The literature review on how microcredit impact women
empowerment will allow to assess and let women survive live a life with
dignity, humanity, respect, self esteem and self reliance. The emphasis will
assess the ability to exercise choice incorporates three interrelated
dimensions and the women will be empowered when they will have full control
over their own life.
According to KreditanstaltfürWiederaufbau (KfW)
microfinance is a significant instrument for poverty reduction, whether it can
also be seen as a tool for women's empowerment is of special interest to
KfW.
In order to answer the question many studies (reports,
journals, microfinance profile) have been carried out in developing countries
and the majority of these studies have been carried on Rwandan women because
this was the country where microfinance schemes first time started by women
umbrella called Pro-Femmes/ Twese Hamwe through its member called Duterimbere
microfinance institution since 1992.
The main objective of this initiative was to provide loans to
poor people without collateral, alleviating poverty and unleashing human
creativity and endeavor of the poor people.
Microfinance has proven its potential to generate results and
in general, studies suggested the poorest seldom benefit from
microfinance, while the middle and upper poor benefit the most. Women
in particular face significant barriers to achieving sustained increases in
income and improving their status, and require complementary support in other
areas, such as training, marketing, literacy, social mobilization, and other
financial services (e.g.,
Consumption loans, savings).
In fact, it is difficult to separate the impact of
microfinance from that of other interventions (Maclsaac, 1997).Further Maclsaac
(1997) said that «most women borrowers have only partial control over
loans, or have relinquished all control to male members of the family. This has
serious implications for the impact of gender equity. However, this is not to
say benefits are non-
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existent. As part of a broader effort to raise awareness and
mobilize women, credit could play an important role as an «entry
point» to strengthen women's networks and mobility, increase their
knowledge and self-confidence, and increase their status in the
family.»
In the context of Rwandan women and men discusses that
«during the last two decades, micro-credit approach has been increasingly
incorporated in the development discourse. Specially the loan is given to the
women and the popular belief is that women are benefited and empowered and are
being acknowledged for having a productive and active role and thus it is the
gateway of gaining freedom for themselves.»
There are few studies in the context of Pakistan which
discussed the relationship between microcredit and microfinance and women
empowerment, one of them was a review based study done by Malik and Luqman
(2005).
Thus I see a broadening of the concept of microfinance the
current challenges is to find efficient and reliable ways of providing a richer
menu of microfinance products.
Microfinance and other services for poor people are important
instruments for poverty reduction and for entrepreneurship development
especially for women according to a report prepared by the United Nations
Secretary General Kofi Annan (Ref. world submit and social development and
microfinance 6-12 March 1995 Copenhagen).
They assert that «from the previous research studies, it
was concluded that micro finance or microcredit programs had the potential and
powerful impact on women's empowerment. Although these were not always
empowering all women, most women did experience some degree of empowerment
because it was a complex process of change experienced by all individuals
somewhat differently and varied from culture to culture.
Microfinance programs had both positive and negative impacts
on women's empowerment and eradication of poverty throughout the world.»
There are different perspectives on the issue of microfinance in connection
with women empowerment. In few cases, women were unable to use the microcredit
to empower themselves. In this regard, Goetz and Gupta (1996) said that
«most programs could not ensure that women retained control over the
money. The Women commonly hand over control of the loan or invest it in a
family enterprise.
