The Function of Micro Credit System in Social Amendment A Case Study on Rajshahi District in Bangladesh

Abstract

Micro-credits an extremely small loan given to impoverished people to help them become self employed havebecome an important tool in development economics and play an essential role in the fight against poverty, inparticular with respect to the self-sufficient of women. Since Muhammad Yunus, the founder of the Grameen Bank2,received the Nobel Prize for Peace in 2006, microcredit-systems have been increasingly conceptualized as part of aprofit-oriented “financial system approach”.For more than twenty years, microcredit has been widely heralded as theremedy for world poverty. Recent news stories, however, have sullied microcredit’s glowing reputation with reportson scandals, exorbitant compensation to managers, skyrocketing interest rates, and aggressive marketing schemes.Once praised as a universal panacea, microlenders are now being widely attacked as predatory loan sharks. (Korten,2011)However, in this paper we will discuss different approaches to micro-credits dealing with the question of howfar different concepts influence societal gender arrangements and under which circumstances micro-credits are usefultools for the self-sufficient of women in a sustainable way. For this reason, the results of an empirical studyconducted in Rajshahi will be presented in order to develop a multilayer model for the self-sufficient of womenwhich shows possible impacts of micro-credits on the individual level (micro level), the community level (centrallevel) as well as the socio-political level (macro level)

Keywords: Self -sufficient Women, Micro credit, Social Amendment, Fund for Development (SFD).