Microcredit, Personal Empowerment and Quality of Life of Women Borrowers

A Theoretical Framework

  • Sana Fayyaz PhD Research Scholar, Universiti Utara Malaysia
  • Roslan Abdul Hakim Professor, OYA Graduate School of Business, Universiti Utara Malaysia
  • Shazida Jan Mohd Khan Senior Lecturer, Universiti Utara Malaysia
Keywords: Microcredit, Personal Empowerment, Quality of life

Abstract

The issue of marginalisation of women in development, particularly in South Asia, has been highlighted in the development literature. Women in this region are found to be generally poor, lack of education, and have a low quality of life, due to various economic and cultural reasons. Thus, unlocking the potentials of these women appears to be a plausible move as this could improve not only their income, but also their quality of life. One such initiative to unlock the potential of these women is microcredit program, where small loan is given to these women to enable them to embark on economic activities, which consequently improve their household income and quality of life. Indeed, there have been many studies that examine the relationship between microcredit and quality of life, and found that there is a positive relationship between microcredit and quality of life of the borrowers (women). However, most of these studies implicitly assume that the impact of microcredit on quality of life is direct, and hence, did not consider the role of other factors in evaluating the impact of microcredit on quality of life. Here, we argue that, the impact of microcredit on quality of life is not direct, but rather indirect. We believe personal empowerment does play an important role in influencing the impact of microcredit on quality of life. The mere availability of microcredit, in our view, did not guarantee a positive impact on quality of life. Rather, the availability of credit to borrowers affects their personal confidence, which consequently affects their level of quality of life. This paper discusses the theoretical framework by which these variables - microcredit, personal empowerment and quality of life - are inter-related.

Downloads

Download data is not yet available.

Article Analytics Summary

References

Al Mamun, A., Adaikalam, J., & Abdul Wahab, S. (2012). Investigating the Effect of AmanahIkhtiar Malaysia's Microcredit Program on Their Clients Quality of Life in Rural Malaysia. International Journal of Economics and Finance, 4(1), 192-203. DOI: https://doi.org/10.5539/ijef.v4n1p192

Ali, S. I., Ali, A., &Subhan, F. (2015). EMPIRICAL ASSESSMENT OF THE IMPACT OF MICROFINANCE ON QUALITY OF LIFE. PAKISTAN BUSINESS REVIEW, 719.

Azizi, S. L. (1999). An Analysis of the Social Action program and Education of Women in Pakistan.

Bandyopadhyay, S. (2008). Microfinance in the Improvement of Living Standard and GNH. In Towards Global Transformation: Proceedings of the Third International Conference on Gross National Happiness (pp. 248-271).

Becchetti, L. (2010). The effects of a calamity on income and wellbeing of poor microfinance borrowers: the case of the 2004 Tsunami shock. The Journal of Development Studies, 46(2), 211-233. DOI: https://doi.org/10.1080/00220380903002947

Blumberg (2005).Women's economic empowerment as the magic potion of development.Jefferson Public Citizens.

Cheston, S. & Kuhn, L. (2002). Empowering women through microfinance. A case study of Sinapi Aba Trust, Ghana. USA: Opportunity International.

Cheston, S., & Kuhn, L. (2002). Empowering women through microfinance.Draft, Opportunity International.

Easterlin, R. A. (1973). Does money buy happiness?. The Public Interest, (30), 3.

Goetz, A. M., & Gupta, R. S. (1996). Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh. World development, 24(1), 45-63. DOI: https://doi.org/10.1016/0305-750X(95)00124-U

Haq, A., & Khalid, Z. (2011). Social Performance Report 2009: A look at the Social Performance of Pakistans Microfinance Sector. Pakistan Microfinance Network. Retrieved from http://www.microfinanceconnect.info/articles/Social %20Performance%20Report%202009.pdf

Hari & Srinivas, “ microfinance- Credit Lending Models”. GDRC reaserch output E-059. Kobe, japan : Global Development Research center. Retrieved from http;//www.gdrc.org/icm/model/model-fulldoc.html on Tuesday, 1 march 2016.

Imran Sharif Chaudhry, FarhanaNosheen, Muhammad Idrees Lodhi (2012 ) Women Empowerment in Pakistan with Special Reference to Islamic Viewpoint: An Empirical Study, Pakistan Journal of Social Sciences (PJSS)Vol. 32, No. 1, pp.171-183.

Jafree, S. R., & Ahmad, K. (2013). Women Microfinance Users and Their Association with Improvement in Quality of Life: Evidence from Pakistan. Asian Women, 29(4), 73-105.

Kabeer, N. (1998) ‘Money Can’t Buy Me Love’? Re-evaluating Gender, Credit and Empowerment in Rural Bangladesh. IDS Discussion Paper No. 363, Brighton: University of Sussex.

