Cooperative Microfinance Myth or Reality: An Economic Analysis of the Welfare of Marginalized Segments

The present study was conducted to investigate the impact of the Cooperative (Islamic) Microfinance program on the standard of life of the poor and marginalized segments in the areas under study. Islamic microfinance program of Islamic Relief-Pakistan was taken as a model of cooperative microfinance. Primary, cross sectional data about 400 respondents (300 clients and 100 non-clients) has been collected through a detailed questionnaire, from the urban slums of Rawalpindi i-e Naseerabad , Qasimabad and Dhok Mustaqim. The socio-economic impact of the said programs on the poor marginalized groups was evaluated by Mean Difference Model (MDM) and Binary logistic models. The models were used to investigate the welfare of the respondents in terms of Income and consumption. The first model had been used to investigate the impact of Islamic Microfinance program of Islamic Relief (Pak) on the respondents’ income and consumption (Income and consumption are rottenly used as a proxy of welfare). Th