Impact Assessment Study of Micro-Credits on Palestinian Women. Prepared by: Optimum for Consultation and Training

Transcription

1 Economic Studies series Impact Assessment Study of Micro-Credits on Palestinian Women Prepared by: Optimum for Consultation and Training December 2009

2 Copy Right Reserved United Nations Educational, Scientific and Cultural Organization Palestinian Women Research and Documentation Center, UNESCO Mecca Building, 2nd floor, Al Balo a, Al-Bireh, West Bank Palestinian National Authority Telephone : Fax: Website: The Palestinian Women Research and Documentation Center (PWRDC) was founded in 2005 as a special project for the Social and Human Sciences Sector (SHS) of the United Nations Educational, Scientific and Cultural Organization (UNESCO), and operates in accordance with UNESCO s rules and regulations. The PWRDC meets the urgent need for an institution capable of promoting women s rights and activating Palestinian women s roles in economic, political, and cultural domains. Note: The authors of this document are responsible for opinions expressed therein, which are not necessarily those of PWRDC or UNESCO. Design and print by Bailasan company With the support of:

3 Acknowledgements Conducting research and studies is one of the important tasks carried out by the Palestinian Women s Research and Documentation Center to provide information related to the Palestinian women s issues. The primary purpose of these studies is to enable governmental and civil society organizations to develop policies and take measures that improve women situation as well as help them to adopt programs that advocate for and support women s issues. These studies also aim to shed light on the existing gender gaps in different fields so as to bridge them in an attempt to achieve gender equality. Based on this, the Palestinian Women s Research and Documentation Center commissioned Optimum for Consultancy and Training to conduct a study on Impact Assessment Research of Micro Credits on Palestinian Women. The study aimed to explore the extent to which the lending policies empower women. Accordingly, the study seeks to assess the economic and social impact of micro-credits on women and their families with regard to poverty alleviation, enhancement of women role in decision making and changing power relations within family and community. The study sought to assess the extent of success of enterprises implemented by women, learned lessons and success stories in addition to shedding light on problems, which women encounter in managing these enterprises and suggesting suitable recommendations to achieve the required impact. Economic Studies series The Palestinian Women s Research and Documentation Center would like to extend its thanks and appreciation for all those who contributed to this study including the Ministry of Women Affairs, which requested the study, for its continuous support during the research phases. Special thanks go to Fatina Wadhaifi, General Director of Studies and Planning and Amin Assi, Director of Studies at the Ministry. We also wish to extend thanks to Randa Hilal and the research team in addition to Omar Abdel Rahman Nimer who edited the Arabic version. Thanks also due to Dr. Hadil Qazzaz and Reem Abboushi, ASALA Director, for their valuable comments and to Shireen Assaf, the Center Research Coordinator, for her thorough follow up. We would like to thank the Palestinian Network for Small and Micro-Finance Institutions and the lending institutions operating in Palestine in addition to women, community and economic organizations and community leaders for their insightful comments. Finally, many thanks go to all women, borrowers and non-borrowers, who opened the doors of their enterprises, homes and hearts and told us about stories, successes and concerns, without them the study would not have been possible. Zahira Kamal Director of the Palestinian Women s Research and Documentation Center

4 The study was accomplished by Optimum for Consultancy and Training Main Researcher: Randa Hilal * : Expert in Economic Development and Gender Research Assistants: Ghassan Keshk: An Economist working in the microfinance sector Tahreer Atiq: Gender / Optimum for Consultancy and Training field researchers: Fida Abo Turki Ensaf Hamadneh Lina Taha data entry Shrouq Qwariq Shaden Nassar Refrence Committee: Afnan Mahmoud: Director of Palestinian Network for Small and Micro- Finance Institutions Reem Abboushi: Director of the Palestinian Business Women Association (ASALA) Tawfiq Nassar: Trainer and expert in the microfinance sector * A researcher in women s studies, education, vocational training and work.she has several contributions in this field and was the first who got women involved in untraditional training fields.she even was the first director for males vocational training center.she was the first lecturer in the electronic Engineering parts in both Birzeit & Al-Quds Universities. She presented several working papers in this fields, unpublished reports and studies.

