The Impact of Microfinance on Decision‐Making Agency: Evidence from South India

Evaluations of the effects of microfinance programmes on women's empowerment generate mixed results. While some are supportive of microfinance's ability to induce a process of economic, social and political empowerment, others are more sceptical and even point to a deterioration of women's overall well‐being. Against this background, development scholars and practitioners have sought to distil some of the ingredients that might increase the likelihood of empowerment or at least reduce adverse effects. This article formally tests the impact of some of the suggested changes in programme features on one particular dimension of empowerment: decision‐making agency. Using household survey data from South India, the author explores the importance of the borrower's gender and the lending technology for intra‐household decision‐making processes. It is shown that direct bank–borrower credit delivery does not challenge the existing decision‐making patterns, regardless of whether men or women receive the credit. These findings change when credit is combined with financial and social group intermediation. Women's group membership seriously shifts overall decision‐making patterns from norm‐guided behaviour and male decision‐making to more joint and female decision‐making. Longer‐term group membership and more intensive training and group meetings strengthen these patterns.     

The Discourse of Maendeleo and the Politics of Women’s Participation on Mount Kilimanjaro

Studies of participatory development and empowerment often fail to place people’s actions and motivations within their wider cultural, social, political and economic context. Drawing on fieldwork which looked at village‐based women’s groups on Mount Kilimanjaro, Tanzania, this article deconstructs the dominant discourse of development on the mountain (maendeleo) to show how women’s participation in their local organizations is used as a strategy to boost their social status and financial gains. Local, national and global discourses on development, modernity and gender are reappropriated by Chagga men and women to produce a normative Chagga developmental subjectivity which women can demonstrate by participating in women’s groups. The over‐representation of better‐off and higher‐status women in these groups suggests that, in excluding the poorest women, participation in women’s groups is serving to legitimate, and perpetuate, existing inequalities within Chagga society.     

Gender and the Silences of Social Capital: Lessons from Latin America

Social capital has entered development policy thinking and practice in Latin America where it converges with the premises of a new development agenda that emerged in the 1990s. Women are often central to the forms of social capital that development agencies are keen to mobilize in poverty relief programmes, but the terms of women’s insertion into these programmes is rarely problematized. This article critically examines the gendered assumptions that govern efforts to build social capital, and explores some of the tensions that have arisen in post‐transition Latin America between women’s rights and social capital agendas.     

Capitalizing on Women's Social Capital? Women‐Targeted Microfinance in Bolivia

Both social capital and microfinance are central to mainstream development interventions, and both are predicated on the need to recognize the importance of social factors in development. Microfinance institutions mobilize social capital in the form of a group guarantee, and aim to support the development of sustainable financial institutions and income generation. Women are targeted in part because of the effectiveness of their social capital as collateral. However, although social capital is assumed to support development and income generation, the precise dynamics involved in this are rarely explored. This article examines the construction of social capital and its relationship to income generation, based on a long‐term ethnographic study of village life in rural Bolivia and the microfinance institution operating there. The author examines the complexity and gendered contradictions implied in the way that social capital is generally viewed to support economic development. It is suggested that the way microfinance institutions use social capital to support sustainable financial institutions and income generation does not always reflect the way that women's networks support access to resources and ultimately, economic development.     

Towards individualising couple finance: women’s housing assets and household decisions in Japan

Individualisation, which is increasingly promoted in European welfare states, tends to be absent from policy discourse as well as housing studies in Japan. It is largely because the ‘family as a unit’ is still a dominant approach in their household finance, social security and taxation systems, which also reflects women’s lack of home ownership. However, recent demographic trends such as falling marriage rates, low fertility and increased female labour participation indicate significant diversification in women’s life-course. Thus, today women making their own financial investment and house purchase have increasingly become popular practice. In this context, a new approach beyond the conventional ‘family as a unit’ may be required in the development of a new social contract. Drawing on data from qualitative research conducted among women in their 30s, this article explores the relationship between financial independence, household decisions and asset holding of partnered women in Japan, which reveals contested dimensions of women’s independence and autonomy in household and family life. Through the lens of home ownership, it considers the importance of promoting individual assets in order to foster gender equality in marriage.     

‘If You Fall,Stand Up Again’: The Moral Nature of Financial Literacy in the Global South

Over the past decade a range of development actors have begun to implement financial literacy training in low‐income countries. These programmes have become a key pillar of financial inclusion projects targeting the rural poor but, to date, they have received little scholarly attention. This article draws on ethnographic observation of two financial literacy programmes implemented by microfinance institutions in Cambodia to examine the current practices of financial education in the global South. The findings highlight that while financial literacy training purports to be a technical, skill‐building intervention aimed at enabling knowledge, its practices work primarily to impress upon borrowers moral lessons associated with creditworthiness, while also stressing individual responsibility for debt stress. In this way, it furthers the goals of financial providers, but fails to address the complex and real problems of debt stress. The authors suggest that financial literacy, at least where it is enacted by microfinance providers, is unlikely to moderate the problems of over‐indebtedness faced by rural borrowers.     

