Ritika Madan* and Monika Goel
Microfinance schemes aim to empower women, but their impact is debated. While some studies show positive outcomes, others find negatives or neutrals. Research often quantifies empowerment through outcome-based metrics, like access to credit, yielding positive results. However, viewing empowerment as a process, such as credit usage and repayment, reveals contradictions. For instance, increased income may not always signify empowerment if women lose control over loans or bear sole responsibility for repayment. Our study, based on 2022-23 data from Gurugram, stresses the need to consider both outcomes and processes in assessing empowerment. Analysing data from 300 women households in Gurugram, we find that the impact of microfinance on women's empowerment remains contentious despite its role in household crises management. Comparing 150 microcredit participants with 150 non-participants, the study analysed "household susceptivity" and "empowerment" using contextual indicators. While microfinance helps households in crises, it falls short in directly empowering women. Indicators of susceptivity and empowerment vary across cultures, necessitating context-specific assessments. Women often allocate credits to household needs, but lack of co-ownership disempowers them. Policy implications include addressing patriarchal control over assets and promoting entrepreneurial ventures through co-ownership, monitoring, and training.
HTML PDFShare this article