5 Table of Contents Executive summary... Chapter one... Study objectives and Methodology Study problem Study Objectives Theoretical framework and indicators used Study Methodology Study phases Sample Selection... Chapter two... Literature review Background on women s economic and social situation in Palestine Economic situation and the emergency impact in the Occupied Palestinian Territory (opt) Women 's labor force characteristics and the economic impact on women Key social indicators on women in the Occupied Palestinian Territory (opt) Women's economic and social empowerment Small and micro-enterprises finance sector... Chapter three... Characteristics of surveyed women and their enterprises features Characteristics of female borrowers Features of female borrowers' enterprises Control group characteristics: Women non-borrowers and their enterprises... Chapter four... Poor women s access to funding and support program Access to Loans/Lending Institutions and Reasons to obtain a Loan through lending Institutions 4.2 Difficulties in obtaining a loan The extent of benefiting from provided services and supporting programs Lending institutions Polices and gender Mission and vision of lending institutions and their relation to product Administrators' and workers' percentage in lending institutions Conditions for women applying for a loan Training and support services for women borrowers Impact assessment and success indicators Have the poor women had the access to financing programs?... Chapter five... Loans impact on alleviating families poverty and on women's economic empowerment Loans economic and financial impact on productive enterprises Loan impact on capital development Loan impact on financial capacity and liquidity Loan impact on competitiveness Loan impact on distribution and access to clients Loan impact on employment and recruitment Family s economic situation development and its contribution to poverty alleviation Contribution to family s economic situation development Contribution to poverty alleviation Loans impact on women s economic empowerment Women's financial capacities development Women's knowledge, management and financial skills development Management and accounting knowledge Marketing skills and enterprise management Managing the financial return :financial decision- making (related to profits and reinvestment) Enterprise ownership and management Emergency Situation impact on the Borrowers enterprises in Gaza Strip Economic Studies series

6 Chapter six... Social empowerment Power Within Self-Confidence Power to Communication and interaction (relationship with family/partner,communicate with the surrounding environment) Change of traditional relations patterns within the family based on gender Change of participation patterns in household chores Women s Freedom of Movement Participation in the family s decision-making Participation in the family economic and financial decision-making Participation in the family s social decision-making Participation in the family s health decision-making The importance of women s role (as perceived by women and their families) Self-development Domestic violence Empowerment and joint working community: power within Community participation Community perception and community empowerment Variables related to social empowerment challenges and obstacles Women s social empowerment and its relationship with the different variables Challenges and obstacles affecting the social empowerment... Chapter seven... Conclusions Have the poor women had the access to finance programs? Have the women been able to benefit from the establishment of their own enterprise in improving the family s income? Has it enabled them economically? (Economic Empowerment) 7.3 Have these loans contributed to changing the pattern and mechanisms of decision-making and power relations at various levels: at the family level, the labour market and society? (Social Empowerment) What is the loan impact on the health level and did it reduce the domestic violence? Did women entrepreneurs succeed in increasing their community contribution and their access to decision-making positions, increasing women representation and making their voices heard by policy makers? Have the economic and social empowerment of women been achieved through their access to financial resources / loan, as a step towards achieving their rights?... Chapter eight... Recommendations... Recommendations for the lending sector... Recommendations for women s organizations, lending institutions and the Ministry of Women s Affairs... Recommendations for conducting further related studies Annexes... Annex 1: Study-related referential information... Annex 1.1: Comparison between characteristics of women borrowers and non-borrowers and their enterprises A3... Annex 1.2: lending institutions Interviewes: mission & vision and information about provided loans A4... Annex 1.3: results of economic impact measurement of loans on women A : Loans economic impact on production enterprises : Economic empowerment... Annex 2: tools used in the study (field researh questionnaire, Themes of focus groups and list of used questionnaires) A References