The rise of Islamic finance: post‐colonial market‐building in central Asia and Russia

Islamic finance signifies more than a projection of religious affiliation. The importance of Islamic finance is increasing in central Asia, both as a source of capital and as a form of post‐colonial market‐building. In central Asia, it is an important facet of the new phenomena of ‘nation‐branding’ and a means of reinvigorating the economy. In identity politics, Islamic finance projects an attitude of religious tolerance allowing states in the region to reposition their geopolitical identity relative to the Islamic community. This creates a ‘performance’ of Islamic finance that facilitates the creation of legitimacy for the state. Adopting Islamic finance projects images of the state's religious tolerance and diversity without changing the underlying structures; it suggests an ‘Islamicness’ that is useful to the development and post‐colonial goals of the state. As such, it creates opportunities for geopolitical alliances with Muslim countries. Economically, it appeals to rising financial‐industrial elites seeking new investment‐opportunities, which reduces pressure on the state to democratize. Meanwhile, in Russia, Islamic finance is an alternative source of capital for the sanctions‐hit state and a useful identity marker with which to connect to the increasingly wary Caucuses and Commonwealth of Independent States countries, lending it a wider significance across Eurasia.     

Dynamic Resistance: Third‐Sector Processes for Transforming Neoliberalization

This paper proposes a holistic framework called dynamic resistance for analysing and animating third‐sector organizations’ contestations of neoliberalization. It argues that the third sector constitutes a rich terrain for transforming neoliberalization processes to promote human flourishing and social justice. Dynamic resistance comprises four elements—rejection, resilience, resourcefulness, and reflexive practice—within a cyclical process which can occur simultaneously at different organizational scales. Four vignettes, drawn from participatory action research, illustrate these processes at Oblong, a grassroots community group in Leeds which now runs a community centre. Despite engagement with neoliberal mechanisms, Oblong provides an example of dynamic resistance in practice, avoiding “mission drift” and prioritizing self‐defined core values of equality, collectivity, empowerment, sustainability, respect and care, and being community led. Dynamic resistance suggests third‐sector organizations’ capacity to construct transformative social empowerment through ever‐changing practices which are proactive and self‐directed as well as responsive.     

Out of the dark but not out of the cage: women's empowerment and gender relations in the Dangme West district of Ghana

In Ghana, strategies to address poverty among rural women have often been linked to women's empowerment programmes with credit as a core component of these. Yet, many programmes focus on the economic benefit to women without necessarily looking at the impact on gender relations at the household level and its implications on women. Using quantitative and qualitative data from the Dangme West district of Ghana, this article shows how poverty reduction programmes with credit components can reduce women's vulnerability to poverty and empower them. But much more needs to be done to complement these efforts. The study shows that women beneficiaries as against women non-beneficiaries have significantly improved their socio-economic status through access to financial and non-financial resources. This has in certain instances improved gender relations at the household level, with women being recognized as earners of income and contributors to household budget. However, some women still regard their spouses as ‘heads’ and require their consent in decisions even in issues that have to do with their own personal lives. Moreover, the improved economic status of women has resulted in a ‘power conflict’, creating confrontation between spouses. The article recommends that, as part of their programmes, assisting organizations and institutions must address ‘power relations’, the basis of gender subordination at the household level, otherwise socio-cultural norms and practices, underpinned by patriarchal structures, will remain ‘cages’ for rural women.     

Population Control in the Troubled Present: The ‘120 by 20’ Target and Implant Access Program

In contrast to claims made by some, it is evident from recent, high‐profile family planning programmes that population control is not ‘history’, belonging to some troubled past. Rather, it persists in the troubled present alongside human rights and women's empowerment approaches. To make this argument, this article examines two family planning efforts which emerged from the 2012 London Summit on Family Planning: the ‘120 by 20’ target of Family Planning 2020 (FP2020), and the Implant Access Program (IAP). These examples illustrate population control practices in today's family planning programmes and highlight their serious implications. First, there are shortcomings in conceptualizing population control as largely in the past. Second, the ‘120 by 20’ and IAP examples suggest that FP2020 as a whole merits critical inquiry. Third, FP2020 raises issues of contraceptive safety regarding both the methods promoted and their mass dissemination. Finally, the claim that population control is history blocks productive re‐visioning of sexual and reproductive health and rights for all people as a development priority.     

