Response Paper for Microfinance

Response Paper 2

            Through our discussions about microfinance, I have realized I cannot escape the importance of women in the growth of developing countries’ economies and the welfare of their people. Somehow, women have proven themselves central to the pulse of communities. Not perhaps, as official leaders, but as the cornerstones which keep the whole community from perishing. If women were absent, I shudder to imagine what would happen. That said, strengthening the women and providing them with infrastructures that enable them to climb even higher will transform these countries beyond recognition. So far, we have seen the success of programs that streamline funding through the women because then the money is invested back into the family and community. My struggle begins with the thought of whether empowerment and whether empowering a woman and teaching her how to further her own business will lead to her abandoning this pattern of investing in the community. And does a focus on women further the cycle because there is no correction of the men’s attitudes towards investing in the community? I have come to believe that there needs to be a combination of the two.

            It was extremely interesting for me to be introduced to the countless microfinance initiatives and models that have found success. Most everyone is familiar with the Grameen Bank model but I had never considered rotating credit or door-to-door savings initiatives. I wrestle with the tension between microsavings and microloans. I wonder whether or not one is possible without the other. Microsavings only work if there is money that is coming in already, which might only be possible as a result of a microloan. However, microloans are also dysfunctional without knowledge of how to save, how to handle one’s money. Again, it strikes me as a necessity for balance between the two; they truly belong hand in hand.

            Another thought that stuck with me was the definition of empowerment and whether than varies between cultures. Coming from an American perspective, empowerment often is taken in the financial context. Empowering a woman here means giving her the resources and desire to make her own decisions and to be self-reliant. However, in other cultures, there are different priorities and empowerment might be defined differently. I would be interested in discovering how some developing countries would define empowerment because I am loathe to fight for freedoms that we assume women need that they do not desire. Furthermore, the question arises of whether empowerment will increase self-interest and lessen the communal investment that is so valued in women right now.

            In my studies of prostitution and sex trafficking, I have found the two to be nearly inseparable. Though I concede that they are defined differently, one being an occupation of sorts and another being illegal enslavement, I have not been convinced that there are many places where one is present without the other. There are people who argue that prostitution is simply selling a service and is equitable with any other commodity in the market. I can set aside personal views in order to understand that argument, even if I do not agree with it. These same people often promote the legalization of prostitution. It is at this point that I must stress how legalizing it in order to give it legitimacy and lessen the stigma actually has ripple effects. Those effects include the impact on sex trafficking and how much more tempting it is to participate in this market because there is much higher profitability, now that brothel keepers do not have to pay police bribes. Though legalizing prostitution may, and only in some cases, actually succeed in dealing with several health concerns, it does not shrink the market. It certainly does not dissuade any brothel owners from participating in illegal trafficking. Prohibiting prostitution puts more pressure on brothel owners and police and the business becomes less profitable. Oftentimes, owners give up the business, thereby shrinking the market. It is a complicated matter but I think these are logical arguments.

            In the context of Nigeria, I sought to understand why women and girls are more vulnerable to be trafficked. Lack of education lessens opportunity and so they are often seeking ways to get a job, even if it means accepting an offer in another country from a seemingly harmless extended family member. Women tend to be less informed about the risks of migration and so they are taken advantage of on the way. Violence against women is culturally more acceptable and, therefore, not as many people will protest if they see anything happen. There has been a popularization of foreign workers in domestic and care-giving roles and so that leaves Nigerian women out of work and looking for funding. Culturally, women and children’s human rights are often discounted and so no one is looking out for their welfare. For all of these reasons, and several others, women and girls are more vulnerable to be trafficked in Nigeria.