Impacts of Microfinance Program on Rural Households in Myanmar: An Application of Logistic Regression Model

Abstract

PACT microfinance (MF) program is the form of financial development that has its primary aim to alleviate the poverty and also which is significant source of finance for poor, lower income people in Myanmar. The objectives of this chapter are: (1) to compare the demographic and socio-economic characteristics of the clients and non-clients; (2) to indicate the impact of MF on changes in earned income, household assets, technology, education, saving, food intake, clothing, housing improvement and health aspects of the clients; and (3) to determine factors affecting on taking loans. The result showed that the respondents who are male, older, primary educational level, lower assets and lower total income are higher percentage in non-clients than clients. More than half of the clients can improve on their livelihoods such as housing condition, food intake, furniture, and health facilities with increasing rate. Household income and education expenses are also increasing however the percentage is still lower than the other categories. Therefore, PACT MF program should introduce income generating activities and effective education program which open up more income-earning opportunities for the clients especially in the non-farm sector. PACT MF is suggested to collaborate with extension services to development information program in order to disseminate the information to as many people as possible and also the program should be made easier in terms of loan procedures, legal action. More information on the advantage of taking loans should be made in order to attract peoples to join in the program.