IMPACT OF MICROFINANCE ON WOMEN EMPOWERMENT: A CASE OF SARHAD RURAL SUPPORT PROGRAMME (SRSP)”

Abstract

Microfinance has been viewed as an effective strategy to empower women particular in developing countries. However, the link between microfinance and women’s empowerment remains debatable as a large number of studies suggest that microfinance helps women increasing their income earning abilities, leading to greater power within the household, while others think that it may also lead to a more vulnerable position for woman. With this backdrop, the present research was conducted to study women empowerment generated because of provision of microfinance in the Khyber Pakhtunkhwa province of Pakistan taking Sarhad Rural Support Programme (SRSP) as a case study. Using Jo Rowland’s three-dimensional model of empowerment, this study aimed at investigating whether financial independence translates into bringing change in power relations at personal, relational, and societal levels. By using multistage random sampling, primary data was collected from 345 women beneficiaries of the SRSP residing in Peshawar, Mardan, Charsadda and Swat districts of Khyber Pakhtunkhwa province. An equal-weight index was formed for each dimension of empowerment. Chi-square test of association was also made to check for moderating impact of elements of the demographic profile of the respondents are their ranking on the indices. Finally, to test the hypotheses, a test for population proportion was manually conducted. The study found that SRSP’s microfinance was contributing positively towards empowering women at a personal, relational and societal level. On the personal index, all the respondents were ranked medium to high. At the relational index, the majority of the respondents were ranked high and medium, while a small percentage was ranked low. On the societal dimension, all respondents were ranked medium. Looking at induvial variables, the study found potential areas (locus of control, acceptability of gender-based violence, bargaining power) where targeted support by the organization could further increase the empowerment of the beneficiaries. Therefore, a longitudinal study design along with triangulation of quantitative findings with qualitative data is proposed for future studies.