Research Round-Up Women's empowerment and micro-finance programmes: Strategies for increasing impact

Abstract

This study summarizes findings from a pilot project that distributed information and ran workshops in Ethiopia, Ghana, and India, on women's empowerment and microfinance. The project was funded by the British Small Enterprise Development Fund of the Department of International Development. Links between microfinance and women's empowerment are viewed as optimistic, limited by design, cost effective in eliminating poverty, and a misplaced diversion of resources. Microfinance programs range from small scale self-help groups to large poverty-targeted banks. One model may vary in delivery, group functions and structures, and complementary services. This project identified 3 contrasting approaches to microfinance and women's empowerment: the financial sustainability approach, the integrated community development approach, and the feminist empowerment approach. However, program evaluations revealed the need to question the assumptions underlying all 3 approaches. In most programs, women benefited to a limited degree. Many women did not control the loan use. Most women were engaged in low paid, traditionally female activities, and increases in income were small. Resources and time invested in economic activity were limited by responsibility for household consumption and unpaid domestic work. Microfinance programs sometimes created domestic tension between spouses and loss of spousal income and support. Group repayment pressures sometimes created pressures between women. Many women focused on personal rather than social objectives. The author proposes a gender strategy for microfinance and sets priorities for further research.