In the media we often hear about Afghanistan in the context of war, poverty, or budgeting. What we do not often see is how the lives of Afghani citizens have been impacted over the course of its tumultuous history. As a nation continually plagued by war, how can Afghanistan ever be stable? In my research I focused on the intersection of gender and economic development. Researching the economic development of women led me to look more specifically at micro-financing as a tool of development. Micro-financing or micro-credit is a small loan given to individuals of low economic status. The intent of these loans is to allow the individual to be a contributing member of the economy. These loans help members of lesser-developed nations to improve their lives.
Female economic development is an important and relevant topic in lesser-developed nations, particularly in the Middle East where cultural barriers often determine the ability of a woman to function in society. Micro-finance loans are beneficial to these women and their families because women are more likely to save money or spend it on crucial items for development such as food, vaccines, and education. Women prove to be smarter “spenders” then men in developing nations.
In looking at scholarly articles and reports on micro-financing I evaluated the effectiveness of various methodologies of lending. All of these methods are intended to improve the financial status of the individuals who they provide loans to and their families. During my research I analyzed the effectiveness of each methodology in targeting women, providing loans in rural areas of Afghanistan, and receiving returns on the initial investment. Micro-financing is an important method in allowing nations and individuals to develop, but like any method there are flaws. Particular models prove to be more effective at certain aspects of development than others. Often the greatest benefit of micro-financing is not the money itself but the independence it provides these women and their families.
Another great benefit of micro-financing is that most of the lenders are also providing job or skill training. This allows many women to develop skills that they otherwise would lack. When these women are able to run economically productive businesses their husbands, brothers, fathers, and sons have often come to show far more respect for these women (often seeing their lives as economically valuable for the first time). While the reality for women in Afghanistan is currently bleak, micro-financing will be a key tool in enabling Afghan women to advance their political and economic situation as well as that of their families.
