Microfinance: Myth or Panacea for Women's Empowerment

Abstract

In this research paper, emphasis has been given to understand decision taking ability of women involved in self-help group activities in their socio-economic, political and intra and inter household relations. The study is based on primary survey undertaken across social groups in Malda district in West Bengal. Conventionally, the concept of poverty includes only consumption and income approach. But this understanding only considers absolute rather than relative poverty. It has been claimed to include the concept of dignity and decision taking freedom to measure poverty. The relative aspect of poverty identified poor people as agent who fight against existing socio- economic norms with their limited assets. The relative aspect of poverty identified poor people as agent who fight against existing socio- economic norms with their limited assets. Gender equity is the magical stick to reduce poverty and push the economy towards sustainable development. That is why there both strategic as well as inherent reason to recognize that empowerment is an element to reduce poverty. Microfinance is recognized as a most pivotal instrument to reduce poverty and empower women. It is very difficult to measure women’s empowerment because it depends on many interrelated aspect of human life. Empowerment is a dynamic rather static in nature. Women may differently experience the flavor of freedom or change in their life. Most of the time poor women are facing financial crunch. This financial crisis restricts women to take affirmative role regarding economic decision in their families as well as in the communities. To ease this situation, microfinance may act as a positive contributor. The concept of empowerment cannot be a homogeneous aspect. It depends on many financial and non-financial factors. So only provision of credit alone will not be able to alter power and gender relations. Non- economic factors, such as group bonding, reduced asymmetry of information, social networking, self-esteem, bargaining power, decision making autonomy are playing pivotal role to push women towards the path of empowerment. Group wise movements reduce the chances of asymmetry of information and enhance the confidence among women participants that create positive significant transformation in decision-making arrays.