Community Development - Research Paper Example

A Case Study of Community Development and Women Empowerment through Grameen Bank The purpose of the current study is to examine the community development experience of Grameen Bank in Bangladesh and the bank’s approach to empowering women. In regards to community development, the study will consider whether there are educational, health and nutrition initiatives that can be credited to the activities of the bank. In terms of women empowerment, women borrowers’ will be examined for improved familial decision-making and engagement in income generating activities. The study will take the design of a survey research. Seventy participants from Bogra village in Bangladesh will be interviewed. Data collection methods will include questionnaires and interviews. It is hypothesized that there are visible community development projects in Bangladesh that can be credited to the efforts of Grameen Bank. Additionally, it is hypothesized that there are women who have improved their lives due to empowerment by Grameen Bank. The outcome of this study will have implications on community development workers and agencies (Osmani 695). 1.0 Introduction Since its inception in 1983, Grameen Bank has used an unconventional mode of lending different from other banks by eliminating the need for collateral. The bank has replaced the need for collateral with accountability, mutual trust, supervision, creativity, and participation. The emphasis of the bank is on education and economic empowerment of the poor people who live in the rural areas of Bangladesh. The objective of this study is to document the experience of Grameen Bank in community development and women empowerment in Bangladesh (Mahmud 49). The study will explore the following three questions: 1. What are the community development projects that Grameen Bank has initiated in Bangladesh? 2. Has the role of women in decision-making and in income-generating activities changed due to credit from Grameen Bank? 3. What supports can Grameen Bank give to its women borrowers to enhance the effectiveness of their empowerment? 1.1. Statement of the problem The problems of poverty and women oppression are concerns shared worldwide and different groups and institutions address them in unique ways. Grameen Bank approaches community development and women empowerment from the rural parts of Bangladesh using collateral-free lending. Studies have expressed their admiration for Grameen Bank’s approach to these two concerns. However, prior studies do not provide alternatives to how the bank can ensure that all women remain empowered and that they are not overshadowed by patriarchy and male domination and this is a gap that this study will seek to fill (Mahmud 48). 1.2. Background: Grameen Bank Grammeen Bank started in 1983 from Professor Muhammad Yunus’ idea of providing capital to the poor in Jobra village in Bangladesh. The sight of the poor population of Bangladesh suffering triggered the idea especially in the incidence of the adverse weather conditions of the country (Osmani 696). Famine and poor housing were some of the things that led to the creation of Grameen Bank. Yunus observed that the poor were not inherently poor but that they only needed capital. He believed that the poor has a capacity to invest and emancipate or contribute meaningfully to their emancipation. The bank eliminated the need for collateral and in its place it required responsibility from the borrower in spending the money on starting income generating initiatives (Amin et al 59). 1.2 Rationale of the study Existing literature applauds Grameen Bank for its community development initiatives that especially target the empowerment of women. It is desirable that there are many income generating activities, schools and other projects that have been set up towards this end. The fact that 53% Grameen Bank women borrowers have been empowered and have secured a voice in decision-making and community activities is also encouraging (Schreiner 357). Even so, 47% Grameen Bank women borrowers have continued to experience domestic violence from their husbands. As such, alongside documenting the community development initiatives that have been started by Grameen Bank in Bangladesh and looking at how the Bank has empowered women, the study will consider the supports that the bank can give to its women borrowers in order to make its empowerment more effective and robust (Abdur 18). 2.0. Literature Review 2.1. Grameen Bank Philosophy Grameen Bank seeks to improve the wellbeing of the poor and empower them in their communities. 2.2. Principles Its founder Yunus articulated the three principles of Grameen Bank. These principles are: Poverty is not a creation of the poor but is also contributed to by the institutions of the society and policies. Loans provide people with a chance to start business or agricultural initiatives which give them earnings that they can use to clear their debts. It is not the lack of skills that make people poor. In fact, poor people have skills that remain under-utilized and unutilized. Charity does not alleviate poverty but it creates dependency and deprives people of the chance to take deliberate effort to break away from poverty. The solution to poverty lies in the utilization of energy and creativity that is resident in every human being. 