Influences of micro-credit programmes on women empowerment in Bangladesh

D Hossain,Ma Islam,S Majumder

doi:10.3329/jbau.v14i1.30603

Abstract

The focus of this study was to measure the impact of micro-credit programme on women empowerment in Bangladesh. Six leading NGOs/MFIs which operated micro-credit programmes were considered (namely ASA, BRAC, Grameen Bank, SSS, PROSHIKA and TMSS). A total of 406 credit-receivers were randomly selected from twenty-six villages in eight districts of Bangladesh viz., Dhaka, Mymensingh, Sherpur, Netrokona, Kishoregonj, Sylhet, Lalmonirhat, and Narsingdi. The study revealed that 68.5 percent of the respondents could change their empowerment situation. By the estimated change in empowerment it was realised that 15.8 percent of the respondents experienced positive change in their empowerment situation. The main factors affecting the change in women empowerment were membership of different micro-credit organizations, poverty change due to micro-credit and use of loaned money. In single level logistic regression model, the change in poverty situation due to micro-credit had positive association with the perceived change in women empowerment. On the other hand, in multinomial regression analysis the change in poverty situation due to micro-credit had a negative impact on the estimated change in empowerment situation. This contradiction dictates for further investigation into the issue possibly at different component levels of women empowerment. Finally, this research recommended that micro-credit organizations should increase the amount of loan to at least Tk. 15000 encouraging the clients to invest in less risky business with efficient follow up programme.J. Bangladesh Agril. Univ. 14(1): 93-100, June 2016

Highlights

Women empowerment is considered as one of the main tools to ensure the wellbeing of the women in the world
The study aimed at comparing the likely influences of the micro-credit programmes of six leading NGOs/MFIs like Bangladesh Rural Advancement Committee (BRAC), Grameen Bank, Association for Social Advancement (ASA), PROSHIKA, Thengamara Mohila Sabuj Sangha (TMSS) and Society for Social Service (SSS) on women empowerment in Bangladesh
Different types of NGOs or MFIs were significantly associated with the change in empowerment situation

Summary

Introduction

Women empowerment is considered as one of the main tools to ensure the wellbeing of the women in the world. It is more important in developing countries like Bangladesh where the effect of male dominancy is acute. The influences of the credit programmes on women empowerment are likely to be different. In such a situation, the performance of the micro-credit programmes by different organisations in uplifting the women empowerment status should be evaluated systematically. The study aimed at comparing the likely influences of the micro-credit programmes of six leading NGOs/MFIs like BRAC, Grameen Bank, ASA, PROSHIKA, TMSS and SSS on women empowerment in Bangladesh. The specific objectives of the study were to i) identify the women empowerment status among the micro-credit clients; ii) formulate a suitable technique to measure the change in women empowerment status among the clients of different credit organisations, iii) verify if micro-credit programmes had any significant effect on the women empowerment; and iv) identify which of the organisations offering micro-credit had contributed more in women empowerment

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Conclusion