7 list of tables and figures List of Tables: Table 1.2: Women sample in the focus groups - Gaza Strip... Table 4.1: Administrators and workers percentage in lending institutions... Table 5.1: The loan impact on financial capacities and liquidity... Table 5.2: Using the cash resulting from the enterprise... Table 5.3: Overall average of family income... Table 5.4: Classification of the family economic situation... Table 5.5: Measuring the economic impact on the level of family... Table 5.6: The percentage of change in the family s income... Table 5.7: Borrowers Financial Capacities Development... Table 5.8: Borrowers Knowledge and Practice of Management and Accounting... Table 5.9: Borrowers Financial Independence... Table 5.10: The relationship of ownership with the economic impact and the economic empowerment... Table 6.1: The Financial Capacity and Social Empowerment... Table 6.2: Relationship of Social Empowerment with the Economic Indicators Economic Studies series List of figures: Figure 1.1: Unemployment rate of individuals aged 15 years or more and participating in the labor force in the Palestinian Territory by schooling years (ILO Standards) October - December Figure 1.2: Unemployment rate of individuals aged 15 years or over and participating in the labor force in the Palestinian Territory by age categories and sex (ILO Standards) October - December Figure 4.1: The overall rate of the family monthly income in NIS when borrowing... Figure 4.2: Sources to start the enterprise for non-borrowers compared with sources to start the enterprise had the borrower not obtained a loan... Figure 4.3: Educational level of borrowers, non-borrowers and both groups husbands... Figure 4.4: Vocational education of borrowers and non-borrowers... Figure 4.5: Women borrowers and non-borrowers reasons to start a enterprise... Figure 4.6: Women borrowers reasons to start the enterprise by income category at the start of the enterprise... Figure 5.1: The main sources of income for families of more than one income... Frame 1: Women borrowers and non Borrower s suggestions to improve conditions for obtaining a loan List of tables and figures in appendices Table 3.1: Age of non-borrowers A3... Table 3.2: Marital status of non-borrowers A3... Table 3.3: Relation of non-borrowers to the family A3... Table 3.4: Number of family members including non-borrowers A3... Table 3.5: Sector of enterprise A3... Table 3.6: Enterprise s operator & ownership A3... Table 3.7: Enterprise s location & registration A3... Table 3.1.5: loan impact on competitiveness A6... Table 4.1.5: loans impact on distribution and access to clients A6... Table 5.3.1: Assessment of financial potentials of borrowers in accordance with variables A6... Table 5.3.2: Relation of knowledge & acquired skills with enterprise-related variables A7... Table 5.3.3: Relation between knowledge and acquired skills with enterprise-related variables A7... Figure : comparison of non-borrowers contribution to borrowers A

8 Executive summary 8 Despite the endorsement of several agreements, treaties and international conventions that guarantee the enhancement of women s equality and empowerment, the gap based on gender still exists in several parts of the globe. Consequently, the qualitative studies aiming at studying the forms of women s employment and economic empowerment and their impact on social empowerment are very important to develop the appropriate policies based on lessons-learned and the elimination of challenges; indeed, here lies the importance of this study. Despite the existence of certain studies that measure the social and economic impact of loans on women globally and in various regions of the developing countries, yet there is a lack in studies assessing the impact of loans on women s economic and social empowerment and not to mention the scarcity of studies that measure this effect on the Palestinian women. The major objective of this study is to assess the economic and social impact of micro-loans on the Palestinian women according to multiple levels and aspects related to social and economic empowerment. The secondary objectives are to assess the impact of micro-loans on women and their families economically, the extent of their contribution to poverty alleviation, develop an assessment of the social impact of micro-loans on the role of women in decision-making and power relations in their families and the social surroundings. Other objectives also assess enterprises patterns in terms of failure and success, review the lessons learned, present success stories, analyze problems that impede the development of women s enterprises, and suggest relevant recommendations to achieve the desired impact. The study examines qualitative information that reflect the change and interpret it by using multiple methods and a variety of sources. Therefore, the study adopted the methodology of Participatory Rapid Appraisal using indicators and measurement tools of empowerment on the basis of gender to obtain the impact measuring results rapidly and qualitatively within the framework of the adopted economic and social empowerment. The study focuses on measuring the changes, women different attitudes related to the economic and social empowerment before and after the loan using multiple tools and a variety of sources to validate the qualitative results obtained. A set of indicators were used to measure women s access to financial resources through lending and the extent of the economic and social empowerment achieved. The study covered many villages, cities, and camps in the North, Central and South West Bank, including East Jerusalem. As for Gaza, the work was limited to focus groups with targeted women and control groups in addition to conducting interviews with the lending institutions, and some field female workers. Due to the deteriorating economic situation in Gaza Strip and difficulty to obtain accurate data, the study could not expand. The research included women borrowers from 10 out of 13 lending institutions that meet the selection criteria. While carrying out the research, 304 women were contacted by phone, 94 related cases of women from the West Bank were examined in depth, focus groups were held with 37 women from Gaza Strip, 139 enterprises in various locations in the West Bank were visited, 139 economic questionnaires were completed (94 women

