Right from the 90’s all economic development plans of the successive governments have focussed on poverty eradication but it continues to exist with the same magnitude despite macro economic stability.

Though managers claim of arresting poverty, yet due to the inequalities in resource distribution and opportunities, achievements at the macro economic level are to the advantage of only a privileged few.

Hence the socio-economic status of the less privileged population, and women in particular, has declined further.

Credit is seen as a powerful tool of economic empowerment for the poor. Institutional credit has been made possible through the establishment of micro finance banks both in the public and private sectors.

Further intervention of the notable NGOs and the public sector banks through their micro credit disbursement programme has facilitated induction of the poor in the economic process where these banks could have the accessibility.

It is to be seen how these strategies have worked. Implementation of any such programme must result in reducing the number of poor. There should be less deprivation or these efforts should have been able to remove the barriers and improved the socio-economic lot of the poor.

It is to be established as to what are the parameters visioned by a common man or woman, categorized as poor to ascertain/assess whether he or she and their family are now better off.

Mere assistance for temporary provision of food and clothing is not a step towards getting one out of the tangles of poverty.

The foremost requirement is a gainful employment or earning opportunities for all adult members of a family to ensure:

a) Food availability.

b) Shelter/housing.

c) Access to education.

d) Access to clean drinking water.

e) Proper health facilities. f) Satisfaction on the part of women involved in income generation activity, recognition of their efforts, and their involvement in decision-making.

g) Visible decline in gender-biased attitude of family members.

Here the writer would like to share the findings of one such study conducted by the First Women Bank in collaboration with the Japan International Cooperation Agency (Jica) and the Ministry of Women Development in 1997-98.

The study was initiated to find out the effectiveness of the bank’s micro credit scheme launched in early 1990’s for the economic empowerment of women from low income group.

The targeted clients were women entrepreneurs belonging to the less developed urban and rural areas within the radius of 60km of the bank’s urban branches. The study focussed on:

a) Profile of the borrower.

b) End utility of the bank’s micro credit scheme.

c) Socio-economic impact of the credit scheme.

d) Effectiveness of the scheme in reducing/arresting gender biased attitudes in the families where women have entered into any income generating activity through financing obtained from the bank.

The study had covered targeted clients of only Punjab and Sindh branches where 75 per cent of the loans concentrate and where diversity in profile of the clients and nature of their business is of much significance.

The procedure adopted for systematic random sampling was that 10 per cent of the total number of loanees at each branch of the aforementioned provinces were chosen as samples.

Findings regarding the profile were that the majority living in urban and sub-urban areas were literate, while 86 per cent borrowers from the rural areas never had any access to education.

Similarly, number of illiterate women from Punjab was far less than Sindh. Almost 44 per cent were graduates.

This indicates that education has strong link to women’s access to credit. Around 64 per cent were in the age group of 30 to 39 years.

Around 12 per cent belonged to the families where total monthly income was Rs2000 or less. Accessibility was not a problem as women living in the far-flung areas were facilitated for the delivery of credit through the NGOs.

In 95 per cent cases funds were utilized effectively, while 50 per cent had contracted loans for expanding their businesses and equal number for establishing new businesses.

Regarding the economic impact each loan of Rs25,000 on an average created employment opportunities for three persons. These women were found contributing Rs2,000 to 5,000 to the family income.

Around 40 per cent were able to send their children to school, while 60 per cent were found spending on daily food requirement.

Almost 17 per cent admitted spending part of their earnings on medical treatment to family members. Only 16 per cent were saving 20-30 per cent of their earnings.

Around 2 per cent were able to acquire property with 73 per cent having control over their earnings. Economic empowerment has also impacted the social status of the woman.

They were found more confident, self-esteemed and proud of their achievements.

Findings of this study can be generalized for all area pockets in the country where micro finance banks and the NGOs have enabled women to set up businesses of their own. It can generally be observed both in urban and rural areas that efforts for making women economically empowered and their resultant interaction with people outside their home, has brought them awareness regarding their rights.

They can now boldly combat all odds and exploitations falling their way and promote social harmony in the country.