In this ongoing blog series, I have been discussing how the work of Opportunity International Canada contributes to some of the United National Sustainable Development Goals (SDGs). The fifth goal – Gender Equality — is the focus of this blog post.
At a recent event, an attendee asked if Opportunity International helped any men build sustainable livelihoods and provide for their families. The question was understandable, as over 97% of our clients are women, and this attendee knew that men also struggled with poverty.
And the answer is that yes, indeed, we help both men and women with financial inclusion, training, and support. One reason that globally the percentage of women is so high is that in India about 99% of clients are female, and a large number of Indian clients impacts our percentages at a global level. In many other countries where we serve, the ratio is closer to 60% women / 40% men.
There are many reasons why microfinance has tilted toward female clients over the years. In the early days most loans were through Trust Groups, where 10 to 20 women would guarantee the loans of each group member, and in general, women were more attracted to such groups. But over time we have found that as a rule (and there are many notable exceptions), women are a better credit risk and are more likely to invest the proceeds of the microenterprise into the betterment of their families.
However, I suggest there is one overwhelming reason why we focus primarily on female clients. Our goal is to fight poverty and so we hope to work with people that find themselves trapped in cycles of poverty and help them break free through financial inclusion.
Due to systemic and cultural issues, women are often trapped at the bottom of the economic ladder as they are excluded from formal education, financial inclusion, and participation in the workforce. And it is usually women who carry the burden of raising children.
Due to systemic and cultural issues, women are often trapped at the bottom of the economic ladder as they are excluded from formal education, financial inclusion, and participation in the workforce. And it is usually women who carry the burden of raising children.
The logic becomes quite compelling – if we want to make the biggest dent possible in the fight against poverty, we need to focus on facilitating financial inclusion for female clients.
But how does all this contribute towards progress in gender equality? There are many examples.
I was recently talking with a colleague from Uganda. She told me that in most cases, female smallholder farmers could not inherit the land they are working on if their husband dies. Often the land goes back to the husband’s extended family, and the widow and children can find themselves homeless. But she told me of clients within our Agriculture Finance program who have saved enough money from the increase in crop yields to buy land of their own, which provides a more secure future for their family and overcomes this cultural barrier to equality.
I have repeatedly heard of female clients whose husbands were initially resistant to their wives taking a loan for a microenterprise, believing “their place was in the home.” And yet with support and training (often including the husband), women clients persevere and develop viable microenterprises. With increased family income and an elevation of community stature, many husbands have gained a new respect for their wives. (This is not always the case and abusive situations, sadly, continue.)
The most compelling argument for microfinance as a pathway to gender equality is the transformation that takes place within a female client. Many of these clients have innate entrepreneurial skills that have been squelched for cultural reasons or for lack of opportunity. And many are so marginalized that they cannot even dream of owning their own business.
But as they embark on the journey – the adventure – of starting their own microenterprise, with mentoring and support as well as the needed loan, they grow in confidence as they learn to earn a living. This powerful rise in hope and confidence is perhaps the most inspiring change, and the economic improvements are natural outcomes.
But if a sustainable livelihood is a strong pathway toward gender equality for women, quality education is one of the most powerful pathways for girls. As discussed in last week’s blog, the Opportunity International Education Finance program creates educational opportunities for millions of kids.
There are many ways this program is specifically targeted toward keeping girls in school. For example, loans are taken out to build gender-specific bathrooms, providing much-needed privacy. And short-term school fee loans help ensure that girls are not pulled from school during seasons of low income, as is often the case for smallholder farmers.
…empowering female clients through financial inclusion and by creating education opportunities for girls, we can move towards addressing this goal — one woman and one girl at a time.
There are many systemic and cultural barriers to gender equality, and I don’t pretend that the power of microfinance can singlehandedly solve them all. But by empowering female clients through financial inclusion and by creating education opportunities for girls, we can move towards addressing this goal — one woman and one girl at a time.
Dan Murray, CEO