Q. Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (150 words, 10 marks)
Why the Question?
UPSC PYQ – CSE Mains – 2021
Keywords of the Question
- Vicious cycle of gender inequality, poverty and malnutrition
- Microfinancing
- Women SHGs
Directive Word
Explain – Clarify a topic by giving a detailed account as to how and why it occurs, or what is meant by the use of this term in a particular context. Your writing should have clarity so that complex procedures or sequences of events can be understood; defining key terms where appropriate, and be substantiated with relevant research.
How to approach this Question?
- Introduction:
- Begin by defining the key terms: gender inequality, poverty, malnutrition, and microfinancing.
- Highlight the interconnectedness of these issues and their impact on women’s well-being.
- Mention that microfinancing of women’s Self-Help Groups (SHGs) can play a crucial role in breaking this cycle.
- Body:
- Discuss how microfinancing of SHGs targets women disproportionately affected by gender inequality, poverty, and malnutrition.
- Provide examples:
- Tamil Nadu Women’s Development Project (Mahalir Thittam)
- Self Employed Women’s Association (SEWA) etc.
- Conclusion:
- Summarize the positive impact of microfinancing on women’s agency, poverty reduction, and improved nutrition.
- Emphasize the potential of SHGs to break the vicious cycle.
Note: Please note that the following ‘answers’ are not ‘model answers’ nor are they synopses in the strictest sense. Instead, they are content designed to meet the demands of the question while providing comprehensive coverage of the topic.
Answer Key
Introduction
Microfinancing involves providing small loans and financial services to low-income individuals or groups. Gender inequality, poverty, and malnutrition are interconnected challenges faced by many women globally. Microfinancing of women SHGs can empower women economically, enhance their agency, and address these issues.
Body
Empowering Women Through Microfinance: Breaking the Poverty Cycle
- Bandhan Bank: A Bond of Opportunity:
- In India, Bandhan Bank emerged as a microfinance institution, primarily serving poor women.
- Operating in rural and semi-urban regions of Eastern and North Eastern India, Bandhan Bank provides small loans (microcredit) to women.
- These microloans empower women to engage in income-generating activities, from small-scale farming to micro-enterprises.
- Families benefit as women contribute financially, invest in education, and access essential healthcare services.
- Tackling Malnutrition: The Mahalir Thittam Approach:
- The Tamil Nadu Women’s Development Project (Mahalir Thittam) exemplifies microfinance’s indirect impact on nutrition.
- The project formed women’s SHGs and provided microcredit for small businesses.
- Alongside microcredit, the program included health and nutrition training sessions.
- Empowered women make informed nutritional choices, addressing malnutrition within their households.
- Economic Empowerment and Beyond:
- Enables women to access credit and financial services.
- Women start or expand income-generating ventures.
- Improved financial status benefits families and children’s education.
- Necessary healthcare services become more accessible.
- Gender Equality and Decision-Making:
- Economically independent women gain decision-making authority.
- Microfinance challenges gender norms.
- Example: SEWA (Self-Employed Women’s Association) empowers women in household and community decisions.
- Education, Healthcare, and Well-Being:
- Increased income leads to investments in education and healthcare.
- Studies show that microfinance participants prioritize education and timely medical care for their families.
- Social Empowerment and Collective Action:
- Women’s Self-Help Groups foster social connections.
- Members share experiences and address issues like gender discrimination and domestic violence.
- Kudumbashree Example: Kerala’s program promotes women’s empowerment through microfinancing.
- Multiplier Effect: Community Transformation:
- Empowered women reinvest income in family well-being.
- The ripple effect improves overall socio-economic conditions.
- Countries targeting women with microfinance witness positive community changes.
Conclusion
Microfinancing of women SHGs is a powerful tool to address gender inequality, alleviate poverty, and improve nutritional outcomes. By scaling up such initiatives and ensuring equitable access, we can create a positive feedback loop where empowered women contribute to healthier families and communities.
Mind Map
