Are Microfinance Tools the Key to Empower Women out of Poverty?

Abstract

Microfinance has made a significant contribution in the social-economic context in countries such as Bangladesh, India and Malaysia. In developing countries, microfinance has become a useful tool for poverty reduction and enhancement of economic growth and development strategies. Existing research in the field points out to the existence of both cases of success and failure on how to use microfinance programmes to support poor female clients and help women to move out of poverty and discriminatory situations in developing countries. This study offers and in depth analysis of existing research in the microfinance field with a focus on gender issues and governments understanding of the importance of empowering women to help enhance economic progress and development. The study examines the role of microfinance for women’s empowerment by focusing in five major issues: i) Historical assessment of gender inequity in social-economic development processes. ii) Insights on the women’s role in economic development. iii) Highlight of women empowerment in sustainable development goals in developing countries. iv) Analysis of the impact of microfinance on the empowerment of women. v) The role of microfinance to empower women in the case of Vietnam.