Social Capital and Post‐Conflict Reconstruction in Burundi: The Limits of Community‐based Reconstruction

Using an examination of three NGO interventions in post‐conflict Burundi, this article questions community‐based reconstruction as a mechanism to rebuild social capital after conflicts, particularly when direct livelihood support is provided. The authors demonstrate a general shortcoming of the methodology employed in community‐based development (CBD), namely its focus on ‘technical procedural design’, which results in what may be termed ‘supply‐driven demand‐driven’ reconstruction. The findings suggest the need for a political economy perspective on social capital, which acknowledges that the effects on social capital are determined by the type of economic resource CBD gives access to. Through the use of a resource typology, the case studies show that the CBD methodology and the potential effects on social capital differ when applied to public and non‐strategic versus private and strategic resources. This has particular consequences for post‐conflict situations. A generalized application of CBD methodology to post‐conflict reconstruction programmes fails to take adequate account of the nature of the interventions and the challenges posed by the particular post‐conflict setting. The article therefore questions the current popular ‘social engineering’ approach to post‐conflict reconstruction.     

The European union's support for new technology‐based firms: An assessment of the first three years of the European seed capital fund scheme

In 1988, the European Commission launched a pilot programme, the European Seed Capital Fund Scheme, designed to create 24 new seed capital funds in the 12 member states and to increase the availability of equity finance to innovative start‐up and early‐stage enterprises. The findings of a pan‐European assessment carried out in the spring of 1992 on 21 of the 22 supported funds and 40 of their investee companies are presented. The actions of the funds have allowed additional resources to be directed to young technology‐based firms. However, the research findings also suggest that the majority of supported funds are under‐capitalized which will result in major problems of financial viability in the medium term. The research also questions the sufficiency of supply side policies alone to address issues of regional ‘equity gaps’ particularly related to the support for NTBFs within Europe.     

Beyond ‘State Ibuism’: Empowerment Effects in State‐led Development in Indonesia

This article examines the ways women's processes of self‐formation are indicative (or not) of new possibilities for women's gendered selves in the post‐Reformasi period in Indonesia. It focuses on the development arena to reveal how shifts in state rhetoric, from top‐down guidance based on a patriarchal familial model to bottom‐up, inclusive development based on empowerment, have transformed what is referred to as the ‘topography for self’. The article draws upon theories of personhood a) to show how gendered selves emerge and are contested within particular historical conditions; and b) to develop an alternative framework of ‘empowerment’ that focuses not on capabilities and choice, but on an expansion in the possibilities for self. It argues that models of community‐driven development have provided new opportunities for women to hold and enact socially recognizable subject positions. This constitutes a form of empowerment for individual women but does not necessarily reflect challenges to patriarchy in Indonesia.     

Social Policy for Neoliberalism: The Bolsa Família Programme in Brazil

The Programa Bolsa Família (PBF) is one of the largest conditional cash transfer (CCT) programmes in the world. CCTs have been described as a ‘magic bullet’ for development, and PBF is widely regarded as an exemplary programme. Examination of its conceptual underpinnings, features, impact and limitations shows that PBF provides substantial income support to the poorest. However, PBF is also self‐limiting and it can offer only limited long‐term gains to the poor. More significant outcomes require the expansion of the scope of PBF and other social programmes towards the universalization and decommodification of social provision in Brazil.     

Women Beneficiaries or Women Bearing the Cost? A Gendered Analysis of the Red de Protección Social in Nicaragua

Conditional Cash Transfer programmes aim to alleviate short‐term poverty through cash transfers to poor households, and to reduce longer‐term poverty through making these transfers conditional on household investment in the health and education of children. These programmes have become increasingly popular with institutions such as the World Bank. However, the need for conditionalities has been questioned on a number of levels, including its necessity: it has been suggested that the cash transfer in itself may be sufficient to secure most of the programme's wider aims. The example of Nicaragua supports this contention, demonstrating that only a small incentive is needed to bring the desired changes in the uptake of education, since this is something prized by the poor themselves. In health, the Nicaraguan case suggests that demand‐side initiatives might not be as important as supply‐side changes that improve the affordability and accessibility of services. The Nicaragua case also highlights the long‐term limitations of applying such programmes in countries with high levels of poverty and low economic growth. A gendered analysis of the programme highlights the fact that women ‘beneficiaries’ bear the economic and social cost of the programme without apparent benefit to themselves or even necessarily to the household in the short or longer term.     

Actually how Empowering is Microcredit?

This article re‐assesses the effect of microcredit programme participation on women's empowerment by applying an analytical framework that recognizes the conceptual shift in emphasis in the definition of empowerment, from notions of greater well‐being of women to notions of women's choice and active agency in the attainment of greater well‐being. The author finds that microcredit programme participation has only a limited direct effect in increasing women's access to choice‐enhancing resources, but has a much stronger effect in increasing women's ability to exercise agency in intra‐household processes. Consequently, programme participation is able to increase women's welfare and possibly to reduce male bias in welfare outcomes, particularly in poor households.     

