Mis-targeting and Mis-using Microcredit in Livestock Development Projects in Bangladesh

This note argues that tied targeted microcredit for raising livestock is not likely to be a successful tool for livestock development if borrowers do not have comparative advantage in livestock rearing and lenders have little incentive to monitor the proper use of credit by the “right” households for the “right” kind of activities. It also examines issues of mis-targeting, mis-use and weak monitoring on the basis of the findings from the impact study of the second phase of Participatory Livestock Development Project (PLDP-II) carried out by the BIDS.