Modern Australian
Men's Weekly

.

Why microfinance as aid isn't enough to empower women

  • Written by Sara Niner, Lecturer and Researcher, School of Social Sciences, Monash University
Why microfinance as aid isn't enough to empower women

Giving small loans to people for small household purchases or to invest in businesses has been an integral part of Australian, American and other aid programs for decades. This is called “microfinance”, and the aim is not only to alleviate poverty, but to empower women.

But simply improving a woman’s economic situation does not necessarily result in greater equality. Increasing women’s economic engagement often increases their work burden on top of all the unpaid labour they do. It can also challenge established gender roles and power hierarchies, causing conflict in the home and even domestic violence.

Empowering women needs to be about more than economics and requires changing the power dynamics and other cultural factors that repress women. So that they can make decisions about their life and mobility, control their money and have access to information, transport, tools and land.

Several studies have shown a link between women’s increased access to credit and increased domestic violence. Development agencies have been forced to develop “do no harm” procedures to try to prevent this.

Santi Rozario from Cardiff University found that after 25 years of microfinance programs in Bangladesh, “ingrained gender values are still essentially unchanged”.

And on top of all this, some microfinance programs only have a minimal impact on development outcomes like health and education.

Not tackling the problem

Microfinance programs do nothing to challenge or transform the structural conditions that create poverty in the first place. It is like putting a band-aid over a deep wound.

Indeed, microfinance shifts responsibility for poverty alleviation onto the poor and marginalised. This is particularly concerning in places such as Cambodia and Myanmar, where vulnerable post-conflict populations can become easily trapped in debt cycles, using one loan to repay another.

Read more: Challenge 11: How improving women's status helps us all

Empowerment requires addressing women’s lack of control over their own lives. Professor Naila Kabeer defines empowerment, as “the ability to exercise choice” where previously people could not.

This kind of empowerment requires structural change within both families and societies. This includes greater access to and control of resources, as well as new norms for women both individually and within families and society.

If development programs don’t challenge the structural causes of gender inequality, at best, microfinance will just continue to reinforce poverty and inequality.

A more considered approach

We shouldn’t write off microfinance entirely. It can work if returned to its grassroots, and run for the benefit of participants rather than to create profit.

There has been a trend toward profit-making microfinance institutions that charge higher interest rates, extracting the little surplus poor people are able to raise from their meagre livelihoods.

Microfinance must be culturally sensitive and driven by the community. If nothing else, we know that there is no such thing as a one-size-fits-all model, and results in one region don’t necessarily transfer across regions or cultures.

Read more: A healthy world starts with a healthy mother

There are some microfinance variations that appear to work better than others, such as Oxfam’s Saving for Change. This program operates in rural villages throughout 13 countries, with 680,000 members.

This model focuses on supporting small groups of women who save money together and then extend credit amongst themselves and then their communities.

But these alternatives to mainstream microfinance models require further investigation and support as to the impact on women’s empowerment. In the meantime the development sector needs to be more self-critical about the impact of their programs.

Authors: Sara Niner, Lecturer and Researcher, School of Social Sciences, Monash University

Read more http://theconversation.com/why-microfinance-as-aid-isnt-enough-to-empower-women-96632

Powering Shepparton’s Businesses: Expert Commercial Electrical Services You Can Count On

When it comes to running a successful business, having reliable, compliant, and efficient electrical systems is non-negotiable. From small retail ou...

Maximise Efficiency: Cleaner Solar Panels for Optimal Performance

Solar panels are a smart investment in energy efficiency, sustainability, and long-term savings—especially here in Cairns, where the tropical sun ...

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australia...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...