Does microfinance really empower? : A study on the contribution of microfinance in empowering the poor women of northern Bangladesh
Bhusal, Manoj (2010)
Bhusal, Manoj
Diakonia-ammattikorkeakoulu
2010
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2010112315233
https://urn.fi/URN:NBN:fi:amk-2010112315233
Tiivistelmä
The aim of the study was to describe the impact of microfinance in empowering the women of northern Bangladesh. The study also aimed at assessing the effectiveness and outreach of NGOs and Microfinance Institutions (MFIs) in addressing the financial needs of the poor. A comparative study of long-term and short-term beneficiaries was carried out in order to evaluate the degree of social participation and political awareness. Increment in choices and opportunities was taken as the major indicator of empowerment. The study was supported by the Ministry for Foreign Affairs of Finland, Finn Church Aid and Rangpur Dinajpur Rural Service (RDRS) Bangladesh.
The study followed qualitative research methodologies. A non-participant observation, semi-structured focus group interviews and four family case studies were carried out during the study. A non-participant observation was chosen as an important methodology and several RDRS branch offices and weekly microfinance group meetings were observed throughout the study period. Five short-term and five long-term beneficiaries of RDRS microfinance were selected and they were posed different questions on social economic and political domains, and a set of questionnaires was used for this purpose. Four family case studies were also carried out for an in-depth study of economic empowerment and changing gender relations. Data triangulation was used to ensure validity and reliability.
The findings suggest, though the long-term microfinance beneficiaries enjoyed slightly improved chances of social mobility and possessed an added value of self-worth, there was not any significant improvement in securing an enhanced economic base, and at the same time, the longstanding issues of gender disparity and powerlessness remained unchallenged. Thus, the link between minimalist microfinance and women empowerment is not as strong as it is normally perceived.
In addition, the minimalist microfinance seems to have many limitations and, thus, cannot contribute effectively to empowerment of the poor. If the focus of the MFI is on poverty eradication and empowerment, not merely on providing financial services to the poor, the report recommends, instead of a minimalist microfinance, a holistic microfinance with vigorous educational and skill-training opportunities should be devised and implemented. It would certainly be wise to look for new models of microfinance where the poor are not necessarily entrepreneurs, but active stakeholders. Such an example has also been included in the report.
The study followed qualitative research methodologies. A non-participant observation, semi-structured focus group interviews and four family case studies were carried out during the study. A non-participant observation was chosen as an important methodology and several RDRS branch offices and weekly microfinance group meetings were observed throughout the study period. Five short-term and five long-term beneficiaries of RDRS microfinance were selected and they were posed different questions on social economic and political domains, and a set of questionnaires was used for this purpose. Four family case studies were also carried out for an in-depth study of economic empowerment and changing gender relations. Data triangulation was used to ensure validity and reliability.
The findings suggest, though the long-term microfinance beneficiaries enjoyed slightly improved chances of social mobility and possessed an added value of self-worth, there was not any significant improvement in securing an enhanced economic base, and at the same time, the longstanding issues of gender disparity and powerlessness remained unchallenged. Thus, the link between minimalist microfinance and women empowerment is not as strong as it is normally perceived.
In addition, the minimalist microfinance seems to have many limitations and, thus, cannot contribute effectively to empowerment of the poor. If the focus of the MFI is on poverty eradication and empowerment, not merely on providing financial services to the poor, the report recommends, instead of a minimalist microfinance, a holistic microfinance with vigorous educational and skill-training opportunities should be devised and implemented. It would certainly be wise to look for new models of microfinance where the poor are not necessarily entrepreneurs, but active stakeholders. Such an example has also been included in the report.