Micro-Credit Lending to Women - Research Proposal Example

Research Proposal on Micro-credit Lending to Women Research Questions: This proponent intends to research on micro-credit lending as an instrument for women empowerment in Saudi Arabia. Saudi women, because of their gender, are effectively rendered powerless to secure the economic resources they need to attain self-sufficiency. To attain this objective, the research shall attempt to answer the following questions: 1. How is the micro-credit program for women presently implemented, in terms of: a. Selection of recipients b. Dispensation of funds c. Collection of dues 2. How is the woman treated by the husband and/or the community with regard to her attempts to attain economic empowerment and self-sufficiency? 3. What bearing does the woman’s marital status (e.g., single mother), or the economic status of her husband, in expectations of her in her management of the family’s household expenses? 4. What impact did the availability of micro-credit financing have on the woman-recipient’s children, in terms of: a. Availing of a better quality of education b. Likelihood of attaining success as adults c. Enjoyment of a better home environment for stability and growth 5. Would a full-scale implementation of micro-credit financing for women in the Kingdom be a viable alternative, and what would be the requisites to ensure the maximum benefit to the recipients were such a program to be adopted? 6. What recommendations may be considered to ensure the success of a micro-credit financing for women in the Kingdom of Saudi Arabia? Research Methods In attaining the research objective, the researcher proposes to employ both quantitative and qualitative data analysis. Primary qualitative data shall be sourced through interviews conducted among past and current recipients of micro-credit financing, as well as officers and staff of the micro-credit institution. Primary quantitative data shall be drawn through a survey of past and present recipients of micro-credit financing. Secondary quantitative data shall be sourced from statistics available in the records of the Abdul Latif Jameel Community Service Programs (ALJCSP), as well as other such institutions that may agree to participate in the study, if any. Secondary qualitative data shall be taken in the form of case studies, to be culled from diverse cases selected for their the socio-economic perspectives they provide on the short-term and long-term impacts on the women and their families. The use of both qualitative and quantitative data analysis are appropriate, to create a more comprehensive picture of the status of the women-recipients and the effectivity of the program. The respondents shall come from the program recipients and employees of Abdul Latif Jameel Group (ALJ), the largest privately owned company in Saudi Arabia and the largest independent distributor of Lexus and Toyota cars in the world. The company has been a partner of Grameen bank in the Middle East for more than 5 years. The data from this initiative by ALJ and Grameen in Saudi Arabia specifically would prove invaluable for its documentation of cases of micro-credit recipients. The researcher expects to be allowed access to ALJ data, and permitted to publish very important works that otherwise will be limited to a very select few, by virtue of her husband’s position as Managing Director at ALJ and his position on the Board of Trustees of ALJCSP. Relevant Literature There is another study conducted in Cairo that related microcredit and the social-wellbeing of women and their families. Nader (2008) confirmed that microcredit is highly correlated with the quality of children’s education, income and assets, but disproved studies that microcredit availability improved health and harmony in the family. In a related study pertaining to Kenya, Johnson (2004) studied gender-related norms determining access to financial services, and concluded that microfinance programs targeted at women may inherently contradict itself because it makes instrumental use of their gendered subordination. These update a much earlier study by Berger (1989) which found at best contestable results of micro-credit to women as an effective tool for the alleviation of poverty. In Malawi, Swaminathan, Du Bois and Findeis (2009) assessed the impact of gendered access to credit on labor allocation patterns within the household. It concluded that the impact of access to credit is dependent upon the gender of the recipient and upon whether it involves formal or informal credit. Another study on rural Malawi conducted by Hazarika & Sarangi (2008) dealt with the effect of microcredit on child work and welfare, with child work incidences being enhanced by increased credit. Similarly Fletschner (2009) examined the effect of women’s access to credit in a rural setting, on intra-household dynamic, and found that (a) compared to men, women are more likely to be credit constrained; (b) women’s rationing status responds to a different set of factors than men’s; and (c) husbands may choose not to intermediate capital to their wives even when they are able to do so. The outreach and impact of two microfinance programs in Thailand was evaluated by Coleman (2006), yielding findings that the wealthier villages are significantly more likely to participate in these programs than the poor, and wealthier committee members borrow more than the poorer rank-and-file. The programs positively affected household welfare for the wealthier committee members, but the same programs had no discernible impact on the rank-and-file. In the case of Ecuador and Honduras, Smith (2002) determined that microcredit institutions that bundle credit with health programs may produce net benefits, but empirical data indicate that health practices do not automatically improve with greater wealth. The impact of microcredit to women on their empowerment and household vulnerability was examined by Garikipati (2008) in the context of Indian society. The study found that loans procured by women are often diverted into enhancing household’s assets and incomes. This, combined with women’s lack of co-ownership of family’s productive assets, results in her disempowerment. Along the same vein, two studies from Bangladesh offer insights into