Why is Gender Policy Necessary? Evidence of Gender Impact

Literature prepared for the international and regional Micro-credit Summits from 1997onward, many donor statements on credit and NGO funding proposals present an extremely attractive vision of increasing numbers of expanding, financially self-sustainable micro-finance programmes reaching large numbers of poor women borrowers. Through their contribution to women’s ability to earn an income these programmes are assumed to initiate a series of ‘virtuous spirals’ of economic empowerment, increased well-being for women and their families and wider social and political empowerment.

Some women, including some very poor women, have been able to set up enterprises, bring about change in gender relations in the household and become leaders in their community. Nevertheless, despite its shortcomings the evidence indicates that all the linkages assumed in the literature between access and empowerment need to be questioned. An increasing body of evidence suggests that contributionsto women's empowerment of micro-finance per se cannot be assumed and current complacency in this regard is misplaced:

• Credit is also debt. Savings, loan interest and insurance premiums are potentially also foregone investment in businesses, children's education and health or necessary consumption.
• In many cases women continue to earn very low incomes in increasingly saturated markets.
• Women's access to even these very small incomes may lead to men withdrawing their contribution to household expenses.
• Group formation for debt repayment takes up women's precious time and does not necessarily lead to changes in women's status.

Contextual constraints at all levels contine to prevent women from accessing programmes, increasing or controlling incomes or challenging gender inequality and injustice. Where women are unable to significantly increase incomes under their control or negotiate changes in household and community gender inequalities, women become dependent on loans to continue in very low-paid occupations with heavier workloads, high levels of stress and enjoying little benefit.Credit (ie debt and pressure for loan repayment) may lead to severe impoverishment, abandonment and put serious strains on networks with other women. The contribution of micro-finance alone appears to be most limited for the poorest and most disadvantaged women.