Microfinance and Women’s Empowerment: A Cross-Caste Analysis in West Bengal

Abstract

The paper makes an effort to gauge the benefits of microfinance through self-help groups on women's empowerment on the basis of primary survey undertaken in the district of Cooch Behar and Purulia of West Bengal among Scheduled Caste and Scheduled Tribe women. Empowerment is measured in terms of decision making autonomy regarding economic, social, and familial decisions on intra-household level relations across social groups (Scheduled Caste, Scheduled Tribe) in West Bengal. The research is empirical in nature based mainly on primary data collected through field survey of Self-Help Group Linkage Programme by NABARD (National Bank for Agriculture and Rural Development) Microfinance has the potential to have a powerful impact on women's empowerment. Empowerment is a complex process of change that is experienced by all individuals somewhat differently. Strengthening women's financial base and economic contribution to their families and communities have a role to play in empowering the status of women in different strata of society. It is unlikely that only one intervention such as the provision of credit only will completely alter power and gender relations. Women often value the non-economic benefits of a group lending programme that is SHG programme as much or more than the credit. Some of the most valued include expanded business and social networks, improved self-esteem, increased household (non-monetary benefits) decision making power, and increased respect and prestige from both male and female relatives and community members. When loans are channeled through women's groups and combined with more investment in social intermediation, substantial shifts in decision-making patterns do emerge.