women’s access to microcredit and their social disposition. Kabeer (2001) noted the conflicting conclusions on microcredit and gender issues in Bangladesh, attributing such to a basic misunderstanding of intrahousehold power relations on which the studies draw. This reprises an earlier study by Schuler, Hashemi, Riley & Akhter (1996) that concluded that credit programs can reduce men’s violence against women by making women’s lives more public, but the deeply rooted origins of men’s violence against women would require much more interventions than merely economic access in order to significantly undermine it. Two other studies on micro-credit in Bangladesh further embody various issues affecting the contradictory findings: Amin, Rai & Topa (2003), and Evans, Adams, Mohammed & Norris (1999). In a study conducted by Anderson and Locker (2002), the impact of micro-credit on changes in household production and consumption, the focus on women, and social capital created shows an enhancement of social and human capital and improved environment awareness. This supports an earlier study by Panjaitan-Drioadisuryo & Cloud (1999) that investigated the results of microcredit programs. They found out that such credit tends to increase women’s participation in decision making, reduce fertility, improve household nutrition substantially, and raise aspirations for children’s education. Prugle & Tinker (1999) present the cases of the Self-Employed Women’s Association of India and the West Yorkshire Group of Great Britain, in portraying examples of successful organizations which support home-based workers by combining microenterprise development and union organizing. Significance of Research The proposed research is important to explore the possibility that financial independence will allow for women empowerment. It is important for succeeding generations of Saudi children, girls and boys alike, to see their mothers and aunts as strong, inspirational role models. Boys will grow to become men who appreciate and cherish their partners and sisters, while girls will tend to aspire to emulate their seniors, thus creating a paradigm shift from the prevailing realities. Upon its conclusion, the research hopes to make a major contribution in the following ways: 1. It shall have been the first to document the microcredit-loans operation in full, in the sense that is shall conduct firsthand research and compile fresh information concerning microcredit loans in Saudi Arabia, both private and public. 2. It shall have created awareness about the microcredit-loan system in Saudi Arabia and the effects it has on the country’s socio and political economy, both in the short term and the long term perspectives. 3. It shall provide fresh insight, both to satisfy the personal interest of the researcher and to supplement existing academic literature, on the effectiveness of micro-credit financing as a tool for women empowerment. Outcomes At the end of the research, the study shall produce evidence to either confirm, disprove, or qualify the theory that micro-credit can empower women and significantly improve their family’s economic welfare. The discussion shall also explore links with such issues as the exploitation of women, patriarchal religions, adherence to Islamic law, secular feminism, and the relationship between capitalism and Islamic law. (Wordcount = 1,453 excluding title) Preliminary Table of Contents Title page Abstract Foreword/Acknowledgement Table of contents List of tables/ List of figures Chapter 1: Introduction Background of the study Research objectives Research questions Hypothesis Significance of the study Chapter 2: Review of related literature Chapter 3: Methodology Research design Research strategy Data gathering instruments Data analysis techniques Conceptual framework Chapter 4: Discussion Chapter 5: Conclusion and recommendations Preliminary Bibliography Amin, S; Rai, A S; & Topa, G 2003 Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh. Journal of Development Economics, vol. 70, pp. 59-82 Berger, M 1989 Giving Women Credit: The Strengths and Limitations of Credit as a Tool for Alleviating Poverty. World Development, vol. 17, no. 7, pp. 1017-1032 Anderson, C L & Locker, L 2002 Microcredit, Social Capital, and Common Pool Resources. World Development, vol. 30, no. 1, pp. 95-105 Coleman, B E 2006 Microfinance in Northeast Thailand: Who Benefits and How Much? World Development, vol. 34, no. 9, pp. 1612-1638 Evans, T G; Adams, A M; Mohammed, R; & Norris, A H 1999 Demystifying Nonparticipation in Microcredit: A Population-Based Analysis. World Development, vol. 27, no. 2, pp. 419-430 Fletschner, D 2009 Rural Women’s Access to Credit: Market Imperfections and Intrahousehold Dynamics. World Development, vol. 37, no. 3, pp. 618-631 Garikipati, S 2008 The Impact of Lending to Women on Household Vulnerability and Women’s Empowerment: Evidence from India. World Development, vol. 36, no. 12, pp. 2620-2642 Hazarika, G & Sarangi, S 2008 Household Access to Microcredit and Child Work in Rural Malawi, vol. 36, no. 5, pp 843-859 Johnson, S 2004 Gender Norms in Financial Markets: Evidence from Kenya. World Development, vol. 32, no. 8, pp. 1355-1374 Kabeer, N 2001 Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh. World Development, Vol. 29, no. 1, pp. 63-84 Nader, Y F 2008 Microcredit and the socio-economic wellbeing of women and their families in Cairo. The Journal of Socio-Economics, vol. 37 pp. 644-656 Panjaitan-Drioadisuryo, R D M & Cloud, K 1999 Gender, self-employment and microcredit programs: An Indonesian case study. The Quarterly Review of Economics and Finance, vol. 39, pp. 769-779. Prugl, E & Tinker, I 1997 Microentrepreneurs & Homeworkers: Convergent Categories. World Development, vol. 25, no. 9, pp. 1471-1482 Schuler, S R; Hashemi, S M; Riley, A P; & Akhter, S 1996 Credit Programs, Patriarchy, and Men’s Violence Against Women in Rural Bangladesh. Social Science Med., vol. 43, no. 12, pp. 1729-1742 Smith, S C 2002 Village Banking and Maternal and Child Health: Evidence from Ecuador and Honduras. World Development, vol. 30, no. 4, pp. 707-723 Swaminathan, H; Du Bois, R S; and Findeis, J L 2009 Impact of Access to Credit on Labor Allocation Patterns in Malawi. World Development, doi:10.1016/j.worlddev.2009.11.002 Read More