Empowering poor women: microfinance – what works?

Ten years of experience and reflection in Vietnam: International Women’s Development Agency-Vietnam Women’s Union microfinance research project

IWDA was involved in microfinance activities in Vietnam from the late 1980s until 2003. With funding from the Australian Agency for International Development, IWDA and the Vietnam Women’s Union embarked on a collaborative journey to examine the legacy and learnings from a decade of designing, managing and implementing microfinance projects.

Findings from the participatory research confirm that microfinance is a valuable tool for facilitating the economic and wider empowerment of women in contexts where there are barriers to accessing financial services.  But the way in which it is provided, and the nature and scope of the support, assistance and learning available to borrowers is critical to overall impact, particularly on women’s empowerment. 

The research enables us to hear first hand from poor women about what works and how microfinance makes a difference.  Their voices are a powerful reminder of why microfinance is important in a world of imperfect markets and systemic barriers to women’s participation.  Importantly, the research also highlighted that what women particularly valued was the solidarity, training and access to new information, knowledge, and skills that were an integral part of the IWDA-VWU approach.

Thanks to the assistance from my family and women members in our group, our economic status has improved remarkably.  From training, I now have knowledge about balancing loss and profit and finding more feasible businesses to set up.  I keep all records on what I have earned, even if it is from corn or beans, and what I have spent after one day, even if it is money to pay study fees for my children as well as all other family expenses. Now I am able to set up a more feasible business plan and have learnt the lesson that you cannot have success without a good and detailed business plan.

Women spoke with pride about the positive changes in their status in the family and in society:

My status is now much better than before…if you visit my house you could not guess how poor we were…my status in the family is also improved…when I go out people look at me differently…

In addition, now I am the head of two women’s savings groups.  Previously, I hadn ‘t been capable of bookkeeping.  Now I skilfully manage the funds of two women’s savings groups and I am trusted by group members.

Men, too, spoke positively of the impact on their partner’s confidence and knowledge:

Previously, my wife rarely discussed anything with me.  If I wanted to do something, my wife agreed with me and sometimes I failed.  Since she has been involved in the project and able to access the training and meetings, my wife’s knowledge has improved and she is more confident.  She now discusses family issues with me…

Hard copy of this 110-page publication can be ordered from IWDA.  Order form

You can download the report Empowering Poor Women – Microfinance in Vietnam and the Appendices and Bibliography.

This entry was posted on Friday, August 20th, 2010 under Economic Justice, Information Packs, Vietnam.