Abstract
This article examines microfinance as a development strategy designed to empower women and reduce poverty in the Global South. The discussion draws from feminism and development to critically analyze these lending programs in the context of persistent gender inequities and economic marginalization of women. Scholars, policymakers, and practitioners have different perspectives on the effectiveness of microfinance programs. Proponents of microfinance argue that these economic interventions assist in the development of small-scale economic activities, improve gender dynamics in households and communities, and empower women. In contrast, critics describe microfinance as an extension of neoliberal capitalism that exploits rather than empowers participants by increasing their debt burden and other forms of exploitation. The analysis addresses sociospatial and economic aspects of microfinance programs by examining the different approaches as reported in the empirical studies of microfinance programs that target women in the Global South. The discussion focuses on how microfinance impacts and is related to the following dimensions of women’s empowerment: economic empowerment and poverty reduction; investment and consumption; and decision-making and self-esteem. We argue that microfinance programs are embedded in and influence diverse aspects of these economic interventions in the development process. The conclusion summarizes how agency and change associated with these programs offer the potential for women’s empowerment at various scales and within diverse contexts of development.
