Paradoxes abound in the English language; from comical ones like “jumbo shrimp” to more profound ones like “deafening silence”. But paradoxes are more than literary terms, they also exist in real situations as well. For example, one method of reducing world poverty seems to be an inherent paradox. When a country is impoverished it seems counterintuitive that one of the most desirable ways to alleviate large-scale poverty is by loaning money to the people. Despite this, microloans have improved countless economies in impoverished areas; most notably, in Africa and Southeastern Asia. Certain countries have received more attention than others and their situations have been used as models for further expansion of the micro-financial …show more content…
For example, some women use their microloans to create a family business based on local crafts. It is said that that “for every 100 taka lent to a woman, household consumption increases by 18 taka; interestingly the figure is 11 taka if the same amount was lent to a man”(Amin, Rai, and Topa). Although critics argue that loaning to women is not a shortcut to gender-equality, it is undeniably a step in the right direction. Some studies say that only 45% of loans given to women stay solely in women`s hands; yet, studies indicate that the very act of receiving a loan allows a woman to have more say in the household which, in turn, leads to the furthering of education and sanitation (mircoCredit). This supports the idea that loaning to women is not merely an investment in an individual, but an investment in a family. For example, Runi Mamun, of rural Nowapara, Bangladesh, uses her microloans to help the family. With only $1,000 worth of loans, she has started a jamdani (decorative sari) weaving business, which employees her family members, and bought a cow. On a more personal note, her newfound economic independence has earned her respect in her community. She plans not to marry unless her suitor is as financially stable as she (Burns). This ideology is a drastic departure from the male-dominated ideologies that pervade these rural, impoverished areas. In addition, the Grameen Kaylan
Gilman encourages and empowers women to change their cultural identities by achieving financial independence. Gilman presents multiple reasons for her stance including “countless wives … pitiful ... asking for money to the beggary of their position.” She attempts to reach domestic wives who have grown tired of asking their husbands for money and may be considering making
This book shows how as women took on the gender male roles they still managed to food ration and shortages. Women found creative yet effective ways to clothe, feed, and care for their families in the absence of the men.
Women in developing countries take out loans to start businesses and make money. Women struggling to make money take out these loans start a business to make money and pay off the debt from taking the loan. They are able to further support their family along with themselves as the debt is paid off and the business makes more money. Individuals living in poverty filled communities rely on informal employment to make money. Micro-credits have been directed more towards women because they invest money in goods and services. They do not need to depend on their husband for money when they have their own business to make money. When women take out loans to start their businesses they get stronger and get independence from their husband. When women invest in good and give services they help their family and themselves in an effective way. This could benefit women in poverty towards coming out of poverty.
Gender inequality is displayed in many countries around the globe. In India, the society begins gendering as soon as a child is born. In most cases, the birth of a daughter is unwelcome but that of a son is celebrated. The boys are brought up bold and outgoing while the girls are expected to be at home and do chores. While the other discriminations like economic or social discriminations are present outside the home, but gender discrimination is present outside and inside households. In a familial setup, the father is the head of the family and decision maker. The mother generally performs the ‘home making’. Even if the woman is employed, she is expected to do the domestic chores, in addition to her job. Even though she earns, she does not have the freedom to plan her salary or decide anything.
In both developing and emerging economies, microfinance has vastly and increasingly been seen as one of the most important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it.
269). There is no easy way for those with little money to begin earning interest on savings or obtain loans with reasonable interest rates: the banking community is failing the poorest people (Banerjee & Duflo, 2012, p. 269). Also, Banerjee and Duflo (2012) assert that medical and agricultural insurance are not favored by the poor in spite of the fact that they could benefit greatly from such products (269). Their proposed solutions come in the form of microcredit (to provide access to more reasonable loans), electronic money transfer systems (to reduce the fixed costs of saving), and rewarding people for making good financial decisions (either via markets or the government if needed) (Banerjee & Duflo, 2012, p. 270). The incentives could even be something unrelated, such as bed nets, which then help the recipients in more than one way (Banerjee & Duflo, 2012, p. 270). This would need to be coupled with government regulation so that unscrupulous individuals wouldn’t have a way to easily game the system (Banerjee & Duflo, 2012, p. 270).