9 taken as case studies and 46 women as a control group), 103 interviews were conducted with lending institutions, field female workers of the lending institutions, community,women and economic organizations, local councils and community leaders. In addition, 20 focus groups which consist of women and their families, and control groups in the West Bank and Gaza with the participation of 178 people were examined. The study concluded the following: The study confirmed that the micro-loan were available to the poor women from poor families who have low resources of income and limited opportunities, and that loans provided them with opportunities to improve their economic situation, despite the access limitations discussed previously. Improving family economic situation and reducing poverty. It was found that 55.4% of the enterprises are the main source of family income, and that 43.5% of these enterprises contribute partially to family income. Also, it turns out that loans have raised the capacities of 80% of the families to have cash savings for emergencies, to secure necessities such as: food, medicine and improve the level of housing, moving from high poverty levels to lower poverty levels and some enterprises contributed to provide employment opportunities. Economic Studies series 9 Loans have contributed to the economic empowerment through self- financial capacity-building, ability of having financial independence, administrative and financial skill-building, ability to make financial decisions related to enterprises development, and the re-investment of financial resources. The majority of women borrowers were able to contribute to securing the basic needs of the family like the children s education and medical treatment. Nearly half of the women borrowers were able to buy a house, real estate or improve the house situation, and more than half were able to meet the secondary needs of family such as entertainment and other things. Most of them were also able to buy their own needs. One of the important economic impacts of the enterprise includes providing employment opportunities for women through the women borrowers themselves and through the recruitment of others, as shown in the study. This is an important opportunity (despite being limited) for women to enter the labor market (regardless of their educational level, age and place of residence), even though most of them are involved in the informal labor market. This is an important result as it leads to bridge the gap related to the contribution of women to the workforce. 42% of the enterprises contributed to creating new job opportunities for women, and thus one enterprise contributed to provide an average of 1.4 job opportunities. It was found that women s involvement in the experience of getting a loan, the establishment of a enterprise or developing what is pre-established and moving forward to achieve success had significantly affected the self-confidence of female borrowers. This change effect is apparent through strengthening women s personality, raising the sense of security, promoting self-confidence, eliminating shame and confusion, and creating positive change on female borrowers personality. This was mentioned by their families, traders who dealt with, lending institutions workers, women s and community organizations, and community leaders whom we met.

10 Self-development and the development of knowledge and capacities resulted in improvement of women borrowers communication and interaction skills with the surrounding environment. The families have mentioned the significant change in these aspects. All of this was reflected in family relationships through the development of their abilities to solve problems with their children and relatives through dialogue; a method they followed with the husband and the surrounding environment. This was confirmed by traders whom they deal with. 10 Indeed, economic empowerment and self-confidence have an effect on the development of women s ability to make decisions which is reflected in practicing the economic, social and health decision-making related to the family. Women s contributions to the economic decision vary significantly and to less degree in the social and health decisions. As for changing patterns of participation in the housework, it was found that there was a limited change, most importantly that there is acceptance for the wife to be busy as well as not being required to carry out the household burdens and further providing help in carrying out these burdens in case the wife is busy. There was a change in roles within the family in terms of employment and production. As the women s enterprises in many cases are the main source of income, women contribute to their family s expenditures, sometimes they employs some of the family members (husband or son), and decide on spending, buy, and invest. For the majority of women, this was accompanied by a more positive understanding by the husband and a positive change in the husband s point of view. Moreover, in some cases, husbands participate in carrying out household burdens and taking care of children. One of the most important outcomes of starting the enterprise is a change in the attitudes of majority of women towards their rights to work: the majority of participants in all groups in the West Bank and Gaza affirmed that Work is one of the women s rights which they will not give up even if the family economic situation becomes better. Women did not realize this fact before starting the enterprise, Their point of view is different now and for the better. Although the majority of them started their enterprises for economic reasons, that was accompanied by a positive change in the attitude towards women s freedom in going out of home as a result of women integration in work. Additionally, enterprises have contributed to a change in the point of view of the surrounding society towards women borrowers, as they gained more respect and appreciation. They were considered as an ideal example for many women living around as they were able to contribute to improving the economic situation of the family, as well as many of them emerged at the level of community work. All of this was reinforced by the emergence of women s success stories and models that were able to change their realities along with their families in different locations. The study showed that loans have an impact on reducing the level of domestic violence (emotional and physical) practiced against women: it was found that domestic violence exerted on women borrowers is less than among the nonborrowers - the control group - (9% to 30% exposed to violence continuously) although the non-borrowers are highly educated and well trained than the borrowers

