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Many microfinance programmes
see themselves as participatory
organisations. Most female-targeted
programmes and services are group-based.
In some contexts, microfinance
programmes may provide one
of the few regular excuses
for women to meet with other
women to discuss problems.
In urban areas where there
is rapid population expansion
caused by conflict or natural
disasters, microfinance groups
may provide a very necessary
structure for building networks
and ‘social capital'.
Is participation always empowering?
However, serious questions
must be asked about the types
of participation being promoted,
the underlying motivation and
whose interests are being served.
Participation has inherent
costs for both programmes and
clients. In many programmes
participation means little
more than women's contribution
of time and resources to reduce
the costs and risks to programme
administration and donors.
Significantly,
microfinance programmes rarely
make such large demands on
men's time and where they do
so are generally unsuccessful.
Empowerment cannot be assumed
through participation
in mutual liability groups per
se but by focused strategies
to build on these group structures
and supporting women (and men)
to organise to address the
many problems which they face.
Many NGOs in India and Bangladesh
are supporting women's groups
to take collective action on
many issues important to them.
But funding for these initiatives
has been undermined by the
prioritisation of financial
sustainability.
Other women
may be extremely active
in other areas of life.
In many societies women
have extensive networks
through ROSCAs, market associations,
church meetings and so
on. Some of these women may
want an efficient service with
individual loans instead of
spending their time in
group meetings solely for microfinance.
Participation
without groups
The equation of participation
with group formation also gives the
impression that participation
is irrelevant in individual
lending programmes. However
even here, providing an efficient
service requires programmes
to be ' market relevant ' through
having detailed knowledge of
clients needs. A participatory
consultative process is needed
to see how products and services
can be improved. Some form
of client representation is
also needed in order to maximise
positive and avoid
negative impacts.
A more critical approach
There is not necessarily
any one ideal model of participation
which would be applicable for
all women in all contexts in
all programmes. What is needed
is a consultative process
to identify:
• what sorts of
participation are most central
to providing the types of services
which women want in any given
context and any differences
between women.
• which programme
decisions are most important
for women to control because
they are most crucial for poverty
elimination and empowerment.
• how the broad
organisational base of microfinance
groups can form the basis for
advocacy and lobbying to address
the many macro level constraints
affecting women's ability to
benefit from microfinance.
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