The Macro‐Economic Effects of Directed Credit Policies: A Real‐Financial CGE Evaluation for India

The effectiveness of directed credit programmes as an instrument for economic development is the subject of considerable debate. However, the focus of this debate is almost exclusively on the intra‐sectoral effects of directed credit and its adverse effects on financial sector performance, neglecting possible spillover effects on demand, production and investment in the rest of the economy. This article tries to fill this gap by examining the macro‐economic effects of directed credit in India with the help of a novel real‐financial computable general equilibrium (CGE) model. Focusing on credit rather than money, the model goes beyond earlier modelling approaches by (1) incorporating directed credit policy and credit rationing; (2) recognizing the dual role of credit for working capital and investment; and (3) allowing for switches between credit‐constrained, capacity‐constrained and demand‐constrained regimes. The results from short‐ and medium‐term simulation experiments with the model indicate that, when credit market failures result in rationing as in India’s agricultural and small‐scale industrial sectors, the macro‐economic effects of directed credit are likely to be significant and positive.     

After the Nicaraguan Non‐Payment Crisis: Alternatives to Microfinance Narcissism

This article argues against ‘microfinance narcissism’ and calls for a re‐politicization of the microfinance paradigm. The dominant verdict on microcredit has undergone a damning transformation, from ‘magic bullet for poverty reduction’ to ‘cause of suicide’. Nowadays, both radical critics and mainstream voices deplore microcredit's negative impact on micro‐entrepreneurs. They argue for a reorientation where credit is targeted at established small and medium‐sized enterprises, particularly in rural areas. The crisis in microfinance worldwide, including burgeoning protests, are viewed as proof of the commercial derailment and/or misplaced faith in microfinance's positive social and economic impact on the poor. This article engages with this debate through a study of the Nicaraguan micro‐finance crisis. It challenges existing analyses that pin the crisis on agricultural over‐indebtedness, lack of due diligence, or Sandinista populist politics. Illustrating the dangers of neglecting the diverse nature of microfinance, it reveals the paradoxical outcomes of the crisis: a refocus on the urban at the expense of agricultural credit for small and medium enterprises and a consolidation of the power of national processing elites. Nicaragua's Non‐Payment Movement is also shown to be both a product of elite manipulation and an expression of legitimate resistance to an industry that turns a blind eye to the manner in which markets and politics constrain clients’ potential.     

Constructing Social Capital: Self‐Help Groups and Rural Women's Development in India

The success of the group approach in rural micro‐finance among women has inspired the tendency to look at all networking as essentially good and desirable in rural community development, without acknowledging the entrenched caste, class, ethnic and religious hierarchies that lead to diversities among women. Government schemes designed for poverty alleviation among rural women tend to be influenced by concepts and models that have been successful elsewhere, but do not take into account the diversities of situations at the local level. Internationally popular catchwords are used indiscriminately without questioning how these concepts can work effectively in the specific local context. This paper examines why some ‘self‐help groups’ fail by using the Development of Women and Children in Rural Areas (DWCRA) experience in India. The empirical survey was done over a period of two years in Burdwan, a relatively rich agricultural tract located in eastern India. We argue that whilst the ‘group’ has inherent benefits, it must never be allowed to become the paradigm in developmental policies for women.     

Marginalized for a lifetime: The everyday experiences of gulag survivors in post-Soviet Magadan

Over the past decade notions of social capital have become embedded in the social development lexicon, often presented as the ‘missing link’ within development theory. Much social capital‐based research takes Robert Putnam's theorization of the subject as its starting point. Putnam's work argues that social capital can be measured by a region's levels of trust and civic engagement. While its use, and conceptualization, has undergone much academic debate, often formal institutions still employ this very narrow, and arguably Western‐centric, reading of the subject. This paper argues that while at the micro‐level social capital has little to do with the civic engagement and trust theories posited by Putnam, it still has relevance to the lives of marginalized individuals and is an important factor in their continued survival. To explore this, drawing on extensive qualitative research conducted in Magadan, Moscow and St Petersburg, I critically examine the construction of everyday survival strategies among Gulag survivors living in Russia's far northeast city of Magadan. Denied a return to their ‘homeland’ upon their release, this group experienced considerable marginalization in the post‐Stalin period. This was exacerbated when the collapse of the Soviet Union saw pensions in the far northeast of Russia fall to below 50% of the state‐set subsistence minimum. The paper demonstrates the importance of social capital to this group by showing how their survival is based on far more than interactions with formal and informal organizations.