Is there a risk that in meeting urgent, short term priorities of the most vulnerable microfmance might inadvertently promote actions that might exacerbate vulnerabilities over the longer term? This is the objective of the following two sections that examine the experiences of two low income countries: Bangladesh - the home of microfmance - and neighbouring Nepal, both of which are also extremely vulnerable to the impacts of climate change. Bangladesh ranks low on practically all measures of economic development. It has a population of over 133 million people in a small area, a population density of more than 1,209 persons per km2, and 75% of the population lives in rural areas (World Bank, 2002).