Lecture 7: Microfinance and Gender

Question 1

Advantages of directing microfinance towards women

Answer 1

1. Firstly, women are often more * Conservative in their investment strategies, and * Easily influenced by peer pressure and loan officers
2. Secondly, aiming resources to women may deliver stronger development impacts.
3. Thirdly, MFIs generally pursue social objectives

Question 2

Counter argument

Answer 2

• Male entrepreneurs are able to expand enterprises more aggressively when given access to credit. * Thus, there may be a trade-off between * Lending to women in the name of poverty reduction and * Lending to men in the name of economic growth.

Because women are less mobile and more fearful about social sanctions, they tend to be more risk-averse than men.

The fear is that if such aid was given to men, they might sell the food stamps and misspend the resources—possibly wasting money on gambling, tobacco, and alcohol.

Question 3

Positive impact on women of microfinance

Answer 3

that bargaining power is driven by women’s ability to credibly threaten to leave the household.

• The credibility of those threats will depend on * Earning power, and * Women’s relative power within the household (e.g., divorce or employment legislation).

microfinance may affect household choices through a variety of channels. * By changing bargaining power, * By raising overall resources, * By affecting the returns to investments in human capital, and * By influencing attitudes and norms.

Question 4

Concerns

Answer 4

concern that credit directed to women might end up being redirected to male household heads. * In fact, they are the ones that actually carrying out investment projects of their own, with the resources borrowed by women

violence in the household had increased as a result of their involvement with microfinance. * He suggests that microfinance exacerbates tensions because men feel increasingly threatened in their role as primary income earners in traditional societies.

Question 5

Absolute empowerment

Answer 5

indicates outcomes that measure education, health and nutrition, labour force participation and so on.

Question 6

Relative empowerment

Answer 6

highlights the relative position of a woman in * Making household decisions, and * Controlling resources within the household in comparison with the men’s position