2.3. Sixteen Decisions Sixteen Decisions are a strategy that the bank uses in instilling responsibility in its borrowers especially women. Grameen Sixteen Decisions are statements that carry environmental, economic, and socio-civic messages. The decisions are: (Mahmud 48) 1. We shall follow and advance the four principles of the Grameen Bank - Discipline, Unity, Courage and Hard work - in all walks of our lives. 2. Prosperity we shall bring to our families. 3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest. 4. We shall grow vegetables all year round. We shall eat plenty of them and sell the surplus. 5. During the plantation seasons, we shall plant as many seedlings as possible. 6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health. 7. We shall educate our children and ensure that they can earn to pay for their education. 8. We shall always keep our children and the environment clean. 9. We shall build and use pit-latrines. 10. We shall drink water from tube wells. If it is not available, we shall boil water or use alum. 11. We shall not take any dowry at our sons weddings; neither shall we give any dowry at our daughters’ wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage. 12. We shall not inflict any injustice on anyone; neither shall we allow anyone to do so. 13. We shall collectively undertake bigger investments for higher incomes. 14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her. 15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline. 16. We shall take part in all social activities collectively 2.4. Group lending The group lending of Grameen Bank starts with a bank unit manager and workers visiting a village and identifying prospective customers. The customers are informed about the purpose, functions, and mode of operation of the bank among the local people. Groups of five are then composed based on customers’ volition (Isserles 38). The bank gives loan to only two of the five group members and observes whether the group is obeying the rules of the bank. The full repayment of the principal and the calculated interest opens the way for other group members to qualify and apply for loans. The group pressure is what establishes responsibility in individual group members. As such, the collective responsibility of the group becomes the collateral (Hasan 112). 2.5.0. Development initiatives that have come up through the activities of the bank 2.5.1. Integrated Fish and Livestock Development for the Poor In 1986, the Bangladeshi government leased government-owned fishponds to Grameen Bank and the started the Grameen Motsho o Poshushampad Foundation (GMPF). This foundation was entrusted with the farm management of livestock and fisheries. Through this foundation, Grameen Bank gave these fish ponds to poor households and the landless (Mallick 154). Additionally, GMPF provided these community members with technical support and other material things including fishing nets, feed, hatcheries, and hatchlings and marketed the produce. Through the GMPF, fish production has increased from 47 tons in 1985 through to over 1,900 in 2013. Each participating households now earns more than $300 dollars from the initiative. Alongside fish keeping, GMPF introduced dairy cattle, started a milk processing plant, and marketed the milk. Besides cows, GMPF introduced Bangladeshi rural people to the rearing of sheep, goats, and beef cattle. Fishing provides seasonal employment and is complemented by livestock rearing (Rouf 60). Women are largely the ones who lead these initiatives. The sustainability of the fisheries and livestock initiative is dependent on technological innovation that helps in the management of inputs. Social innovation is also important and this entails the organization of the poor households that live near the ponds and involving them in the management of these ponds for their own development. Lastly, the demand of dairy products and other foods such as foods by the urban and peri-urban areas is the other thing that enhances the sustainability this project (Alexander 287). 2.5.2. Comprehensive health insurance for the rural poor for a $2 annual premium Through Grameen Kalyan (GK), a not-for-profit organization owned by Grameen Bank, the bank operates a unique healthcare program. GK operates in 12 out of the 35 districts in rural Bangladesh. It operates through a special arrangement that requires Grameen borrowers to remit a premium of $2 every year and in return, GK sends qualified medical doctors and trained technical staff to administer preventive and clinical health services. Besides the premium, Grameen borrowers pay other expenses such as consultation, laboratory test fees and buy medicine but subsidized costs (Isserles 38). In 2007, there were 321, 000 patients receiving care through this program and the number has now grown to more than half a million. Women have come to benefit from the services that have been added recently to the program including gynecological, pre-natal and antenatal care services. The program is 90% sustainable with the microfinance operation of Grameen Bank and it comes across as a comprehensive healthcare program. However, data shows that there is high employee turnover and GK has the challenge of retaining medical practitioners who are willing to stay in the rural areas (Isserles 39). 