The Micro-Finance Scheme in Saudi Arabia - Assignment Example

MAIN RESEARCH QUESTIONS: Question 1) Does micro-finance impact gender relations (in the household) in the Kingdom of Saudi Arabia? Question 2: (Short version) 2/a) What effects does having access to micro-financial resources in Saudi Arabia have on women’s survival, security and autonomy? Detailed version: 2/b) What effects (positive and negative) does having access to micro-financial resources in Saudi Arabia have on the well-being of the family survival, security’ and financial self-sufficiency/self-reliance, but also personal security (self-confidence and self-esteem/fall back position). Autonomy on various levels (by this I mean: financial independence (these women have the ability to have control over their generated income), and autonomy of choice in decision-making “not as an individualistic body of free choice (Kabeer, 1994)” but rather their ability to participate in the decisions that affect their lives at a personal level, which reflects the ‘power to’ that emerges from the concept of empowerment1. (Would it be fitting in the context of Saudi to include the collective level as well (I feel that it could be too big a stretch and ideological. What do you think?) OBJECTIVES OF THE STUDY: The main objective of this study is to analyze the micro-finance scheme in Saudi Arabia (BRJ) and examine its rationale, assumptions, agenda and implications on: a) gender relations in the household of women loanees b) women’s personal empowerment in both rural and urban areas in the kingdom. This concept of empowerment is an overarching theme that occurs on many levels: 1) In a general sense, whether women clients have become economically and socially empowered due to the support extended by the micro-finance organization. 2) More specifically, I plan to explore and assess the implications of having access to micro-finance on (control over resources, mobility, decision-making, bargaining power in the household) and socio-economic empowerment (self-confidence, self-esteem) of women clients. To highlight both the positive and negative aspects of micro-finance in the context of Saudi Arabia. A positive aspect, for example, would be for the women to become self-reliant or to have the ability to make major decisions about investments relating to their children’s future. Where as negative aspects could mean that the women would have to work longer hours or suffer an increase in domestic violence, etc. Examine how effective micro-finance can be in tackling the issue of high unemployment rates for women in Saudi. So to investigate whether micro-finance is one of the best solutions? If yes/no, then why? To study the characteristics of BRJ micro-finance beneficiaries by using their demographic and micro-finance profile (age, literacy, family size and type, occupation, loan size, enterprise, income, consumption, savings, etc.), and analyze how micro-finance services has impacted the well-being (investment in children education, health status, and nutritional intake) of the client’s family. This, I believe, is necessary in creating a case for micro-finance in the kingdom. To my knowledge there is no documented profile for these recipients as of yet. This will prove essential when I try to examine the before and after impacts on the women and their household. Finally, to analyze the factors that effect or produce gendered inequalities and/or women’s empowerment through micro-finance (e.g. social and structural impediments, if any) looking specifically at the role of agency versus structure (in the household) in the context of Saudi Arabia. Edit file 4 section 1 end HYPOTHESIS OF THE STUDY 1) Having access to micro-financial resources from BRJ will not necessarily lead the impoverished women clients to become self-reliant and economically independent, due to BRJ’s ‘gender blind’ policies and the neglected effects of gendered inequalities in the household and the ‘double burden role’ add foot not double not triple these women have to endure in their daily lives (this will more often than not result in having low bargaining and decision-making power and low control over income). So, in other words: Having the ability to control economic resources (generated income) and having decision- making power is necessary in order to challenge the gendered inequalities (at least at the household level) that women are faced with in their daily lives, and in order to facilitate their empowerment at both the economic and socio-economic levels. To further clarify, even though these women are given the opportunity to work, if there are restrictions that do not allow them to take advantage of an opportunity made available to them, or if they are allowed, and they are able to exploit the opportunity, but there are restrictions (stemming from gendered inequalities) that effect, where and how that generated income should be spent, will thus not empower them. In other words, Saudi women are doubly disadvantaged by the lack of opportunity to acquire means due to institutionalized gender inequalities, sexual division in the labor-force and in the domestic sphere, and not having the requisite empowerment to lead a life of choices. Having access to micro-financial resources through from (BRJ) will: a) In fewer cases than most, have a positive effect on women’s bargaining power, decision-making ability, and power relations in the household. (I have not included gendered inequalities per se because I am assuming they are naturalized and internalized in most cases (in Saudi) that they may go unnoticed. However, it is an interesting area to investigate.) b) In most cases, have enhanced household income that has improved the well-being of the client’s family. c) In fewer cases than most, have increased the economic/social empowerment2 of the female clients. BREAKING DOWN THE RESEARCH QUESTIONS: (HOW CAN I OPERATIONALIZE THE QUESTIONS?) GUIDING QUESTIONS3: BRJ: 1. What does it mean to establish a micro-finance programme for women in Saudi Arabia? What does it mean for both the borrowers and the lenders (on a discursive level)? What does it signify? What are the gender assumptions? The implications? The expectations of such a programme? 