MICROFINANCE PAPER WRAP-UP: Exploring Linkages: Women’s Empowerment, Microfinance and Health Education; By Lora du Moulin, Jean Pouit, Leyla Sharafi, Aminata Toure, Kai Lashley, Barbara Ryan, Gayle Nelson and Divya Alexander; Published by United Nations Population Fund (UNFPA)

By Lora du Moulin, Jean Pouit, Leyla Sharafi, Aminata Toure, Kai Lashley, Barbara Ryan, Gayle Nelson and Divya Alexander; published by the United Nations Population Fund (UNFPA); design and analysis of study by Research and Applications for Alternative Financing for Development (RAFAD); 2011; 15 pages; available at http://www.unfpa.org/public/home/publications/pid/7262

This study by Lora du Moulin et al highlights the results of a survey of approximately 2,500 female clients of 32 microfinance institutions (MFIs) in 14 countries across Asia, Africa and Latin America. Only married women and others living with a male partner were invited to participate. Two groups were identified for the study: (1) new clients who have been members of an MFI for a period of no more than one month, serving as the control group, and (2) clients who have been members of an MFI for a period of three or more years, serving as the treatment group. The study specifically examines the links between microfinance and women’s empowerment and also addresses the linkage between social services provided by MFIs and women’s sexual and reproductive health.

The findings from the survey are:

1. Empowerment:
The effects of microfinance on women were measured through the following four components of empowerment: the right to have the power to control their own lives, both within and outside the home; the right to have access to opportunities and resources; the right to have and to determine choices within the household such as decisions on use of earnings and how many children to have; and a sense of self-worth. Indicators collated to determine the level of empowerment included the following: support from husband or domestic partner, having a separate income stream from husband or domestic partner, level of personal savings and assets, involvement in household decision making, confidence and instances of domestic violence. Approximately 87 percent of participants informed their husband or domestic partner about their microfinance involvement, 85 percent of the husbands or domestic partners supported the MFI client in the endeavor, 81 percent of the women had an income stream separate from their spouse or domestic partner, 91 percent of the study participants were convinced that microfinance would benefit them positively by adding to their assets over the following year and participants recorded increases in personal savings between 42 and 48 percent.

2. Health Education Services:
The study also examines the extent to which health education services provided by MFIs affected the sexual and reproductive health of clients. Approximately 30 percent of the participants in the survey were enrolled with MFIs that provided health education. The control group, i.e. clients who have been members of the MFI for a period of no more than one month, were excluded from this portion of the study as it would be too early to assess the impact of the services. The survey indicated that 67 percent of the participants (compared to 61 percent of the clients associated with MFIs not offering health education) were likely to use contraceptives and 55 percent of the participants (compared to 45 percent of the clients associated with MFIs not offering health education) were likely to seek medical support during childbirth. The results also indicate that the health education offered by the MFIs resulted in increased awareness among participants about HIV/AIDS, an increased voice for women in family planning discussions with their partners and a lower incidence of domestic violence.

3. Synergies between microfinance and health education:
The study indicates that the benefits of health education to women are further enhanced through their rights of access to resources and opportunities such as long-term financial planning and increased savings. A higher level of assets and savings was correlated with a higher investment in health education, which is expected to lead to the adoption of healthier practices such as use of contraceptives, thereby improving the sexual and reproductive health of women.

In conclusion, the authors argue that microfinance has the ability to expand the role of women beyond household duties, empowering them by providing financial independence including creation of separate income streams, increases in personal savings and increases in assets. In addition to this, health education offered in conjunction with loans has the potential to positively impact the sexual and reproductive health of women. The authors recommend that MFIs join forces with bilateral and international organizations to help in the integration of social services and microfinance.

By Medha Ravi, Reasearch Associate

About the United Nations Population Fund (UNFPA):
Established in 1968, the United Nations Population Fund (UNFPA) is an international development organization that focuses on gender equality, reproductive health and population and development strategies. UNFPA works in partnership with governments, along with other United Nations agencies, NGOs, foundations and the private sector , in approximately 150 countries. As of 2009, UNFPA reported a total income of USD 783 million, with approximately USD 469 million representing voluntary contributions from governments and private donors.

About Research and Applications for Alternative Financing for Development (RAFAD):
Founded in 1985 in Geneva, Research and Applications for Alternative Financing for Development (RAFAD) is a private foundation that focuses on the development of grassroots organizations, microfinance institutions (MFIs) and micro- and small enterprises. Its activities include provision of guarantees to MFIs through its International Guarantee Fund (IGF) and training services to MFIs in “ethical financing”, risk management and sourcing funds through commercial banks.

Similar Posts: