SUSTAINABLE MICRO-FINANCE for WOMEN’S EMPOWERMENT

1. SUSTAINABLE MICRO-FINANCE for WOMEN’S EMPOWERMENT APPROACHESAND CHALLENGES

2. ORGANIZATIONALMANDATES international rights agreements MORAL WHY GENDER? women’s demands and voice traditional rights inequality in basic needs cost-effective implementation WOMEN ARE NOT A MINORITY BUT A MARGINALISED MAJORITY povertyreduction: economic growth INSTRUMENTALIST

3. Increasing evidence of high female repayment rates and the rising influence of gender lobbies within donor agencies. MICRO-FINANCE AND EMPOWERMENT:AN OLD ROAD Mushrooming of donor, government and NGO-sponsored credit programmes in the wake of the 1985 Nairobi women’s conference. 1990s female targeting for financial sustainability Self- Employed Women’s Association (SEWA). with origins in the traditions of unionisation identified credit as a major constraint in their work with informal sector women workers. 1980s poverty-targeted credit Large minimalist poverty-targeted micro-finance institutions like Grameen Bank, FINCA and ACCION 1975 first International Women’s Conference in Mexico Women’s access to credit was given particular leading to the setting up of the Women’s World Banking network Attempts by women’s movements to gain access for women to poverty-targeted credit programmes and cooperatives Early 1970s

4. MICRO-FINANCE AND WOMEN’S EMPOWERMENT Poverty Alleviation Paradigm Feminist Empowerment Paradigm Financial SustainabilityParadigm MULTILANE HIGHWAY OR INCOMPATIBLE PARADIGMS?

5. Definition of empowerment transformation of power relations throughout society FEMINIST EMPOWERMENT PARADIGM Main policy focus : micro-finance as an entry point for women’s economic, social and political empowerment Main focus of gender policy gender awareness and feminist organization Reason for targeting women gender equality and human rights Underlying development paradigm structuralist and socialist feminist critique of capitalism Main policy instruments gender awareness and feminist organization Target group poor women Underlying assumption: women’s empowerment requires both fundamental change in the macro-level development agenda and explicit support for women to challenge gender subordination at the micro-level

6. Reason for targeting women higher levels of female poverty women’s responsibility for household well-being Definition of empowerment increased wellbeing, community development and self-sufficiency POVERTY REDUCTION PARADIGM Underlying development paradigm interventionist poverty reduction and community development Main focus of gender policy increasing women’s participation in self-help groups Main policy focus : part of an integrated programme for poverty reduction particularly for the poorest households • Main policy instruments • small savings and loan provision, • group formation for community development • methodologies for poverty targeting and/or operating in remote areas. • Underlying assumptions: • women’s empowerment, household level poverty reduction and community development are inherently synergistic • increased well-being and group formation will automatically enable women to empower themselves. Target group the poorest

7. Reason for targeting women • efficiency considerations because of high female repayment rates • contribution of women’s economic activity to economic growth Definition of empowerment economic empowerment, expansion of individual choice and capacities for self-reliance FINANCIAL SUSTAINABILITY PARADIGM Main focus of gender policy providing the frameworkfor equal access for women Underlying development paradigm neo-liberal market growth Main policy focus :increasing access to financially self-sustainable micro-finance programmes for large numbers of poor people, including women • Main policy instruments • setting of interest rates to cover costs, • separation of micro-finance from other interventions to enable separate accounting, • programme expansion to increase outreach and economies of scale, • ways of using groups to decrease costs of delivery Target group entrepreneurial poor Underlying assumption:increasing women’s access to micro-finance will automatically lead to economic empowerment without other complementary interventions or change in the macro-economic growth agenda.

8. SAVINGS AND REPAYMENT CREDIT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT INCREASED WOMEN'S INCREASED STATUS HOUSEHOLD INCOME ECONOMIC AND CHANGING UNDER WOMEN'S ACTIVITY ROLES CONTROL INCREASED INCREASED WOMEN'S CONFIDENCE AND INCREASED INCOME FROM NETWORKS AND CHILDREN'S WOMEN'S SKILLS ACCESS TO WOMEN'S MOBILITY WELLBEING WELLBEING (POWER TO) MARKETS ACTIVITIES (POWER WITH) HOUSEHOLD WOMEN'S SOCIAL WOMEN'S WELLBEING AND POLITICAL ECONOMIC Nutrition EMPOWERMENT EMPOWERMENT Health Literacy Happiness INCREASED POWER TO CHALLENGE INCREASED CONTROL OVER AND CHANGE GENDER MEN'S INVESTMENT INCOME, ASSETS RELATIONS WELLBEING AND AND RESOURCES ( POWER OVER) PRODUCTIVITY POVERTY WOMEN'S ECONOMIC HUMAN RIGHTS REDUCTION GROWTH EMPOWERMENT ASSUMPTIONS: VIRTUOUS SPIRALS