11 and their husbands. It turns out that an increase in income through the enterprise reduces the impact of violence practiced against the two groups. It was noted that women borrowers have an increased awareness and more community participation in comparison with the non-borrowers. This provided them with the protection of their community, the rejection of violence against them, as well as enabling them to use certain mechanisms to protect themselves. In spite of is the above mentioned, the study showed that a small number of surveyed women were not subjected to violence. Meanwhile, after they got the loan they were subjected to violence, either because of work and being busy to take care of their husbands and homes or, for some of them, because they were obliged to stay for long hours outside home, or due to the failure of the enterprise. As a result, they just suffer from their husbands psychological violence. It was found that for 10% of them, the loan had an adverse change in the husband s point of view after the establishment or development of the enterprise. On the other hand, female borrowers from Gaza spoke of dramatic violence in their surrounding environment; to the extent they considered that the enterprises have negative impact in most cases. Economic Studies series 11 It has been observed that female borrowers have an increased contribution to community work and have influence on the policies of the community institutions - although it is limited- as compared with the non-borrowers. However, their access to decision-making positions, increasing their representation and delivering their voices to policy makers needs a further activation. Moreover, it was found that there is integration between community participation and economic participation and impact of that in achieving economic and social empowerment. This underlines the importance of the mechanisms used by some lending institutions linking their services and participation in community work and its impact on social empowerment. It has been found that the development of the enterprise, its life span and its contribution to family income have a positive impact on social empowerment of women, self-confidence, and the power to change within the family. In addition to these factors, it has been found that the degree of maturity of the enterprise and its ability to recruit members of the community have an impact on changing the perception of community. The study showed that economic empowerment alone is not enough to achieve social empowerment, though it contributes mainly to achieving it. Indeed, community activation has an important as well as essential role in achieving such an empowerment in addition to providing women with the community protection. Selfconfidence resulted from economic empowerment has a key and an important role achieving accomplishments and providing protection for women. The study also examined also the obstacles facing women and preventing them to benefit from economic empowerment to achieve social empowerment. These obstacles were exemplified by lack of husband s support and encouragement, the prevailing social norms, norms related to the stereotypical roles at home, lack of understanding of women s rights, their inability to claim these rights, in addition to customs, traditions and the concept of shame. Women in this context have shown the mechanisms they used to overcome those obstacles. The importance of

12 developing life skills and ability to overcome problems has been identified as one of the mechanisms to overcome obstacles. It was found that obtaining a loan does not necessarily lead to the establishment of an enterprise. It turned out that 21% of the loans are spent on activities other than planned. The economic empowerment is not a direct result of the loan, but that the success of the enterprise and its high contribution to the family income is the key element in the economic empowerment of women. 12 The study showed that the lending institutions adopting a developmental vision attach importance to gender, and target poor women. This issue was reflected on their objectives, programs and targeted groups. It was found that most of the women beneficiaries of those institutions when getting the loan were amongst the poorest women in the West Bank. Also, some of those institutions were able to connect women, via various mechanisms, with programs, activities and women organizations; though these mechanisms need a further development. Based on the study outputs, certain recommendations were offered. Some of them are for the lending institutions and others for women s organizations. Also, other recommendations were offered to carry out further related studies. These recommendations concentrated on maintaining the sector s goals and developmental vision, the development of its social vision towards the economic and social empowerment of women, standardization of concepts towards the importance of the role of the economic and social situation of women, towards the right of women to work and their economic participation in community, towards the role of micro-loans in providing protection for women from domestic violence, and its role in ensuring participation of women in community. Also, they suggested integration of gender attitudes and policies in lending institutions, linking these attitudes with the policies, indicators and the composition of the lending institution. Besides the above mentioned, the recommendations concentrated on the need to expand the role of the lending institutions through adding more financial services in addition to loan, particularly, consulting services, studies and training that can increase the likelihood of success of income-generating enterprises as well as developing their potentials to achieve empowerment. Part of the most important recommendations related to women s organizations and lending institutions is to work cooperatively to develop strategies that take into account the study conclusions regarding the importance of women s awareness (women s rights and life skills) and women s integration with the community work to reinforce women s economic impact in order to achieve the social impact.

