The relationship between microcredit and women’s empowerment and well-being : A minor field study in Bangladesh

Abstract: Bangladesh is one of the poorest countries in the world and women are often subordinated men. As an attempt to reduce poverty and increase women’s empowerment, microcredit has been developed and offered to the poor, mostly to women. Allowing women to be more involved in decision-making processes, ensuring their right to a sense of self-worth and their right to adequate standard of living are of great importance. As are their quality of life in terms of leisure time and household work. However, previous research have showed mixed results and there is not yet any consensual opinion about the role of microcredit. The aim of this thesis istherefore to investigate the impact of microcredit on women’s empowerment and well-being. To do so, we have conducted two studies, one quantitative and one qualitative, in order to provide a deeper understanding and analysis. The effect of microcredit on women’sempowerment and well-being has been studied through the variable length of engagement inthe microcredit program. First, we use OLS regressions to measure women’s empowerment through decision making, and women’s well-being through time allocation and standard of living. In addition to this, we have conducted eight semi-structured interviews with female loan takers in Dhaka. Through the qualitative part we are able to study psychological aspects. Overall, we find no statistical significant relationship between the variable length ofengagement and women’s empowerment and well-being in our quantitative study. However, in our qualitative study we are able to conclude that all women in our sample have experienced some changes since taking the loan and we are also able to conclude that the length ofengagement to some extent positively affects the women’s standard of living.