In the 1980s, bad economic conditions worldwide,
especially in Latin America and Africa have led the IMF and the World Bank to
implement the Structural Adjustment Programs (SAPs). Under the SAPs, many
workers were laid off, salaries reduced and local currencies were devalued. Fonderson (2002) argues that these factors have led to the incremental of women
role in economic activities.The International Financial Institutions (IMF and
the World Bank), national governments and Non-Govermental Organizations have
seen women economic integration as an important mean to alleviate poverty in
many countries. One way these institutions tried to integrate women in the
economy is by providing microcredits (Fonderson, 2002). Microcredits, in this
context, refer to small amount of money given to women to undertake an
economic activity that will reduce poverty.
In Mali, several microcredits initiatives have been undertaken to alleviate poverty rate among women with encouraging results. For example, Nyesigiso, a local malian bank, has started to provide microcredit loans to women in many field, especially in cloth dyeing. Mali has a long history of cloth dyeing. According to Down (2007), malian women have used plants, Kola nuts and mud for dyeing cloths. Nowadays, they use imported dyeing materials and need to borrow money to buy them and improve the quality of their work. Several women have been interviewed and they both agree that these loans have made them improved their buisness and now they are able to take care of their children and their husbands. However, Nyesigiso has imposed disciplinary rules to women to get loans. In order to be eligible for microcredits, women must be part of an organization, attend meetings and training sessions.
In Mali, several microcredits initiatives have been undertaken to alleviate poverty rate among women with encouraging results. For example, Nyesigiso, a local malian bank, has started to provide microcredit loans to women in many field, especially in cloth dyeing. Mali has a long history of cloth dyeing. According to Down (2007), malian women have used plants, Kola nuts and mud for dyeing cloths. Nowadays, they use imported dyeing materials and need to borrow money to buy them and improve the quality of their work. Several women have been interviewed and they both agree that these loans have made them improved their buisness and now they are able to take care of their children and their husbands. However, Nyesigiso has imposed disciplinary rules to women to get loans. In order to be eligible for microcredits, women must be part of an organization, attend meetings and training sessions.
The shea butter microcredits project is
another successful example in Mali. The Islamic Relief Canada, a development
and advocacy organization, has empowered women economically by providing small loans to malian women to boost
they shea butter production. Not only Islamic Relief Canada has provided loans,
but it has trained and monitored women to improve the quantity and the quality of their products. As
a result, women have improved the quantity and quality of their shea butter and
are now able to sell abroad and generate more benefit.
Overall, microcredit loans have been
successful in Mali. It has also demonstrate that malian women can do more with
very little. However, I have some suggestions to make to improve micro credits efficiency.
First, micro credits can be more efficient if interest rates are low because low
interest rates are easier to pay. Second, women should be given the choice to
invest the loans in activities they want because some women are more successful
in self designed projects.
Works cited
Down,M. (2007). Microcredit and Empowerment among Women Cloth Dyers of Bamako, Mali, A Dissertation Presented to the Graduate School of the University of Florida in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy University of Florida, 1-146
Down,M. (2007). Microcredit and Empowerment among Women Cloth Dyers of Bamako, Mali, A Dissertation Presented to the Graduate School of the University of Florida in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy University of Florida, 1-146
Fonderson, J. (2002).The disciplinary power of micro credit:
examples from Kenya and Cameroon. in Rethinking Empowerment: Gender and
Development in a Global/Local World edited by Jane L. Parpart, Shirin M. Rai
and Kathleen Staudt. New York: Routledge 182-198
I agree with you that microcredit enterprises have been a very important force behind many development strategies. And they have certainly helped many women get ahead. I also like your critiques and suggestions - women should be given free will as to what they will decide to do with the money they receive.
ReplyDeleteI do think, however, that organizations that offer microcredit also fall into using a bit of a colonial lens, that is, many of them do not allow men to partake in their services. They state that women are more responsible with the money and are more likely to use it for their children. As we've seen in the readings on men and masculinity for this class, this can be problematic and often are looking at men, particularly in Africa, through the stereotypical lens of the "lazy man" who would simply drink away the money.
While women are certainly in need of special attention as they are typically underrepresented and mistreated in many places around the world, I think we should also begin to allow men to utilize microcredit loans.
Anyone else have any thoughts on this?
Mohamed, I like the example you have chosen to cite in Mali and I agree with your suggestions about giving women the option of taking a microcredit loan to pursue their own opportunities and reducing interest rates. As Erin mentions, it is crucial for men to be included in this context. If the overall goal is human development, men should be able to participate and invest in their own well-being. Creating a playing field in which men and women are able to pursue their interests and desires equally is the main goal.
ReplyDeleteIn Latin America, different organizations and foundations have attempted to create programs to assist woman entrepreneurs. Fundacao Dom Cabral and Goldman Sachs created the program 10.000 Women (https://www.fdc.org.br/10000women/Paginas/default.aspx or http://www.goldmansachs.com/citizenship/10000women/index.html), which trains women to be entrepreneurs according to successful business models. Fundacao Dom Cabral, which is a business school in Brazil and Goldman Sachs, an investment bank collaborated to create this initiative in Brazil. The program is assisting women I creating and managing businesses.
Microfinance (MF) has been employed in international development practice throughout long period of time in various regions of the world including the countries in South Asia – the region I focus on. In fact one of the most praised MF institutions, i.e. Grameen Bank, originates from Bangladesh. MF is quite a complex notion and manifests itself in a number of forms and it is not seen as a perfect solution any more. Moreover, seeing how many loan waivers need to be given it is worth asking a question whether it is better to just give out the money to people (The Economist, 2010).
ReplyDeleteBut this is about MF itself. The more recent trend in MF is to view it not only as poverty reduction solution but also as gender empowerment tool. Along with other measures that aim at gender empowerment MF is seen as means of reaching economic security for women and increasing their capacity for mobility, decision-making, financial independence, etc. There is mixed evidence whether MF achieves it or not (Cheston, Kuhn). What is obvious though, increased economic gains of women do not affect much power structures and hierarchal relations. MF should be one of the many tools that empower women; other should tackle the attitudes to women, as Gabi says, they should involve men, they should aim at traditional gender roles and sources of oppression.
The texts I refere to:
The Economist (2010). Big trouble for microfinance. Retrieved from http://www.economist.com/blogs/freeexchange/2010/12/microfinance
Cheston, S., Kuhn, L. Empowering women through microfinance. Retrieved from
http://www.genfinance.info/documents/Gender%20Impact/ChestonandKuhn_2002.pdf