Role of Microcredit in Tackling Feminization of Poverty

The construct of the 'feminisation of poverty' has focused the gender as an increasingly prominent place in international discourses on poverty and poverty reduction. Feminization is a process, where a "higher level of poverty" among women is a state. Microcredit strategy has emerged as a possible alternative and, under the right circumstances, can be a positive spill over feminization of anti-poverty programme. This paper examines how the fundamental idea behind microcredit where women's ability to generate the credit capital will provide the foundation to battle against poverty. In order to make the study more realistic, field level data have been collected from concerned panchayats, blocks and district office following interview method with pre-structured questionnaire, meeting with the women group members and different officials. Field study has been carried out in two blocks of Purba Medinipur district of West Bengal, India. The sample of respondents taken for the study was from 48 Self Help Groups (SHGs) from the two blocks. All these groups received second dose credit from the banks, after successfully repaying the first dose. These groups had started their functioning during 2000- 2003, and have a responsibly successful record.

A brief history of modern microcredit movements are explored, followed by the dominance of the institution's relationship with women. Also the study highlights the efficacy of the self help groups as microfinance institutions in India juxtaposed the efficacy of Bangladesh's instance of Grameen Bank as working against poverty among women. Microcredit helps the poor women to break out from the cycle of poverty through their economic empowerment accelerating the overall development.