ROLE OF MICROCREDIT PROGRAMS IN SOCIAL RECONCILIATION: A SOCIOLOGICAL STUDY OF WOMEN'S DEVELOPMENT

Abstract

Amidst the challenges faced by women in today's society, it is crucial to focus on their development. Since 1976, microcredit programs have been introduced as a tool for poverty alleviation, primarily targeting the poor and women, aiming to promote their development. Social reconciliation is also considered within this scope of development. The study focuses on the Mavadivembu 02 GN division, utilizing both qualitative and quantitative research methods. In 2019, women beneficiaries of microcredit were selected as samples for data collection. Ten institutions, including LOLC Development Finance (BRAC), LOLC, HNB Grameen Finance Ltd, Commercial Credit & Finance PLC, Berendina, YMCA, RDB, People’s Bank, BOC, and Samurdhi, provided 591 microloans. From these, 50 women who received microloans were selected as samples based on simple random sampling using purposive sampling, and data was collected through questionnaires. Individual case studies, interviews, and focus group discussions were also conducted. The study found that the microcredit program has contributed to social harmony in women's development to a very low extent. On the contrary, it has caused many negative social and economic effects, leading to social discord rather than harmony. The study suggests that these outcomes are due to weaknesses in the implementation of the microcredit program and among the women beneficiaries, as well as a lack of adherence to the theoretical framework of community-based development (Community-Based Development theory: 1995).