Title: Microfinance, Financial Literacy, and Household Power Configuration in Rural Bangladesh: An Empirical Study on Some Credit Borrowers
Abstract: The paper explores the impact of microfinance on multidimensional constructs of empowerment and the catalysts thereof. The reference point for analysis in the paper is the women microfinance borrowers’ self perception about their life transmutation as well as that of household power configuration. Unlike other recent research papers on the topic that focus on women’s economic empowerment, this paper focuses on both economic and socio-cultural empowerment. The paper is based on both primary and secondary data. Qualitative primary data were collected from women beneficiaries of microfinance in Bangladesh. This paper argues that microfinance can be a useful empowerment tool that can transmute women’s economic position and power relationships, but only when combined with financial literacy. It concludes that financial literacy is more important than access to credit and should be the focus of all future microfinance programs.