ROLE OF MICROCREDIT IN DEVELOPING SOCIO-ECONOMIC STATUS AND WOMEN EMPOWERMENT IN THE NORTHERN REGION OF BANGLADESH

Abstract

The present study was conducted to investigate the role of microcredit program on improving socio-economic status and women's empowerment in northern region of Bangladesh. Three districts namely Gaibandha, Rangpur and Dinajpur were selected then the leading NGOs namely ASA, BRAC, Grameen Bank, TMSS, SKS, and KARITAS were targeted for data collection. A total 247 women (Microcredit borrowers) were selected randomly from six upazillas from these three districts as the sample of the study. The focus of the quantitative study was to investigate whether there were significant differences in income, expenditure, savings, basic amenities and wealth, as well as the attitudinal and behavioral changes in the women before and after involving with microcredit. The findings of the study showed that microcredit reduces economic problems of the women and helps to enhance economic empowerment. And also after taking loan or involving with microcredit their family income, expenditure and savings increased significantly. Economic empowerment have led to greater socio-cultural empowerment, particularly in having wider social networks, freedom of mobility and transformation of power relations with regard to facilitating communication with husbands in issues such as family management. So that economic empowerment contributes to the well-being of the family through raising the income; improving living conditions, support education of children, and enhancing the basic amenities & wealth. The empowerment of women, through the collective action of the NGOs, would lead to benefits not only for the individual woman and women's groups but also for the family and community as a whole. The possible outcomes of women's empowerment through microcredit at the household level are self-employment, sustainable livelihoods, improved health and education, enhanced social dignity and better status of women. Also social development approaches of the NGOs will improve the socio-economic status of the women. These approaches will break the gender division of labor; provide women to access markets, skill training and technological support. Hence the microcredit and social development approaches of the NGOs will help to promote significant changes in the women and improve their status. Finally based on the findings of the study, some policy recommendations were suggested for future policy implications of NGOs which can play an important role to improve socio-economic status and women empowerment in Bangladesh.