2.5.3. Provision of Nutrition to the Rural Poor In 2006, Grameen Bank, through four of its not-for-profit enterprises entered into a partnership with Danone Group to form Grameen Danone Food Limited with the aim of proving nutrition to the malnourished children of rural Bangladeshi residents. This was through a fifty-fifty contribution that brought together an equity fund of $1.15 million. Danone provided engineers and helped set up a small dairy plant in Bogra for producing fortified yogurt. Grameen women borrowers were invited to participate. They received microcredit from Grameen Bank and raised dairy cattle and sold their milk to the dairy plant for processing into yogurt. Community members, mostly women, are the ones who are recruited to sell the yogurt to families that have malnourished children (Rouf 60). Unlike what happens with other dairy plants that get milk from the local community but sell its products to the urban market, Grameen Danone Limited sells its yogurt at prices that the local rural communities can afford. Price unpredictable price changes of dairy products remains a challenge to the sustainability of this program (Hasan 112). 2.5.4. Providing Education to children from rural families Grameen Shikkha (GS) was established in 1997 as a not-for-profit organization dedicated to the promotion of education of rural poor children through scholarships. Grameen Bank branches, located in different parts of the country, help profile educational institutions and identify needy children. Funds are mobilized from well-wisher individuals and institutions. In the present day, Grameen Shikkha provides scholarships to more than 2,000 students yearly. Childhood development programs and early education are incorporated into the program. There is also parenting education that has become very helpful to women in enhancing their child rearing skills. Village Development Committees help in selecting community who can receive training in order to impart that knowledge on the parents through the parenting education program (Osmani 695). 2.5.5. Segmented Marketing for Healthcare Grameen Eye Hospital is a social business owned by Grameen Bank that aims provides eye care at affordable care. The hospital uses differential pricing policy where the rich are charged more in order to cater for the health care needs of the poor. More than 500 patients are treated daily at Grameen Eye Hospital. An advantage with this hospital is that it has a cap on its profit-taking and this allows the shareholders, most of whom are women, to re-invest the bulk of the profits back into the program for expansion. Inaccessibility is an impediment to the sustainability of this project but the government is expressing willingness to revamp the roads (Mahmud 49). 3.0. Research Methodology 3.1. Population and Sample Grameen borrowers from rural districts will be the target population of this study. Bogra will be the district of interest for this study. Random sampling will be used to recruit participants. This will allow equal chances for any Grameen borrower to be selected for the study. The sampling will also help provide diverse perceptions and varying opinions of the roles Grameen Bank has played in development. All Grameen Bank borrowers will be eligible for inclusion. The study will use a sample size of 70 participants (Isserles 38). 3.2. Research design The present study will use a survey research design seeking to provide a detailed descriptive account of Grameen Bank’s experience in community development and women empowerment in Bangladesh. It is suitable to use a survey research design in this study because the case of Grameen Bank is unique and even if other initiatives have been modeled on it, it remains an exemplar case. The uniqueness of Grameen Bank derives from its unconventional microcredit lending and involvement in what the initiatives in which the borrowers invest the loans (Alexander 287). 3.3. Data Collection The primary sources of data for this study will the selected Grameen borrower participants. The participants will be supplied with questionnaires requiring them to respond to questions seeking answers to their involvement with Grameen Bank and the impacts it has had on them and the community at large. Questionnaires will be complemented with both structured and unstructured interviews. Photographs of the projects will be taken and be documented as artifacts showing their present state. Observations will be made at center meetings in which, Grameen Bank meets with community members and discusses the progress of the projects and any difficulties impeding their effectiveness (Osmani 695). 