Money for Nothing, Re-thinking Women's Empowerment and the Accomplishments of Microfinance in Rural Bangladesh

Abstract

Microfinance Institutions often claim that microfinance is useful not only in alleviating poverty but also as a development tool which empowers women. The impacts of microfinance on empowerment have been studied by many, some of whom have reviewed empowerment not only by looking at repayment, but also by examining the women’s well-being. However, other studies suggest that the various dimensions of well-being (such as mobility, political participation and health awareness) are not a direct result of access to credit or income but rather an indirect result of community development programs that are usually run by the microfinance institutions alongside their credit providing facilities. Thus, many studies suggest, while microfinance may be a useful tool to alleviate women out of poverty but empowerment is an issue that needs to be addressed differently. Empowerment, in this view, requires incorporating women’s agency. However, in traditional societies like Bangladesh, the present character of women’s agency is one of the causes of their disempowerment. The existing social structure and the century-long gender disparities distort the view of what women really value. Thus, I argue that empowerment cannot be achieved only via exercising agency, but it needs to question the existing power relations and social structures. On this reasoning empowerment requires critical agency. By examining Bangladeshi women’s identity, social structure and agency this thesis inspects how social structures, existing power relations and agency play out in the context of empowerment. I argue that the microfinance institutions need to challenge the existing social structures and power relations rather than build on them. Moreover, the idea of critical agency needs to be incorporated in their community development programs to play an effective role in women’s empowerment and development. Looking at microfinance institutions in this broader context shows more clearly the limited role they play in the process of women’s empowerment.