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Influences of Micro-credit Programmes on Women Empowerment in Bangladesh

D. Hossain*
Department of Statistics, EXIM Bank Agricultural University Bangladesh, Chapainawabganj-6300

A. K. M. Saiful Islam
Department of Agricultural Statistics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

S. Majumder
Department of Agricultural Statistics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The focus of this study was to measure the impact of micro-credit programme on women empowerment in Bangladesh. Six leading NGOs/MFIs which operated micro-credit programmes were considered (namely ASA, BRAC, Grameen Bank, SSS, PROSHIKA and TMSS). A total of 406 credit-receivers were randomly selected from twenty-six villages in eight districts of Bangladesh viz., Dhaka, Mymensingh, Sherpur, Netrokona, Kishoregonj, Sylhet, Lalmonirhat, and Narsingdi. The study revealed that 68.5 percent of the respondents could change their empowerment situation. By the estimated change in empowerment it was realised that 15.8 percent of the respondents experienced positive change in their empowerment situation. The main factors affecting the change in women empowerment were membership of different micro-credit organizations, poverty change due to micro-credit and use of loaned money. In single level logistic regression model, the change in poverty situation due to micro-credit had positive association with the perceived change in women empowerment. On the other hand, in multinomial regression analysis the change in poverty situation due to micro-credit had a negative impact on the estimated change in empowerment situation. This contradiction dictates for further investigation into the issue possibly at different component levels of women empowerment. Finally, this research recommended that micro-credit organizations should increase the amount of loan to at least Tk. 15000 encouraging the clients to invest in less risky business with efficient follow up programme.

Keywords: Micro-credit, Women empowerment, Client’s perception

Location: Eight districts namely Mymensingh, Sherpur, Netrokona, Kishoreganj, Dhaka, Narshingdi, Sylhet and Lalmonirhat.July 2011 to June 2012

Start Date: 00-07-2011

End Date: 00-06-2012

Program Area: Socio-economic and Policy

Non-commodity: Credit, Employement

Objectives:

The specific objectives of the study were to i) identify the women empowerment status among the micro-credit clients; ii) formulate a suitable technique to measure the change in women empowerment status among the clients of different credit organisations, iii) verify if micro-credit programmes had any significant effect on the women empowerment; and iv) identify which of the organisations offering micro-credit had contributed more in women empowerment.

Methodology:

Members of Bangladesh Rural Advancement Committee (BRAC), Grameen Bank, PROSHIKA, Association for Social Advancement (ASA), Society for Social Service (SSS) and Thengamara Mohila Sabuj Sangha (TMSS) were chosen for the study. For conducting the study we worked at eight districts namely Mymensingh, Sherpur, Netrokona, Kishoreganj, Dhaka, Narshingdi, Sylhet and Lalmonirhat. In these eight districts, twenty-seven villages were selected purposively. A total of 406 micro-credit clients were chosen randomly for the study. The survey was conducted during July 2011 to June 2012. The impact of micro-credit on women empowerment was measured in two ways namely, perceived change and estimated change. Perceived change in empowerment was realized by asking the respondent if there had been any change in their empowerment status due to micro-credit. On the other hand, estimated change in women empowerment was derived by employing scientific measurement tool which is discussed below.

