Women and Microcredit in Rural Bangladesh: An Anthropological Study of Grameen Bank Lending

201 Pages·2001·17.66 MB·English

by  Aminur Rahman

Women and Microcredit in
Rural Bangladesh
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Women and Microcredit in
Anthropological Study of the
Rhetoric and Realities of
Grameen Bank Lending
Aminur Rahman, Ph.D.
WesWiew Press
A Member of the Perseas Books Group
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Contents
vii
ix
xi
Statement of the Problem, 2
The Grameen B&, 3
The Lending Structure of the Grameen Bank, 5
Shdies af the Grameen B&, 8
Microcmdit in Development Prc?jects, 22
Women in Development and hcorporatim of Miaoaedit, 14
Women in Development: A Bangladesh Context, 17
The Significance of This Study, 19
The Smcbrt; of the Book, 20
2 Field Research Methodology
Bre-Fieldwork Resear& PIm, 2.2
ELiation of Field Research$2 4
The Native as Researcher, and Rapport Building, 28
Data Collec~an3, 1
Resear& Efiics, 34
LimitatiJsns of the Re~mch36~
Enfitlement, Enfranchisement, and Empowerment, 39
Public and Hidden Transcripts, 42
Practice Theory, 44
The Concept of Hegemony 48
4 The Study Village and Its Socioeconomic Organization
The Village Fopulaiion and Its Literacy and Education
Level, 61
Emomic Organizatrion, 62
Grameen Households in the Local Economy 65
Migration in the Village Economy 65
Women and the Village Economy, 67
5 Microlending and Equitable Development
The Public and Hidden Trmscripts for Remi~ng
M70mea 71
Patriarchal Hegemony in the Recruitment of Women
Bomowers, 73
Organization of the Women and Social Collateral, 77
Newor& of Borrowas and Bmk WQS~~83~ S,
The Social Development initiatives of the Bank, 88
6 Disbursement and Recovery of Loans: Bases far
Escalar[i~onf Violence?
Loans in the Study Village, 98
Pxwesshg of Loan Awlicatims, 101
Lam Disbursement, 103
Loan Use an$ Loan Supervision, l05
Loan Repayment Schedule, 117
Escalation of Aggression md Videnccz, 128
7 Microlending and Sustainable Dwelopment
SustaMbiliq md Profitabiliv, 129
fieG rmeen B dan d Giklpiblism, 132
Transaciion Cosh, Ou~acha,n d Sustainability, 135
Consequences of High Loan Disbursement and Loan
Recovery, 138
Spiraling Debt Cycle, 140
The Donor Perspective, 145
8 Cortdusion
Review of the Study 147
fieorel-ical~ mplicilcions1,5 15
Poliq Recammendal;ims, 152
Appendix A: Glossary of Non-English Words 155
Awendix B: TCle Skteen Ilecisions 159
Appendix C: Gramem Bank Bidhimala (Bye-lawslConstitution) 161
References 169
Index 182
Figures
Gramwn B& DisMcts in 1995
The HliermcEcal Sbchre of Crmsrmts Crameexl Bad
Miaolendhg
Growth of the Grmeen Bank, Bangladesh, 19851994
Administrative Units and Villages in Bangladesh
Map of Pas Elashin (The Study Village)
The Hierar&cal Structure of Village Sodal Organization
Household Size in Pas Elash, Bangladesh, 1994-1995
Age Strum= of Population of Pas Elashin,
Bangladeshy1 994-1995
Literacy and Education Level in Pas Elashin,
Bangladesh, 194-1995
Household Agricultural Landholding in Pas Elashin,
Bmgladesh, 194-1995
Grameen Bank Membership Patterns in Bangladesh
(Women and Men), 198S194
"INha Asked Women Bomawers -ti> Join the Grmeen B&
in Pas Elashin, Bangladesh?
Re1a~veso f Women Bomawers InvoXwd wi& the
Grameen Bank in Pas Elashin, Bangladesh, 1994-1995
Types of Approved Loans to Women Bomwers, Pas Elashin,
Bangladesh, May 1997
Projeded md Achad Use of Lo ;t.a Women Bomowers
in Pas Elashin, Bangladesh, 1994-1995
U ~ rofs L oms to 1Vomen in Pas ElasMrr,
Bangladesh 19941995
Ssurces far Funds far InstaXlment Payments on Loans to
Women Borrowers in Pas Elashin, Bangladesh, 1994-1995
Sowces of Znterest and Emergency Fmds for Women
Bomowers in Pas Elashin, Bangladesh, 1994-1995
Perceived Incidences of Verbal Aggression and Physical
Assault in Pas Elash Bangladesh, 19941995
7.1 External Funds and Grants Received by the Grameen Bank,
Bangladesh, 1986-1994 131
7.2 Yearly Loan Disbursement and Loan Recovery in the Study
Brmch, 1991---l994 137
7.3 Eslbwsement sf Qneral md Seasanal Loam Among
Women Borrowers in Pas Elashin, Bangladesh,
19941995 and 1B61997 144
Preface
Microcredit-small amounts of collateral-hee instihtiortal loans ex-
tended to jointly liable p u p m embers for self-employment-was first
introduced by the Grameen Bank of Bangladesh in the mid-1970s. The
altic success of heb mk-~rruibent of climb, hvesment of
loans, recovery rates on invested loans, and profit margn-has intema-
tionalized minocredit. There is a growing sense that micro-lending pro
jects for women have the potential to achieve the goal of equitable
(women's entiitlement to resources) and sustainable (independent stabil-
ity and continuity) development. My study, however, whi& is based on
hirtem months o c field research on Grameen lending to
women in a rural c f Bangladesh, challenges the conventional
understanding o lending and the orthodox view of its
szfccess,
This study consists of an anthropological analysis of women borrow-
ers' involvement with the credit program and implicaiions of the lending
stmcture for women borrowers, their household members, and bank
tvarkers. h &earerc;icd terms women" involvement with ~aocredihta s
been examined in the context of hen ormative entitlements of pahiarchy.
The concepts of public and hidden tr cripts (Sco~19 90) and practice
theory (Bourdieu 1977) are used to prrsent the discrepancies between the
ideology and practices of the lending institution and the infomants. Cul-
tural hegemony (Grmsci 1971) helps to mdyze the ~produaiono f an
ideology of domhnce and violence toward women in society, both un-
intended and orl;anjxa~onal.
The research findings suggest hat women become the primary target
of the microcredit program because of their sociocultural vulnerability,
that is, the requirements of regular attendance by borrowers in weekly
meetings at the loan center and the rigid repayment schedule of loans.
The program extends credit to women, but in the household women
often pass on their loans to men, men take control over women's loans,
or loans are used to meet the emergency consumption needs of the
household. In this system, women borrowers often lose control over their
loans but bear the consequences of the debt burden in their households
md lam caters,