Role of Microfinance Institutions in Women Empowerment: A Case Study of Akhuwat, Pakistan

Abstract

AbstractGender discrimination is a persistent problem faced by women all over the world, which has ledto the need to empower women for uplifting their status as recognized by Millennium Development (2010). The present study focuses on the role of microfinance in empowering women and also acknowledges its' significance in alleviating poverty. The researcher used qualitative approach and case study method for in depth analysis of the phenomenon in context of Akhuwat, an interest free microfinance organization. It was recognized that microfinance brings about changes in women's lives: household condition, family wellbeing and social status. It is improved by availing the services of microfinance institution and interest free loans further add to their well-being. Present study focused on four background variables to examine their influence on decision making ability of women in aspects of their domestic and social life. Age, education, marital status and family type are important contributing factors that influence women's empowerment. It was also observed that women are more inclined to be altruistic and spend most of their income on their families. The present study can be further extended by incorporating more factors and increasing sample size in order to get more significant results.Key words: Microfinance, Women Empowerment, Poverty, Interest Free LoanIntroductionWe recognize that gender equality, the empowerment of women, women's full enjoyment of all human rights and the eradication of poverty are essential to economic and social development, including the achievement of all the Millennium Development Goals (Draft resolution of General Assembly. Millennium Summit, 2010, p. 3).Keeping in view the status of women in developing countries like Pakistan, the present study has been conducted to examine the influence of microfinance on empowering women in context of an interest free MFP, i.e. Akhuwat. An important milestone for alleviating poverty is through Millennium Development as the first goal attempts to eradicate extreme poverty and hunger which is linked with third goal of gender equality and women empowerment. In male dominated society, women face discrimination intheir family, social, economic and political life and in addition to it the traditional duties of managing households create hindrances in their social and economic empowerment. Hence various efforts have been made by many Government and Non-Government organizations to promote women empowerment especially in rural areas and one such effort is the microfinance intervention (Meenu et al., 2011).The studies conducted by various researchers in this field have confirmed that targeting women is an effective way to combat poverty because women are likely to spend their incomes in food, health care and education of their children. All of these are investments in future and contribute towards long term economic advancements for families, communities and ultimately for countries (Women's Empowerment: Global Perspectives AJWS, 2006).In developing countries like Pakistan, women's empowerment is of great importance where 22.3% of the people are living under poverty line and nearly 40 per cent of women are poor and of whom almost 30 per cent can be considered both economically and socially poor. According to the United Nations Human Development Report 2011, Pakistan ranked 115th among 187 countries on the HDI in gender equality (National Report - June 2012, Pakistan). So these stats provide basis for promoting greater emphasis on gender equality.The study aims at first, confirming a positive link between microfinance and the socio-economic wellbeing of women in context of a microfinance provider i.e. Akhuwat and second, to examine the demographic variables that influence women decision making ability. A qualitative software Nvivo is used for the analysis purpose to show the impact of MF on the life of its beneficiaries. …

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