Assessing the Impact of Microcredit Programs on Participants’ Quality of Life: A Theoretical Framework

The important role of microcredit programs in contributing towards poverty alleviation among the poor is well acknowledged. However, in measuring the effectiveness of the loans offered to the poor, it is not sufficient to just focus on how it helps to reduce poverty level but further consideration should also be given to other terms of measurement of its efficacy; an example of such issues is participants’ quality of life. The quality of life should be valued based on a quality of an individual’s whole life which cannot be segmented and analysed separately. Therefore, the aim of this paper is to provide a rational discussion on the conceptualization of the microcredit participants’ quality of life and to contribute to the literatures in this area. This paper shows that a comprehensive measure of quality of life is needed in assessing the impact of microcredit programs.