2. What are the ideologies in Saudi in terms of gender/power relations or lack thereof? 3. *What are BRJ’s goals? Are they aligned with the goals that the recipients (women and men) have or expect from this initiative? 4. *Who is being specifically targeted by the BRJ initiative? Is the targeted group being defined in generic or abstract terms, gender specific or gender inclusive, as individuals or as household units? Are they being conceptualized as producers, consumers, victims, clients, participant, or beneficiaries? 5. Whose needs and potentials are being addressed? Who has identified and prioritized them, and, consequently, who designed the implementation strategies? HOUSEHOLD: Gender relations, bargaining /decision-making power 1. Does accessing the informal economy give these women power to renegotiate domestic roles? What dictates that for these clients in the context of Saudi Arabia? 2. How is the women’s access to the informal labour market through micro-finance affecting the power relations and the bargaining power within the family/household? 3. What assumptions have BRJ made about gender division of resources and responsibilities? What evidence is there to show that these assumptions are well-informed? 4. What is the nature and scope of the resources that are being made available through BRJ’s micro-finance scheme? Who is likely to have access and control over these resources? 5. Is BRJ just wanting to keep its focus on income generation or would they consider adopting their vision and policies to take into account women’s practical and strategic gender needs than can facilitate their socio-economic empowerment? 6. Does BRJ have the potential to address women’s ‘strategic’ gender interest? What kind of resistances are they likely to face and how can they deal with them? 7. Is their access to the informal economy an act of resistance or are they being denied choice because there aren’t any other alternatives? 8. What are the factors that promote/hinder bargaining/decision-making power in the household? 9. How does a) human agency and b) being a financial contributor affect women’s ability to exercise their mobility, decision-making and bargaining power (with the institutionalized/internalized/naturalized structural constraints in the household)? 10. Do these women recipients take part in the micro-finance programme to secure an exit option or “fall back position (Kabeer, 1994) or as an act of resistance to the gendered inequalities they are challenged with in their everyday lives? Empowerment: What does “empowerment” mean to the borrowers and the lenders and how do they feel about attaining it or not? What are there structural impediments that hinder the empowerment of women despite having access to micro-financial resources? What are they (if any)? (WHAT DO I HOPE TO ACHIEVE?) ANTICIPATED RESEARCH OUTCOMES (dear supervisors: I feel that this could be too ambitious so I have grayed out the outcomes of which are secondary in importance: kindly comment if you disagree on each separately) The anticipated outcomes expected at the conclusion of this research are the following: Examining the BRJ micro-finance scheme in Saudi Arabia (and providing comparisons between the impact of micro-finance on both4 female and male recipients in Saudi Arabia in terms of their economic independence (self-sufficiency) and/or any perceived differences they experience personally. Significantly high unemployment rates amongst Saudi women is the main reason for launching the BRJ initiative. This study will provide a critical analysis of the initiative and highlight its challenges, as well as examine how effective micro-finance has been or can be in tackling unemployment. The possibility of a comparison between BRJ in Saudi Arabia and BRJ initiatives in neighbouring countries5. Creating awareness about micro-finance in Saudi Arabia and highlighting the effects - both positive and negative - it has on gender relations in the household and women’s empowerment (mainly in the household, but also in the wider social context). Providing analyses of intra-household relationships as they are impacted by micro-finance, looking specifically at family dynamics/power relations, bargaining power, decision-making, and mobility. (Dis)proving the theory that micro-finance is a tool to facilitate women’s socio/economic empowerment in Saudi Arabia. Examining and highlighting the potential factors that hinder or promote women’s empowerment. The micro-finance scheme in Saudi Arabia is quite unique from those in other locations, and I believe it is worth highlighting its unique aspects and cultural-specificity, and documenting its operation, whereby filling a gap in the literature and adding a lacking dimension to the debates surrounding micro-finance and its impact on gender relations. Finally, to provide recommendations as a way to move forward, both in theory and in practice. One way could be to propose a series ‘Gender aware: Gender redistributive policies’ that intends to transform existing gender relations to create a more balanced relationship, working on practical gender needs in a transformational way, as well as address strategic gender needs using Kabeer’s social relations framework. Policies that would aim to reduce the vulnerability of Saudi female clients and maximize the value of micro-loans for both borrowers and lenders. WORKING DEFINITIONS: EMPOWERMENT: (working definition, assumptions, hypothesis) The working definition for the purpose of this study: Women’s empowerment resulting from access