13 Economic Studies series 13

14 14 Chapter 1

15 Study Objectives and Methodology International treaties and conventions ensured women s rights in the fields of economic participation, work, and social equality. The developmental policies based on gender set up a bridge to implement these policies. Besides that, social empowerment was considered a gateway to secure women s right of protection, participation, equality and realization of their rights, which are an integral part of human rights. Article 23 of the Universal Declaration of Human Rights states that Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment, and the right to equal pay for equal work without any discrimination. The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) further stipulates the same rights and so does the third development objective of the Third Millennium on promotion of gender equality / gender and women s empowerment. Despite the endorsement of many governments and countries to such agreements, as well as the commitment of NGOs to work in the light of these conventions, yet the gender gap still exists in many parts of the world. Thus, the qualitative studies designed to examine the forms of work and women economic empowerment, and its impact on social empowerment is considered extremely important to develop appropriate policies based on lessons-learned and the elimination of challenges; indeed, here lies the importance of this study. Economic Studies series 15 In spite of the existence of certain studies that measure social and economic impact of loans on women globally, and in various areas in developing countries and although several assessment studies were conducted on the role of lending institutions and measuring the impact of micro-loan on poor families, nevertheless, the studies accomplished in the field of assessment of the loans impact on economic and social empowerment of women in general and the Palestinian women in particular in our region are rare. This study is considered to be the first unique one measuring the economic and social impact of micro-loans on the empowerment of the Palestinian women. 1.1 Study Problem: Although many studies have been conducted on women and employment in the occupied Palestinian Territory and some studies on women s informal employment, but there are scarcity in studies on the role of small and micro-loans that enable women to have access to the necessary funding to increase their capacity to generate income, improve their contribution to the workforce and increase their participation in the labor market through self-employment. In addition, the impact resulting from those loans- particularly impacts of micro-financing- on the women economic and social empowerment is controversial and needs to be studied in depth to evaluate the aforementioned impact. There is a major inquiry among the women s movements on the extent of the achieved impact

16 for these loans, and whether such loans have empowered the women economically and socially or is it a burden on them? Although the lending institutions measured the economic impact of small and microfinancing on the family and its contribution to exit the family out of poverty; yet, these institutions did not measure the loan impact on the level of women s economic and social empowerment. As a result, the study seeks to answer the following questions: Have women- especially poor- had the access to sources of financing? 2. Have women been able to benefit from establishing their own enterprises through self-financing and to control their financial resources to improve family and self-income? 3. Have these loans contributed to change the pattern of decision-making mechanisms, and power relations at various levels: within the family, society, labor market, and the state? 4. Has the success of women entrepreneurs contributed to increasing their community contribution, their access to decision-making positions, increasing their representation, and making their voice heard by policy makers? 5. Has women s economic and social empowerment been achieved through the access to financial resources / loans, as a step toward getting their rights? 1.2 The Study Objectives: The main objective of this study lies in the assessment of the economic and social impact of micro-credits on the Palestinian women in various levels and aspects related to economic and social empowerment Thus, the study seeks to achieve the following secondary objectives: To assess the impact of micro-loans on women and their families economically, and the extent of their contribution in exiting the family out of poverty. To assess the impact of micro-loans socially with regard to the role of the woman in decision-making, power relations in her family and the social surrounding. To assess enterprise patterns in terms of failure and success, to provide lessons learned and review the success stories. To analyize the problems that impede the development of women enterprises, women empowerment and to offer the appropriate recommendations to reach the desired impact.

17 1.3 Study Theoretical Framework and Indicators Used: The theoretical framework of the study relies on the Rights Based Approach [1] which defines development as it goes beyond the needs of rights. This approach is based on a group of foundations, including empowerment and participation. It also adopts Gender Analysis Approach based on the analysis of social relations within the various institutions (family, society, the market, and the state), adopting the analysis of power relations in those institutions, considering that the individual and group civil rights of all its forms: economic, social, political and civil are the basis of development, and considering people in charge to be accountable. This approach also adopts the empowerment of women as one of its basic principles. The important foundations to achieve women rights include: access to sources and ability to control and use them, to control decisions, choices, destiny to achieve their aspirations and ambitions arriving to the point where they make others hear their voices, influence decision-making, then changing the others perception of women and to be able to participate in issues related to the family and community. Economic Studies series 17 The women research, within this approach, relies on the former foundations as a general framework within which it adopts the appropriate methodologies. Therefore, based on the aforementioned framework, the study methodology adopted women s empowerment framework associated with social relations [2] to derive the study indicators and to analyze the results. Also, the study adopted a research methodology based on participation, specifically the Participatory Rapid Appraisal PRA to obtain the qualitative information through the participation of women themselves and stakeholders [3] to measure the attitudes and the and associated change. Based on the adopted theoretical framework and the methodologies used within it to measure the impact, a group of indicators was derived to measure social empowerment, including self-empowerment (Power within), empowerment and the ability to achieve self-change and within the family (Power to), and community empowerment: (Power with)[4], starting from changing self-image and developing it based on what has been achieved and accomplished (the acquisition of skills and supporting self-confidence) to the stage of the development of the capacity of self-change and change within the family (change the relations of power and change in the attitudes) up to the change in community contribution and having the ability to change the community for the benefit of poor women and to change the community perception of their role and contribution. These indicators also consider changing the women s participation and the availability of protection (Participation and Protection). Access to resources is considered the key element of the empowerment framework, and so the possibility of poor and limited resources for women s access to the financial resources was examined as the first step towards empowerment. Within the comprehensive assessment framework of the rights based approach and the importance of accountability element of the lending institutions, the study examined the mission and goals of those institutions, the internal structure, programs, and the extent of their implications on the policies, procedures and poor women s access to loans. Economic and financial empowerment was considered the first step towards selfconfidence (one of the elements of social empowerment) in the sense of control