Kenny, Charles (1999). Does Growth Cause Happiness, or Does Happiness Cause Growth? Kyklos 52(1): 3-26. DOI: https://doi.org/10.1111/1467-6435.00072

Kenny, Charles (2005) Reforming the Posts: Abandoning the Monopoly-Supported Postal Universal Service Obligation in Developing Countries, World Bank Policy Research Working Paper 3627 (Reprinted as AEI-Brookings Joint Center on Regulation Working Paper 05-17, Presented at the Rutgers Postal Economics Conference, Antwerp June 1-4, 2005). DOI: https://doi.org/10.1596/1813-9450-3627

Lord, J. & Hutchison, P. (1993). The process of empowerment: Implications for theory and practice. Canadian Journal of Community Mental Health, 12:1. 5-22. DOI: https://doi.org/10.7870/cjcmh-1993-0001

Maslow Abraham H, 1943, “Theory of human Motivation”, Psychological Review 50, The American Psychological Association, pp 370-396. DOI: https://doi.org/10.1037/h0054346

Mayoux, L. (2000). Micro-finance and the Empowerment of Women: A Review of the Key Issues. Geneva: ILO.

Mayoux, L. (2005). "Women's Empowerment through Sustainable Micro-finance: Organisational training Taraqee Foundation draft report." from http://www.genfinance.info.

Mehmood, N. (2002). Women’s Role in Domestic Decision-Making in Pakistan and its Implications for Reproduction, Pakistan Participatory Poverty Assessment, Balochistan Province Report 2002.

MkNelly, M. M. (2001). Credit with Education Impact on Women’s Empowerment. Freedom from Hunger, Review No. 1:1-22.

Moyle, T. L., Dollard, M., & Biswas, S. N. (2006). Personal and Economic Empowerment in Rural Indian Women A Self-help Group Approach. International Journal of Rural Management, 2(2), 245-266. DOI: https://doi.org/10.1177/097300520600200207

Mumtaz, Z., and Salway, S. (2005). ‘I never go anywhere’: Extricating the links between women’s mobility and uptake of reproductive health services in Pakistan. Social Science and Medicine, 60 (8 ) 1751–1765, DOI: https://doi.org/10.1016/j.socscimed.2004.08.019

Nabahat, S. (2014). Impact of Micro Finance on Women Empowerment: A Case Study of Selected districts of Khyber Pakhtoonkhwa (Doctoral dissertation, University of Peshawar, Peshawar).

Noreen, S. (2011). Role of microfinance in empowerment of female population of Bahawalpur district. In International Conference on Economics and Finance Research (Vol. 4, No. 20, pp. 65-71).

Pakistan Human Rights Commission Report, 2012; retrieved on 3rd march 2016, Retrieved from www.state.gov/documents.

Parveen, S. (2007). Gender awareness of rural women in Bangladesh.

Rehman, W. (2007). Micro finance barriers to the microfinance out reach for women in Pakistan PP.7, 9, 22, 15, Department of Economics Uppsala.

Ruževičius, J., &Akranavičiūtė, D. (2007). Quality of Life and its Components Measurement. Inžinerinėekonomika= Engineering economics, 43-48.

Sharma, P.P.(2014). “Microfinance: The Catalyst of GNH Index.” Parikalpana: KIIT Journal of Management, 10(2), 73.

Social Performance of Pakistans Microfinance Sector. Pakistan Microfinance Network.Retrieved from http://www.microfinanceconnect.info/articles/Social %20Performance%20Report%202009.pdf

Sohail, M. (2014). Women Empowerment And Economic Development-An Exploratory Study In Pakistan. Journal of Business Studies Quarterly, 5(4), 210.

United Nations. (2013). The Millennium Development Goals Report 2013. United Nations: New York. DOI: https://doi.org/10.18356/2e9902b5-en

Veenhoven, R. (2009). World Database of Happiness Tool for Dealing with the'Data-Deluge'. Psihologijsketeme, 18(2), 221-246.

World Bank. (May 2013). Microfinance and Financial Inclusion. http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20433592~men uPK:34480~pagePK:64257043~piPK:437376~theSitePK:4607,00.htm

Yasmeen, K., & Karim, M. Z. A. (2014). Impact of interaction term between education and loan size on women’s decision making. Journal of Entrepreneurship and Business Innovation, 1(1), 123-141.

Yasmeen, K., & Karim, M. Z. A. (2014). Impact of interaction term between education and loan size on women’s decision making. Journal of Entrepreneurship and Business Innovation, 1(1), 123-141. DOI: https://doi.org/10.5296/jebi.v1i1.6658

Zaman, H., (2009), Assessing the poverty and vulnerability impact of micro-credit in Bangladesh: A Case study of BRAC, Washington, D.C., The World Bank, pp. 345 – 56.

Published
2015-12-31
How to Cite
Fayyaz, S., Abdul Hakim, R., & Jan Mohd Khan, S. (2015). Microcredit, Personal Empowerment and Quality of Life of Women Borrowers. Journal of Business and Social Review in Emerging Economies, 1(2), 87-96. https://doi.org/10.26710/jbsee.v1i2.11