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Microfinance: Champion in Poverty Alleviation and Failure in Female Empowerment

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  • Dobra, Alexandra

Abstract

In the past few years the provision of financial services to low-income clients via microfinance programs has drastically increased due to its positive effects on development. There are plenty of policy concerns surrounding the triad of microfinance, poverty reduction, and female empowerment. Microfinance programs provide an effective and operational policy tool which is successful in reducing poverty »holistically,« in the sense that women tend to share their income with others more than men. However, the rigidity of microfinance programs does little to enhance female political empowerment. Thus, it is important to go beyond the mainly economics-centred literature and to draw on examples from less developed countries and to propose ways of overcoming the programs’ weaknesses. As a result, a positive correlation between targeting women with microfinance programs has to be found that consistently decreases overall poverty.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32413.

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Date of creation: 01 Jul 2011
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Publication status: Published in Internationale Politik und Gesellschaft 3-2011.3(2011): pp. 134-144
Handle: RePEc:pra:mprapa:32413

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Keywords: Microfinance ; Empowerment ; Limits ; Targeting;

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  1. Sajeda Amin & Ashok S. Rai & Giorgio Topa, 1999. "Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh," CID Working Papers 28, Center for International Development at Harvard University.
  2. Alwang, Jeffrey & Siegel, Paul B. & Jorgensen, Steen L., 2001. "Vulnerability : a view from different disciplines," Social Protection Discussion Papers 23304, The World Bank.
  3. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, François, 2002. "Les nouvelles stratégies internationales de lutte contre la pauvreté," Economics Papers from University Paris Dauphine 123456789/5203, Paris Dauphine University.
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