The book, Microfinance and its Discontent: Women in Debt in Bangladesh written by Lamia Karim, gives us account on what causes a culture to be known as “economy of shame” status, such as in the case of Bangladesh. She writes on a subject that is a top list priority in the economical world these days, the corrupt ways NGO’s lenders do business not only in Bangladesh but across the world, however, she centralizes her views on Bangladesh and only a handful of NGO’s. Even though this was primarily a look at Bangladesh, it has resulted in capturing the attention of people across the globe not only with the NGO’s mention in the book but resulting in a closer look at all NGO’s and how they serve the people. Karim shares with the readers how the 1980’s nongovernmental organizations (NGOs) led in the way of microfinance institutions and claimed that they were providing women with an empowerment tool by issuing them loans. We find that over 80% of borrows are women and most are economically challenged already. With that being stated Karim also takes a look at how and why that is, she discusses the long term effects it is having on women and how it is furthering the exploitation of women in Bangladesh. She looked at how this type of exploitation has not only weakened further women’s economy in Bangladesh but has also strengthen the power NGO’s have over the people (mainly women) at the same time. It takes a look at this type of expansion and brands NGO’s use as a “shadow state
Many families in developing nations do not have sustainability in their lives. In her article, “Microfinance Empowering Female Entrepreneurs”, Elizabeth Matsangou writes, “starting and growing a business is virtually impossible without access to financial services.” Basically, Matsangou is saying that in order to start a business, you need help with the use of micro-loans. Further proving the point that micro-loans that empower women and women need these loans. Many women in developing countries start micro-enterprises to help raise money for their family. With this in mind, it is obvious to see what kind of positive impact micro-loans can have on women. Starting businesses are nearly impossible without the use of micro-loans, proving that they can help empower
For Victoria’s case, she needs the money to buy more potatoes and quinoa to make sure her shop has all the proper vegetables (Kiva.org). If Victoria can keep her shop well stocked, she may attract more customers and make more money. By earning more money, Victoria can improve her quality of life. According to Plan Canada “microfinancing can lead to improved access to clean water and better sanitation while also providing better access to health care” (plancanada.ca). Research shows that microfinance loans are better suited for women because they are less likely to miss payments on their loan and it helps them feel empowered (plancanada.ca). By lending to Victoria, she will feel empowered and will be able to support herself and her family. Also, because she is a woman, she is less likely to miss
The concept of microfinance is not something new. In fact, the history of the microfinance goes back as early as the 15th century. It was in Europe where the concept of pawn shops – an institution by the Catholic Church against the people who were charging exorbitant
According to the World Bank, women make up 70% of the world’s poor and their wages world wide are on average 50% to 80% of men’s. One third of all households word wide are headed by women, they are responsible for half the world’s food production, and yet they own just one per cent of the world’s property. The majority of workers in sweatshops are women and the majority of unpaid labour is done by women in every region of the world. Further, women make up two-thirds of the one billion people who are illiterate and 60% of the 100 million who have no access to primary education.
Microfinancing produces many benefits for poverty stricken, or low- income households. One of the benefits is that it is very accessible. Banks today simply won’t extend loans to those with little to no assets, and generally don’t engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs. Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment,
Some countries have social stigmas that look down upon outsiders or women doing anything other than housework and raising a family, but putting more people to work not only provides more food put it also provides more money for their families. “The women have made progress in fighting hunger and poverty within an area characterized with high levels of food scarcity de to its semi-arid feature, attracting low levels of rainfall,” (“Feature: Kenya’s women fight hunger, poverty with bee products”). Members of villages have found that allowing their women to work outside of the home is helping especially in areas that have droughts and there crops die. A vice chair member in kenya has said “It is a good thing to see women do something to escape
Background: For years since the rise of microfinance in the contemporary discourse of development, Chotacredit, a nationwide Microfinance institution, has been playing a leading role in the XXX region in providing accessible finance to low-income households as a catalyst for employment creation, poverty reduction, and gender equality. However, in recent practice, Chotacredit has found that the current loan-signing rule which requires co-signature by spouse may potentially limit female participation in the microloan program and program impact. A few valid assumptions have been made: 1. As currently, a loan contract must be co-signed by both husband and wife, and a significant share of the husbands of our female clients are truck drivers, the
The programme has been lengthened and modified, enduring several political transitions. A growing number of developing countries have introduced (CCT) programs – poverty alleviation programs that provide funds to adult women in households in exchange for a certain actions such as children’s school attendance, school performance, and preventive health care visits (Rawlings and Rubio 2003: Maluccio and Flores). This was giving women finical power, which weren’t always in the favorable with the husbands, which led to violence and households having issues. Women might become creditworthy and hence more susceptible to getting into debt, and subsidy growths their dependence rather than promoting a livelihood. The PROGRESA CCT programme incorporates stated principles of: gender equality, the importance of improving daughters and mothers' educational levels, and of women's personal development, leadership and citizenship. Only two programme evaluations have pursued to understand gender impacts on all household members, rather than focusing specifically on the