Microcredit, women and empowerment Essay Example | Topics and Well Written Essays - 3000 words

Microcredit, women and empowerment - Essay Example While other micro credit programs are usually subsidized by the government Grameen bank microcredit programs does not reduce interest rates but instead charges lower administrative costs (Hashemi, Ruler & Riley, 1996). In definition microcredit is an element of micro finance, which is to provide minimal amounts as loans to individuals who are not able to generate income for themselves and are considered as poor by the definition of that particular economy (Rahman, 1999). Microcredit is the provision of small amounted loans i.e. micro loans to poor people of any country. Such loans help those individuals to generate income for themselves and to live a better life. The role that microcredit plays in the empowerment of women is dependent on many different factors. The most important factor is the managerial control imparted by the program towards the women involved (Goetz & Sen Gupta, 1994). The index developed by Goetz & Sen, Gupta, 1994 shows two extremes sides of the index. On one end according to them are women who have no control over the administrative process of acquiring the loan. Moreover they were not part of the activities which were funded by using the loan. On the other side are women who were part of the entire process (Goetz & Sen Gupta, 1994). They should not only be part of the economic activities which result from the loan but should also be involved in marketing of the produce. According to the study carried out by Goetz and Sen Gupta, married women had very little control over the loans taken by them. This loss of control can have very negative implications for women. If the men are willing to take responsibility of the repayment of the loan it creates no problems for the female involved but totally negates the concepts of microcredit (Goetz & Sen Gupta, 1994). Two other situations can also arise. The members may be partially willing but unable to pay back the loan. In this case women are left to sell household items in order to