Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, or a verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Many recipients are illiterate, and therefore unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million people held microloans that totaled US$38 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent.
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana is an example of a microfinance institution.
Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans to the impoverished without requiring collateral.
Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize in 2006 for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize "for their efforts through microcredit to create economic and social development from below". The Norwegian Nobel Committee said that "lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty" and that "across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development". Yunus has received several other national and international honours. He received the United States Presidential Medal of Freedom in 2009 and the Congressional Gold Medal in 2010.
Self-Employed Women's Association (SEWA), meaning "service" in several Indian languages, is a trade union based in Ahmedabad, India, that promotes the rights of low-income, independently employed female workers. Nearly 2 million workers are members of the Self-Employed Women’s Association across eight states in India. Self-employed women are defined as those who do not have a fixed employer-employee relationship and do not receive a fixed salary and social protection like that of formally-employed workers and therefore have a more precarious income and life. SEWA organises around the goal of full employment in which a woman secures work, income, food, and social security like health care, child care, insurance, pension and shelter. The principles behind accomplishing these goals are struggle and development, meaning negotiating with stakeholders and providing services, respectively.
Ruth Manorama is a Dalit social activist from Bangalore, India who fights for Dalit women's rights, the rights of domestic workers and those in the unorganized labour sector, as well as urban slum dwellers. In 2006, she was awarded the Right Livelihood Award.
In India, a caste is a social group where membership is decided by birth. Castes often have related political preferences. Broadly, Indian castes are divided into the Forward Castes, Other Backward Classes, Scheduled Castes, and Scheduled Tribes; sometimes Indian Christians and Indian Muslims may also function as castes. The reservation system in India essentially acts as affirmative action to provide representation to caste groups that have been systematically disadvantaged.
The status of women in Nepal has varied throughout history. In the early 1990s, like in some other Asian countries, women in Nepal were generally subordinate to men in virtually every aspect of life. Historically, Nepal has been a predominantly patriarchal society where women are generally subordinate to men. Men were considered to be the leader of the family and superior to women. Also, social norms and values were biased in favor of men. This strong bias in favor of sons in society meant that daughters were discriminated against from birth and did not have equal opportunities to achieve all aspects of development. Daughters were deprived of many privileges, including rights, education, healthcare, parental property rights, social status, last rites of dead parents, and were thought to be other's property and liabilities. In the past century, there has been a dramatic positive change in the role and status of women in Nepal, reducing gender inequality. While the 1990 Constitution guaranteed fundamental rights to all citizens without discrimination on the basis of ethnicity, caste, religion, or sex, the modernization of society, along with increased education of the general population, have also played an important role in promoting gender equality. The roles of women have changed in various ways in the modern Nepalese society.
Gender inequality in India refers to health, education, economic and political inequalities between men and women in India. Various international gender inequality indices rank India differently on each of these factors, as well as on a composite basis, and these indices are controversial.
Tiruppur Subrahmanya Avinashilingam Chettiar was an Indian lawyer, politician, freedom-fighter and Gandhian. He served as the Education Minister of Madras Presidency from 1946 to 1949 and was responsible for introducing Tamil as the medium of instruction. He is also credited with having commissioned the creation of the first Tamil encyclopedia.
Microcredit for water supply and sanitation is the application of microcredit to provide loans to small enterprises and households in order to increase access to an improved water source and sanitation in developing countries. While most investments in water supply and sanitation infrastructure are financed by the public sector, investment levels have been insufficient to achieve universal access. Commercial credit to public utilities was limited by low tariffs and insufficient cost-recovery. Microcredits are a complementary or alternative approach to allow the poor to gain access to water supply and sanitation.
The SIDBI foundation for Microcredit (SFMC)
Jaya Arunachalam was an Indian social worker and the founder of Working Women's Forum, a non-governmental organization based in the Indian state of Tamil Nadu, working for the welfare of marginalized women. Starting in 1978, she channeled her activities under the aegis of the forum for organizing poor working women and provided them with seed capital to start their small business or to develop their existing business.
Renana Jhabvala is an Indian social worker based in Ahmedabad, India, who has been active for decades in organising women into organisations and trade unions in India, and has been extensively involved in policy issues relating to poor women and the informal economy. She is best known for her long association with the Self-Employed Women's Association (SEWA), India, and for her writings on issues of women in the informal economy.
Ashif Shaikh is a social activist from India who has worked for ending sexual violence against women and children, eradication of manual scavenging, forced labour practices and human trafficking in India. He is the founder of Rashtriya Garima Abhiyan and the non profit organisation, Jan Sahas.
The impact of microcredit is a subject of much controversy. Proponents state that it reduces poverty through higher employment and higher incomes. This is expected to lead to improved nutrition and improved education of the borrowers' children. Some argue that microcredit empowers women. In the US and Canada, it is argued that microcredit helps recipients to graduate from welfare programs. Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that it fails to empower women, and that it has not improved health or education.
The term 'political participation' has a very wide meaning. It is not only related to 'Right to Vote', but simultaneously relates to participation in: decision-making process, political activism, political consciousness, etc. Women in India participate in voting, run for public offices and political parties at lower levels more than men. Political activism and voting are the strongest areas of women's political participation. To combat gender inequality in politics, the Indian Government has instituted reservations for seats in local governments.
Gender inequality has been improving a lot in Bangladesh, inequalities in areas such as education and employment remain ongoing problems so women have little political freedom. In 2015, Bangladesh was ranked 139 out of 187 countries on the Human Development Index and 47 out 144 countries surveyed on the Gender Inequality Index in 2017. Many of the inequalities are result of extreme poverty and traditional gender norms centred on a patrilineal and patriarchal kinship system in rural areas.
Reema Nanavaty is an Indian developmental worker based in Ahmedabad, India. She has been active for three decades in organising women into co-operative organisations, enterprises and trade unions in India. She is the director of SEWA and is credited for building women's livelihoods and enterprises within eighteen states in India as well as in neighbouring countries such as Afghanistan, Sri Lanka, Nepal and Bhutan.
Social entrepreneurship in South Asia involves business activities that have a social benefit, often for people at the bottom of the pyramid. It is an emerging area of entrepreneurship that is supported by both the public sector and the private sector.