18 over resources, ownership, the ability to make the financial decision and the extent of financial independence. The enterprise economic and financial impact to achieve economic and financial empowerment for women through selected economic indicators derived from the aforementioned conceptual framework was verified. The study used those indicators in all the research tools, with the emphasis on the extent and type of change (positive or negative) and how this change happens. Therefore, the study included the following indicators of empowerment: Access of poor women to financial resources: Easy access to micro-finance institutions, compared with other institutional entities. (Institutions, banks, social systems) Policies and procedures adopted by the micro-finance institutions, which guarantee the inclusion of poor women. Supporting programs provided by institutions (training, awareness...) Policies that take into account the beneficiaries gender, the percentage of women workers and administrators within the institution. Institution s mission, objectives and its relatedness with performance indicators and results. 2. Economic Empowerment: Capacity development /materialistic capabilities. Knowledge, administrative and financial skills development. Use of financial return (cash inflow): financial decision-making (related to profits and re-investment) Enterprise control: Property and Enterprise Management 3. Social empowerment: The social empowerment indicators were divided into: power within, power, power to and power within. This division is based on understanding the need for social change, based on changing the power relationships among the different levels and on the basis of self-empowerment as a result of economic empowerment. These indicators are divided into the following: Power within o Self-support. These indicators reflect the possession of inner strength and self-knowledge as a result of the economic empowerment Power to o Communication and interaction (the relationship with the family / partner, and interaction with the o Surrounding environment) Change the traditional patterns of relationship within the family that are based on gender (changing the patterns of participation in household burdens and freedom of movement) o Participation in the decision-making related to the family (economic, social and health decisions). o Perception of women and family of the role played by women (their right to work). o Self-development. o Domestic violence.

19 These indicators identify the reflection of self-capacities on the relations within the family and the change of women s and their family s attitudes besides the change in power relations Empowerment and joint work in the community: Power with o Community role and community participation. o Community perception of women s capacities and their role These indicators reflect the change of women s role in the community, the change in the attitudes of the community towards them and the availability of the proper environment to make their voice heard, as well as to represent them. It is worth mentioning that these indicators reflected the nature of the surveyed women and their social class as poor women. Thus, women s financial capabilities development have been divided into (as an indicator of the economic empowerment) several indicators including: women s contribution in satisfying the needs of the family (home, children, education, and treatment), buying their own needs, to meet their recreational needs. The development of economic situation of poor women cannot be discussed without the social framework and understanding the nature of their social class, which necessarily requires firstly the achievement of their and their families survival, then security and independence [2]. Previous studies in micro-finance sector confirmed that many women who are granted loans, they usually obtain such loans for economic reasons related to exiting their families out of poverty. Economic Studies series 19 In the same context, the impact of loans on the development of the economic situation of the family and their contribution to poverty alleviation was measured as an introduction of the discussion about the economic empowerment of women, to verify the achievement of empowerment, it was necessary to ascertain the economic and financial impact on the enterprise and whether the loan is really contributed to the development or the improvement of a productive enterprise. The following economic indicators were adopted to verify the aforementioned: Measurement indicators of the economic and financial impact of loans on the productive enterprise o Capital development o Liquidity and financial capacity of the enterprise o Competitiveness capacity o Distribution and access to clients o Employment and recruitment Indicators of the resulting impact on the family economic situation and lifting it out of poverty o To have cash savings for emergencies o Provision of basic needs such as: food, medicine and residency level improvement o Exiting out of poverty levels to the minimum or average levels of income Empowerment and economic indicators have been used in examining, analyzing and achieving the results systematically and sequentially, where it was determined that: o Poor women have an access to financial resources through micro-loans,