3.4. Procedure Study will commence after clearance and approval by relevant ethics committees. While one the field collecting data, every respondent will be issued with a consent form that will contain instructions such as what the study is about and respondent’s liberty to withdraw from the study at any point. Research assistants will take time to explain to participants the things they may have difficulty understanding while responding to the questions provided in the questionnaire. The assistants will express their gratitude to the respondents for participating in the study and forward the collected data for recording and cleaning (Mallick 154). 3.5. Data analysis and reporting A combination of quantitative and qualitative research methodologies and instruments will be used in analyzing the collected data. Descriptive statistics will be used in analyzing the quantitative aspects of the data. The Statistical Package for Social Sciences (SPSS) will be instrumental in this analysis. Qualitative analysis methods will include categorization and thematization of the collected data. The reporting of the results of this study will be done in narrative and interpretive accounts (Rouf 60). 4.0. Findings and discussion and limitations of the study 4.1. Findings and discussion The results of the analysis will be discussed and be explained in detail while relating them closely with the study’s hypotheses. The relationship between the findings of the present study and those of previous research will be of integral concern in the discussion section (Hasan 112). 4.2. Limitations A limitations of this the present study might be the generalizability of its findings. The limitation draws from the uniqueness of the case of Grameen Bank’s involvement in community development and women empowerment in Bangladesh. The study would have to be repeated in different geographical locations under similar conditions to test its consistency (Osmani 695). 5.0. Conclusion Grameen Bank has quality impact in developing the rural communities of Bangladesh. Borrowing from the unconventional microcredit lending used by Grameen Bank, other banks and microcredit institutions should consider adopting poverty alleviation programs that are friendlier to the financial conditions of the borrower than the conventional ones. Whereas Grameen Bank has considerably empowered women by giving them a source of income, better healthcare and parenting education, the bank should provide other supports that will enhance the sustainability of the empowerment. Bangladeshi society has remained predominantly patriarchal, male dominated, and there is need for the bank to give more priority to women in order to increase gender parity. The bank can also consider initiating an advocacy program that will seek to lobby legislation that will help prevent women oppression and teenage marriage. The bank can liaise with the Ministry of Women and Children’s Affairs, and the Women’s Council in the implementation of the Dowry Prohibition Act of 1980 (Alexander 287). Appendix Figure: Bogra District, Bangladesh (National Geographic) Works Cited Abdur, Rudik. Grameen Bank women borrowers’ familial and community relationships development in patriarchal Bangladesh. International Journal of Research Studies in Psychology, 2012, 1(1): 17 – 26. Print. Alexander, James. Adaptive strategies of non-profit human services organizations in an era of devolution and new public management. Non-profit management and Leadership, 2000, 10(3): 287-303. Print. Amin, Said, Rai, Adam, & Topa, George. Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh. Journal of Development Economics, 2003, 70: 59-82. Print. Hasan, Said. Microcredit and Grameen Bank: A new Approach Towards Development. Asian Affairs, 2002, 24(4): 112 – 117. Print. Isserles, Rashid. Microcredit: The Rhetoric of empowerment, the reality of development as usual. Women’s Studies Quarterly, 2003, 3(4): 38 – 57. Print. Mahmud, Said. Microcredit and women’s empowerment in Bangladesh. In S. Ahmed & S. Hakim (Eds.), Attacking poverty with microcredit (pp. 148 - 153). Dhaka: The University Press Limited, 2004. Print. Mallick, Ronald. Implementing and evaluating microcredit in Bangladesh. Development in Practice, 2002, 12(2): 153-163. Print. Osmani, Lupe. A Breakthrough in Womens Bargaining Power: The Impact of Microcredit. Journal of International Development, 2007, 19: 695-716. Print. Rouf, Abdutr. Eradication of Poverty through community Green Economic Development Utilizing Khas (government jurisdiction) Pond: Lessons Learned From Grameen Motsho (Fisheries) O Pashusampad (Livestock) Foundation (GMPF) in Bangladesh. Global Journal of Commerce & Management Perspective, 2014, 3(2): 60 – 70. Print. Schreiner, Moses. A Cost-Effectiveness Analysis of the Grameen Bank of Bangladesh. Development Policy Review, 2003, 21(3): 357-382. Print. Read More