to micro-finance through the BRJ initiative, by which brings change into their lives by challenging existing power relations and enabling them to become economically self-sufficient/reliant and to be able to take control over their generated income and have the ability to make decisions independently. QUESTIONNAIRE OVERVIEW: The questionnaire will be divided into five sections: Socio-demographic Information, Micro-Finance information, family well-being, economic empowerment, and personal development. First and foremost, I will provide a macro level rationale for the questionnaire and then go on to demonstrate (on a micro level) how each section is closely related, which will help shed light and answer my research questions . This questionnaire is structured to capture and collect data that will be necessary to create parameters for this study, and for creating a case study in itself. The data I am proposing to gather is, to my knowledge, non-existent at the moment. It is crucial to be able to asses the overall impact the BRJ initiative has on family well-being, economic development, and personal empowerment. Section 1: The Socio-Demographic Characteristics of the respondents are important in analyzing in the social sciences research because they serve as a clear and thorough understanding of the subject area (Amir, 2009). This section will enable me to create a micro-finance profile (age, literacy, gender, family size and type, occupation, loan size, enterprise, income, consumption, savings, etc.), which will be useful when trying to create more structured, gender-aware, well-informed policies. By having a clear picture of who is being targeted and how they are impacted by the intervention, we can hope to design policies that target their specific needs and not fall into the trap of reductionist practices and methods seen mainly in relation to gender issues in development (Kabeer, 1994). Section 2: Micro-Finance information: This section has many benefits: Firstly, it will enable me to quantify the nature, scope, and purpose of the loan, as well as the additional services (training) that the recipients are receiving. It will also allow for an in-depth look into how much of the generated income is being saved and where it is being consumed. This information is necessary in order to be able to look at consumption patterns that might be related or restricted by power relations and gendered inequalities within the household. Section 3: Economic Empowerment: Economic empowerment in this study will be measured and evaluated in terms of women’s access to and control over loans and earned income. Also, in terms of the impact that micro-finance may have on the recipients’ decision-making, bargaining power, and mobility. This section will enable me to examine these issues and address the following assumptions: 1) Control over income generated: if a women does have control over generated income, she will become economically empowered. 2) Bargaining power: having access to micro-finance and participation in income-generating activities will, in fewer cases than most, strengthen the women’s bargaining position within the household, therefore allowing her to influence more key decisions. “Women’s ‘perceived contribution’ is an important factor affecting women’s bargaining power in the household (Kabeer, 1994).” Martha Nusbaum notes that family members will allocate opportunities and goods according to their perceived contributions rather than their real contributions (Nusbaum, 2000). This section also address market access, which I assume that even though women who have increased access to the market for productive purposes will not necessarily result in less dependency on men for mobility. Saudi is a male-dominated society and one governed by Sharee’a Law, which restricts women from leaving their house with out the permission of a male ‘mahram’ or guardian. I don’t necessarily anticipate a positive change in this regard. I am interested to find out how these women mobilize or bargain to increase their mobility. Section 4: Personal Development: This section will help analyze the impact of micro-finance on personal and social empowerment. It will uncover how and how many changes (if any) have occurred in their perceived personal empowerment, looking at issues such as perceived self-confidence, self-esteem, and perceived respect from family and community members. Section 5: Family well-being: This section will allow me to analyze how micro-finance services has impacted the well-being (investment in children education, health status, and nutritional intake) of the client’s family. My assumption regarding family well-being is that with BRJ targeting poor women, micro-finance is expected to have a significant positive effect on the well-being of the poor household. Well-being is defined as the state of a family in a given society where their basic needs are met, and they are satisfied with their life (Copestake, 2007). Family is defined as consisting of mainly the mother and children (where this applies). Attach questionnaire here This questionnaire was inspired by a study done in Pakistan in 2009, titled “Micro-finance and women empowerment in Pakistan: A case study of Kwendo Kor, by Salma Amir. Some of the questions where generally guided by her study, while other questions were drawn from it. Edit file 4 section 3 ends Bibliography Amir, S. (2009). Micro-finance and women empowerment in Pakistan: A case study of Kwendo Kor. London. p41. Copestake, J. (2007). Is well-being relevant to international development policy and practice? United Kingdom: Centre for Development Studies, University of Bath. Kabeer, N. (1994). Reversed realities: Gender hierarchies in development thought. New York: Verso. p110. Nusbaum, M. (2000). Women and human development: The capabilities approach. New York: Cambridge University Press. p286. Read More