million BDT) (Million USD) 2,402.13 30.02 20

21. Go for an Integrated Poverty Eradication Model (Microfinance, Zakah and Awqaf) Target the extreme poor Ensure Financial Inclusion 21

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