9. Amna is from the Beja tribe. She is about 35 years of age and married with four young children. She studied to Class 6 and has recently started studying again to learn more. She chose her husband because ' It is my life, I have to choose '. Her first business was soap-making which she started with a PASED loan in 1993. She has been borrowing regularly every six months and repaying since then. In 1999 she started a furniture business. Now she also deals in colour and satellite televisions. She earns about SL 2 million a month and has over 200 current clients. She only sells to women because she says women are more trustworthy than men. She varies the repayment period depending on her assessment of the client's ability to repay. She has built her own house in her own name, spending SL8 million. Her husband gives her all his income for the household. He goes to the market and helps her with her business. AMNA Trader in colour TVsLEAP, Sudan

10. SAVINGS AND ??Men may take loan CREDIT REPAYMENT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT EMPOWERMENT ASSUMPTIONS: VIRTUOUS SPIRALS but!!! ??Women may give the loan to men

11. QUESTIONING ECONOMICEMPOWERMENT ?Diversion of loan to other uses WOMEN'S ECONOMIC ACTIVITY ??Women may work from home with marketing by men INCREASED INCREASED INCOME FROM ACCESS TO WOMEN'S MARKETS ACTIVITIES WOMEN'S ECONOMIC EMPOWERMENT INCREASED INCREASED CONTROL OVER INVESTMENT INCOME, ASSETS AND AND RESOURCES PRODUCTIVITY ECONOMIC GROWTH SAVINGS AND REPAYMENT CREDIT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT ??Incomes may be very low ??All women’s income May go for consumption ??Men may control income

12. QUESTIONING WELLEBING ??Men may withdraw their contribution to the household INCREASED HOUSEHOLD INCOME UNDER WOMEN'S CONTROL ??Women’s decisions may replicate gender inequality MEN'S CHILDREN'S WELLBEING WELLBEING HOUSEHOLD ??Girls may suffer WELLBEING Nutrition Health Literacy Happiness WOMEN'S WELLBEING ??Women may forego own consumption ??POVERTY REDUCTION SAVINGS AND REPAYMENT CREDIT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT

13. QUESTIONING SOCIAL AND POLITICAL EMPOWERMENT SAVINGS AND REPAYMENT CREDIT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT POWER TO CHALLENGE AND CHANGE GENDER RELATIONS ( POWER OVER) ??May divert attention from wider change ??May replicate and reinforce existing roles ??Debt may decrease confidence INCREASED STATUS AND CHANGING ??Women may work from home ROLES INCREASED WOMEN'S CONFIDENCE AND NETWORKS AND SKILLS MOBILITY (POWER TO) WOMEN'S SOCIAL AND POLITICAL EMPOWERMENT WOMEN'S HUMAN RIGHTS

14. EMPOWERMENT IS NOT AN AUTOMATIC CONSEQUENCE OF MICRO-FINANCEPER SE SAVINGS AND REPAYMENT CREDIT WOMEN'S DECISION ABOUT SAVINGS AND CREDIT INCREASED WOMEN'S INCREASED STATUS HOUSEHOLD INCOME ECONOMIC AND CHANGING UNDER WOMEN'S ACTIVITY ROLES CONTROL INCREASED INCREASED WOMEN'S INCREASED INCOME FROM MEN'S NETWORKS AND CHILDREN'S ACCESS TO SKILLS WOMEN'S MOBILITY WELLBEING WELLBEING MARKETS (POWER TO) ACTIVITIES (POWER WITH) HOUSEHOLD WOMEN'S WOMEN'S SOCIAL WELLBEING AND POLITICAL ECONOMIC Nutrition EMPOWERMENT EMPOWERMENT Health Literacy Happiness INCREASED POWER TO CHALLENGE INCREASED CONTROL OVER AND CHANGE GENDER INVESTMENT WOMEN'S INCOME, ASSETS RELATIONS AND WELLBEING AND RESOURCES ( POWER OVER) PRODUCTIVITY ??POVERTY WOMEN'S ECONOMIC REDUCTION HUMAN RIGHTS GROWTH ALL ASSUMPTIONS MUST BE QUESTIONED ??? ??? ??? CONFIDENCE AND

15. RISKS Credit equals debt Savings may come from necessary consumption or productive investment Contribution of micro-finance alone appears to be most limited for the poorest and most disadvantaged women. • OPPORTUNITIES • Micro-finance programmes can make a significant contribution to women’s empowerment and gender equality • Gender equality and women’s empowerment are central to achievement of all other development goals. • In micro-finance important for financial sustainability, poverty reach and poverty reduction KEY QUESTIONS WAYSFORWARD What are the implications for macro-level policy advocacy? What are the implications for organisations themselves? How can micro-finance support men’s role in change? How can micro-finance groups build on and strengthen women’s own strategies? What sorts of products,services are needed for empowerment?

16. YOUR QUESTIONSSO FAR ??