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Micro-credit Intervention and Its Effects on Empowerment of Rural Women: the Brac Experience

Shahnaj Parveen
Department of Agricultural Extension Education, Bangladesh AgriculturalUniversity, Mymensingh

Md. Sajedur Rahman Chaudhury
M & E Consultant, PromPT (Promoting, Participation and Training)

Abstract/ Executive Summary:

The study was designed to analyse rural women’s economic empowerment as the outcome of micro-credit interventions. The study was conducted in Shahjatpur and Jalalpur villages under Melandaha Upazila of Jamalpur District. A total of 90 respondents were selected randomly, out of which 45 were involved in the credit scheme of the Bangladesh Rural Advancement Committee (BRAC) and other 45 women had no involvement in any credit programme. Both qualitative and quantitative data were collected through group discussions and interviews with the respondents in December 2008. Three economic indicators (income, savings and asset) were considered to measure women’s empowerment. The independent sample t-test was performed to evaluate the impact of micro-credit on women’s economic empowerment. Results showed significant differences between BRAC and non-BRAC women in the levels of economic dimensions of empowerment. Admittedly, the BRAC women were more empowered economically due to their active participation in various income generating activities compared to control groups. This study concluded that there were some positive contributions of micro-credit interventions on rural women’s economic autonomy. Hence, more loans should be expanded to the low-income women by development agencies, especially by the BRAC, in enhancing their economic solvency, domestic power relations and psychological strengths. This could undoubtedly act as catalyst to foster socio-economic uplift of rural women in the study villages and rectify long standing gender inequality in Bangladesh.

Keywords: Rural women, Micro-credit, Impact, Empowerment

Location: Shahjatpur and Jalalpur villages under Melandaha Upazila of Jamalpur District

Start Date: 01-12-2008

End Date: 31-12-2008

Program Area: Socio-economic and Policy

Non-commodity: Credit

Objectives:

1. To measure the financial resources of rural women; 2. To assess the extent of rural women’s economic empowerment and 3. To measure the impact of micro-credit on rural women’s economic empowerment.

Methodology:

The study was conducted in Shahjatpur and Jalalpur villages under Melandaha Upazila of Jamalpur District. A total of 90 respondents were selected through stratified random sampling method, out of which 45 were involved in the credit scheme of the BRAC and other 45 women had no involvement in any credit programme. Both BRAC group and control group had a similar socioeconomic status. Three indicators, such as personal income, savings and assets were considered to measure women’s economic empowerment. In order to collect qualitative data, two group discussion sessions were arranged in two villages. Each group contained 10 participants. The qualitative data helped the researcher to design interview schedule for the study. A personal interview was conducted with the 90 respondents through the interview schedule in December 2008. Simple statistics such as percentage, mean, standard deviation (SD) and coefficient of variation (CV) were calculated. The independent sample t-test was performed to evaluate the impact of micro-credit on rural women’s economic empowerment. The Statistical Package for Social Science (SPSS) was used for data entry in the computer. Measurement of empowerment indicators - Income of the respondents was measured in terms of money (taka) generated annually. Both farm (vegetables, livestock and fisheries) and non-farm income sources were considered in measuring annual income of the respondents. Income of the respondents was categorised into five (e.g. very low income, low income, medium income, high income and very high income) in order to measure empowerment index. Savings of the respondents was measured in terms of money (taka) saved annually. Different forms of savings, such as cash savings at home, savings as crops, savings in NGOs or rural co-operatives and savings in bank were considered in measuring savings of the respondents. Savings of the respondents was categorised into five (e.g. very low savings, low savings, medium savings, high savings and very high savings) in order to measure empowerment index. Asset of the respondents was measured in terms of money (taka) value of the assets at the time of interview. Both productive (cattle, goat and poultry) and nonproductive (jewellery, TV, radio and furniture) assets were taken into consideration in measuring the asset of the respondents. Asset of the respondents was categorised into five (e.g. very low Asset, low Asset, medium Asset, high Asset and very high Asset) in order to measure empowerment index. Cumulative Economic Empowerment Index (CEEI) was measured by summing up of income, savings and asset categories of the respondents. The CEEI score varied from 1 to 15, where 1 indicated very low level of empowerment and 15 indicated very high level of empowerment.

Source of Information: BANGLADESH RESEARCH PUBLICATIONS JOURNAL; ISSN: 1998-2003, Volume: 2, Issue: 3, Page: 641-647, May - June, 2009

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

From the findings and discussion mentioned above, it can be said that most of the rural women had a very low level of education. Their annual income was less than ten thousands. They deposited money mainly in bank. The rural women possessed both productive and non-productive assets, which secure them during household risks. There was a low level of economic empowerment of rural women. However, significant differences were found between BRAC and non-BRAC women in their levels of economic empowerment. This study provides evidence that economic empowerment of women can be improved through increasing their income, savings and assets. The results also suggest the need to empower women through education. In enhancing women’s empowerment in a significant way, the concerned agencies, especially the BRAC, should provide more loans to poor women along with provision of education and training. This could undoubtedly act as catalyst to promote socio-economic uplift of rural women in the study villages and rectify long standing gender inequality in Bangladesh.

Knowledge Management: Journal