Impact of micro finance on women Essay

Microfinance is not a new concept in these sidereal days it is recognized as a most powerful and useful tool to reduce the p e verywherety. dominance of women is one of actually important exsert in developing countries. It is not only seen as a culture objective in itself however as a means of promoting growth, minify poverty and promoting correct governance (World Bank, 2001).Microfinance plays role in improving women closing making by contributing in sparing activities. In this hit the books we depart evaluate the impact of microfinance on indicators of womens endowment in the urban slums of the Lahore district of Pakistan. In this study genders equity, self-confidence, and emplacement leave alone specifically design and implement to explore the link in the midst of microfinance and womens empowerment. This study will justify that microfinance rear end correct the mental attitude of women through i. Access to independent incomeii. Control over savings and refer ence useiii. Ability to bring productive asset to household deliveranceiv. To maintain gender equityIn this study an attempt will made to explore the socio economic determinants of women empowerment in which microfinance will substitution economic determinant. This study will collect the data through aspect that is a quantitative research strategy that involves the structured collection of data from a pre-determined sample. Questionnaires could be filling through Self-administrated, Online or Postal. We will curb Correlation statistics to determine the mutual relationship between gender equality, self-confidence, spatial relation and womens empowerment.Then we will apply Regression analysis to sum the relationship gender equality, self-confidence, status and womens empowerment. This study will adjoin to the women in the Lahore city. The fewer resources and sources are the big problem. Limited time limit is also the limitation of this study. Estimatedtime for completing this research is approximately 5 to 6 months and the expenditures are approximately Rs. 10,000/- (PKR). Key Words Microfinance, Women empowerment, Genders equity, Self-confidence IntroductionThe first project of microfinance in Pakistan was initiated in mid-sixties when Dr. Akhtar Hameed khan implemented the idea of microcredit and launched the Comilla Project as an experiment of microcredit. aft(prenominal) that, various initiatives were taken in the field of microfinance in the fol down in the mouthing decades including orangish Pilot Project in Karachi, Agha Khan hoidenish Support class (AKRSP) etc. Working women contribute to national income of the country and maintain a sustainable livelihood of the families and communities, through verboten the world.As they face many socio- pagan attitude, legal barriers, lack of education and personal difficulties. Traditionally, women deal been marginalized. They are seldom financially independent and often they are more benefactorless m embers of society. some 70% of worlds curt are women. Yet they have no access to credit and other financial services.Therefore, microfinance often site women. Microfinance is a critical tool to empower women from poor household. So, particularly women can get benefit from microfinance institutions as many microfinance institutions target only women, to empower them. In the context of Pakistan, where social and economic empowerment of women is still very low, it is important to identify interventions through which this empowerment shortage could be reversed. In the Global Gender Gap Report, published by the World sparing Forum in 2007, Pakistan is ranked at 126 amongst a total of 128 countries.Women EmpowermentEmpowerment of women means to let women survive and let them live a life with dignity, humanity, respect, self esteem and self reliance. Empowerment is also tie in to the process of internal change (Mayoux 1998) and to the capacity and correctly to make decisions (Kabeer 2001). It consists of change, weft and power. Kabeer (1999) stresses that womens empowerment is the process to acquire the magnate from which those who have been denied the ability to make the strategic life survivals.Her emphasis that ability to execute choice incorporates three interrelated dimensions Resources, Agency and Achievements. According to UNIFEM, to generate choices, gainingthe ability and exercise negociate power, developing a sense of self worth, to see to it desired changes, belief in ones ability and the right to control ones life are important elements of women empowerment. Women will be empowered when they will have full control over their own life.MicrofinanceMicrofinance is a powerful tool to self empower the poor people especially women at world take and especially in developing countries. Microfinance activities can give them a means to climb out of poverty. From early 1970s women movement in number of countries increasing to improve poverty through mic rofinance programs.The problem of women less access to credit was presumptuousness a particular concentration at First International Women assemblage in Mexico in 1975. The evolution of microfinance is from Bangladesh since late 1970s and a very successful project. But in Pakistan, the movement of microfinance sector started from Agha Khan Rural Support Program (AKRSP) and Orangi Piolt Project (OPP). With the passage of time microfinance becomes NGO occupation and five microfinance banks have been started under State Bank of Pakistan (SBP) ordinance.Role of Microfinance in Women EmpowermentThe logic of microfinances potential for empowerment is similar to the economic model of empowerment microfinance makes women economically independent by putting capital and financial resources in their hands. Economic independence results in higher bargaining power for women in their households and communities, and subsequently results in higher prestige and self-esteem.The direction on women s empowerment in the context of microfinance brings to light the meaning of gender relations in policy development circles more prominently than ever before. Women are vaunted as a weapon against poverty (DFID 2006, 1). Microfinance is a type of banking service which provides access to financial and non financial services to low income or unemployed people. Microfinance services lead to women empowerment by positively influencing womens decision making power at household level and their overall socioeconomic status.By the end of 2000, microfinance services had reached over 79 million of the poorest of the world. As such microfinance has the potential to make a earthshaking plowshare to genderequality and promote sustainable livelihood and better working condition for women. (ILO Geneva) It has been well documented that an increase in women resources or better approach for credit facilities results in increased well cosmos of the family especially children. (Maoux, 1997 Kabeer, 2 001).Chaudary and Nosheen (2009) women empowerment is one of important issue of present day development policies in developing countries. Since empowerment is multidimensional concept, it is determined by many socio economic factors and cultural norms. Cheston and Kuhn (2002) stated that microfinance programs have been potential to alter poor relation and to empower women especially by using baptistry study of Sinapi Aba Trust. Although women access to financial resources has substantially increased yet loans effrontery to women differ in sizes.In spite of this, just financial help not enough to empower women and improve well being but if they are properly designed then they make important contribution to women empowerment.