20 o o o o Measuring the economic and financial impact of the loan on the productive enterprise The resulting impact on the family s economic situation and moving it out of poverty, The economic empowerment of women, The social empowerment of women as a result of obtaining the loan. 20 Due to the importance of the study subject in supporting and empowering women, being a subject of great intellectual debate since 1980s, there are several global trends that support women s micro-loans, and that these trends believe that microloans are the savior of the poor women. On the other hand, many women criticize this approach which is based on the market principle, which increases, in many cases, women s dependency, inferiority, and their burdens without paying attention to the surrounding power relations which essentially limit the possibilities of success. As a result, the researcher and research team were biased in favor of the poor women, drawing on theories of social analysis associated with the class analysis as mentioned above was. The researcher envisaged objectivity in her analysis and results, putting the accountable organizations at the core of the assessment on basis of the adopted rights-based approach without any bias regarding the preconceived ideas about the feasibility or infeasibility of loans in regard to women s empowerment. The study attempted to comprehensively carry out the research, where it links between economic analysis, economic and social empowerment and the role of lending institutions within the conceptual framework mentioned out in the conclusions and recommendations that can be invested for the benefit of poor women. The above indicators were examined and results were exhibited in the report within the above sequence to respond to the study questions (Chapter 46-). Conclusions, which answer the study questions within the limits of the mentioned indicators, were then presented to come up with specific recommendations addressed to the loan sector and others were addressed to women s and research organizations (Chapter 78-). The literature review presented earlier provided the essential background about women borrowers in the wider community framework which coincides with the theoretical framework of the study, determined the realities of women within human development indicators, and tried to refer to the related studies (Chapter 2). 1.4 Study Methodology: The measurement of the impact requires identifying the change, its type, how it happened and its time duration. This measurement is not an easy job and requires using a methodology which seeks to obtain qualitative information exploiting multiple methods and a variety of sources. Therefore, the study adopted PRA methodology using indicators that have been derived from the conceptual framework. Multiple tools and a variety of sources were used to verify the obtained qualitative results 1. The most important methods were the women themselves and stakeholders including: families, local community, traders and women working in lending 1 See appendix #2 for the tools used in the study.

21 institutions that were able to monitor indicators of changes across different points in time, interpreted them, and to measure the extent of the resulting economic and social empowerment. The research also required the selection of a control group of women who established enterprises without obtaining loans. The environment and the enterprises for these women were close to the surveyed women in order to discuss the different mechanisms of access and the impact of empowerment. To achieve a comprehensive view of the reality of lending and its impact, many of the economic and women s governmental and non-governmental organizations were interviewed in addition to carrying out desk research of the local, Arab and International literature. The study includes assessment of attitudes and policies of lending institutions linking them with the concept of empowerment and meetings with the lending institutions were held to examine their visions and policies. Also the surveyed women s access to loans was examined through women and their families, lending institutions, and field workers. Economic Studies series 21 The economic aspect requires verifying the economic indicators of the enterprise, its impact on the family, the questionnaire development based on the economic indicators and the economic and social empowerment. This aims at obtaining data that come up with quantitative and qualitative indicators with regard to the economic impact of lending on the enterprise, the family and women. Also, this aspect requires carrying out field visits to the enterprise, to fill the economic questionnaire and to meet up with the women before forming focus groups. From the above, it is clear that the methodology of the study adopted desk research studies, research papers and publications. The field research aimed to carry out a thorough and detailed quantitative and qualitative study of the surveyed women as follows: 1. Field visit: Visiting women in the location of their enterprises, having a close investigation of the enterprise, and filling out the forms of the field visit indicators. 2. Economic Survey: Includes an economic questionnaire that must be filled out by the field researcher in the presence of the concerned women. It also includes some questions about the social impact and some open-end questions. 3. Conducting interviews: These interviews are conducted with the stakeholders including: lending institutions, field female and male workers of these institutions, and women, community, local, economic and national institutions 4. Meetings with women focus groups and their families to obtain the essential qualitative and interpretative information. 5. Control group: visiting their enterprises, filling the form, and holding focus groups meetings with them.