Measures of index of women empowerment- Mobility The respondent was presented with a list of three places (the market, a medical facility, and someplace outside the villages) and asked if she had ever gone there. She was given one point for each place she had visited with her husband and an additional point if she had ever gone there alone and she was given 0.5 point for each place she had visited with other person. She had been given no point if she did never go outside (hypothetical range: 0 to 2). Ability to make decision about small purchases Two points were given if the respondent was able to take decision about the purchase of small items used in daily preparation of food for the family (such as kerosene oil, cooking oil, or spices, etc.), one point was given for taking decision about purchasing the items by the respondent with her husband. In the same way 0.5 point was given for making decision about purchasing daily necessary items by the respondent and anyone else (father-in-law, mother-in-law etc. other than her husband). She had been given no point if she had no decision making power on small purchases in her family (hypothetical range 0 to 2). Ability to make decision about large purchases Similarly, respondents were asked whether they purchased the following items: pot and pans, children's clothing, saris for themselves etc. Two points were given if the decision had been taken by the respondent herself about large purchases, one point was given for the decision taken by the respondent and her husband jointly and 0.5 point was given if the decision had been taken by the respondent and anyone else jointly. She had been awarded no point if she had no decision making power on large purchases in her family (hypothetical range 0 to 2). Taking decision about respondent's own medical treatment
Two points were given for taking decision about respondent's own medical treatment by herself and one point was given if the decision had been taken by the respondent and her husband jointly. 0.5 point was given if the decision had been taken by the respondent and another person (other than her husband) jointly. No point was awarded if the decisions about the medical treatments of the respondent had been taken by the other persons rather than the respondent herself (hypothetical range 0 to 2). Ability to take decision about respondent's own income Respondents were asked whether they could take decision about the expenditure of their own income or not. Two points were given for the decision which had been taken by herself. Similarly, one point was given for the decision taken by the respondent with her husband jointly, 0.5 point was given if the decision had been taken by the respondent and another person (other than her husband) jointly and no point was given if the decision had been taken by anyone else other than the respondent (hypothetical range 0 to 2). Index of women empowerment Scores in the above five components were summed up to find the total score of empowerment of a respondent. Similar scores were derived before and after the client had been involved in micro-credit. The difference between the two periods could give the change in women empowerment due to micro-credit, which might be termed as ‘Index of women Empowerment’. The index was coded into three categories. They were ‘negative change’, ‘no change’ and ‘positive change’ category. If the index got a negative value, it indicated that there was ‘negative change’ in women empowerment. A zero value in the index was defined as ‘no change’ which indicated that there was no change in empowerment situation among the respondents. If the index got a positive value, it indicated a ‘positive change’ in empowerment situation of the respondent due to micro-credit. Bi-variate analysis The relationship between different variables were examined using bi-variate tables and the strength of the associations were ascertained by using chi-square test. Binary logistic regression model Let Y be a dichotomous dependent variable, say change in women empowerment taking values 0 and 1 and suppose that Y=1, if there is a positive change and Y=0, otherwise. Also let X be an independent variable.

Source of Information: J. Bangladesh Agril. Univ. 14(1): 93–100, 2016 ISSN 1810-3030

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Achievement/Findings:

This study attempted to evaluate the performances of different NGOs/MFIs on women empowerment situation. The research findings suggested that achievement in women empowerment was different among different NGOs/MFIs. In the case of perceived change in women empowerment, TMSS exhibits the best performance. In the current study it was identified that the respondents who took loan above Tk.15000 were found to be more empowered than the others. It is comprehendible that only higher amount of loan may not necessarily ensure appreciable change in women empowerment. There are other factors that work simultaneously. Women empowerment has different components in it which vary in different directions among different socio-economic groups. One important findings of the research is that performance of microcredit depends on the sectoral use of loan money. It is evident that if the loan money is used in sectors where relatively less risk is involved (e.g., buying land, van, rickshaw, CNG, auto-rickshaw, sewing machine, furniture, family member’s health care, education of children, etc.) positive gain may be achieved in women empowerment compared to other sectors (e.g., business, agriculture). Micro-credit programmes may revise their focuses in that respect. Another insightful observation is that unless respondents reach the safest level of poverty alleviation they are unstable in achieving sustainable level of women empowerment. Hence, micro-credit programmes should have a provision to keep track of the old members in terms of extended loan or counselling support to help them sustain their achievements in women empowerment. Now-a-days gender is a core component of most of the NGOs/MFIs. Hence, a suitable monitoring and evaluation strategy would accelerate the process of achieving women empowerment to its fullest extent.

Knowledge Management: Journal