The subject matter of “Women Empowerment” has become a red-hot issue all over the world, now a day. “Women empowerment” and “women equality with men” is a sizzling topic in the developing countries. Women population constitutes around 50% of the worlds population. “We cannot all succeed if half of this is held back.” – Malala Yousafzai. Many women around the world are unemployed. The world economy suffers a lot because of the unequal opportunity for women at workplaces. Women Empowerment reduces poverty. Sometimes, the money earned by the male member of the family is not sufficient to meet the demands of the family. The added earnings of women help the family to come out of poverty trap and in improving the living standard. Womens access to credit positioned vivacious issue on the international agenda of ‘The Fourth World Conference on Women held in Beijing in 1995. One of the major goals of the International Year of Microcredit (2005) was topromote the role of microcredit in achieving the Millennium Development Goals. The General Assembly adopted a resolution (A/60/210), recognizing the importance of microcredit/microcredit in achieving the MDGs, especially goal #1 (reducing poverty) and goal #3 (gender equality and womens empowerment). 

The Global Microcredit Summit-2006 has also adopted a specific target to boost half a billion people out of extreme poverty. Bangladesh is one of the density populated countries in the world. It has 160 million people in its domestic territory. 

The Human development Index (HDI) ranked Bangladesh at 138 among 189 countries in 2016 (United Nations Development Program [UNDP], 2018). Data has been revealed that 49.6 percent population live below income at US$1.25 (UNDP, 2012). Though most of the populations live below poverty line, they need to get support to do away with their poverty. A Lot of MFIs in Bangladesh namely GB, BRAC, ASA undertook many programs to reduce poverty and to develop socio economic status of the rural poor women and have developed a success model of micro-credit for the poor women (Basak, 2021). Numerous literatures and documentations in the sector of micro-credit has been demonstrated the truth of positive impact of micro-credit on the empowerment of poor women by alleviating poverty and uplifting their living standard. Thus, microcredit is providing a conduit to the empowerment of rural poor women. To justify the impact of microcredit on the empowerment of poor women this study has been conducted simply on the credit recipients of two MFIs namely BRAC and ASA. BRAC and ASA are playing worth men-tioning role to reduce the vulnerabilities of the poor women in the rural areas of Bangladesh. Now, BRAC and ASA have been providing microcredit and related services to 5.3 million and 5.8 million poor household respectively all over the country (Bangladesh Rural Advancement Committee [BRAC], 2019 & Association for Social Advancement [ASA], 2019). Due to enormous penetration of BRAC and ASA into the large community of rural areas, this study chooses these two organizations to analyze the impact of microcredit on the empowerment of poor women of Hathazari, Mirsharai and Sitakunda Upazilla (sub-unit of district) of Chattogram district of Bangladesh. In the field of socio-economic development, the word ‘microcredit and ‘women empowerment got immense popularity as a research topic in the context of Bangladesh. Microcredit has contributed at least 9-12 percent to the GDP of Bangladesh (Raihan et al., 2015). 

In recent years microcredit has expanded both horizontally and vertically. Success stories of Bangladesh in the field of microcredit and women empowerment draw the attention of thousands of researchers, academics, research fellow, and Non-Govt. Organiztions (NGOs) activists for its unique role in empowerment of women by reducing their poverty. This study is also an attempt to share the findings in the basket of its success stories. Present study was conducted on the role of microcrediton women empowerment steamed from the data collected from women borrowers of BRAC and ASA- the leading NGOs in this sector. Many studies have been conducted on the poverty alleviation role of microcredit in several distinct areas, but study on the said areas was few. 

Most of the researches are found to focus on the variables on an aggregate basis, like monthly income, monthly expenditure, etc. A notable lack of research has been conducted on the expenditure variables separated by nutrition expenditure, education expenditure, health expenditure, and clothing expenditure. In the present study, microcredit impact was demonstrated separately for each of these variables, since all variables were taken into account to estimate the actual improvement in the condition of the poor community in the study areas. Microcredit was examined using one-way Analysis of Variance (ANOVA) and Chisquare tests to analyze whether it was associated with and contributed to income, expenditure, housing conditions, land holdings, assets, education, health and nutrition, and pure drinking water and sanitation. The aim of the present study is to examine the impact of microcredit in the Chattogram District of Bangladesh on womens empowerment and to provide policy recommendations based on the findings. 

Studies evaluating the impact of microfinance on the various dimensions of empowerment of poor women borrowers have accumulated an immense body of empirical literature. It is well known that microcredit plays an important role in womens empowerment. Microcredit has been shown to have a positive effect on empowering women and improving their livelihoods through a number of studies. Hashemi et al. (1996) studied the impact of microcredit and micro-finance programmer on the lives of women and found microcredit as a significant factor contributing to empower women. Rathiranee and Semasinghe, (2015) argued that microcredit is a base to women empowerment by improving economic activities and self-employment, assisting women meet their practical needs and increase their efficacy in their traditional roles and to gain respect and achieve more in their socially defined roles, which in turn may lead to increased esteem and selfconfidence which may contribute decisively to a womans ability and willingness to confront the social injustices and discriminatory systems that they face and implies that as women become financially better-off their self confidence and bargaining power within the household improved and this straight leads to their empowerment even during COVID-19 (Ayittey et al., 2020). Microcredit found leading to increased women empowerment through increased power in decision making. Browning  and  Chiappori, (1998) showed  in  their  collective decision-making  model  that  if  behavior  in  the  household  was  pare to  efficient,  the households objective  function  takes  the  form of a weighted sum of  individual utilities. It  was  assumed  that by increasing  the  relative  value  of  the  female members time and income, the weight and therefore the bargaining power of the female could be  increased within the household (Chowdhury and Dhar, 2012; Dhar et al., 2014) which also maintain the process of shariah (Hasaan et al., 2019; Masruki et al., 2020). 

Hulme and Mosley (1996) wrote a positive impact was found on borrowers; both male and female, income with an average increase over the control group ranging from 10 to 12 percent in Indonesia, to around 30 percent in Bangladesh. Hashemi et al. (1996) conducted one  of  the  earliest  studies  on  micro-credit  and its effect on women  empowerment  in 1996 by a longitudinal study, conducted on 1300 married women  in  Bangladesh  between 1991  and 1994  by  comparing  participants  of  two different microcredit programs, Grameen Bank  and  BRAC, with  a control group divided  into - a  group of women with  access  to  the  same banks  and another group with no access to microcredit. Hashemi et al. (1996) had assessed the empowerment via a number of factors such as womens mobility, ability to make purchase, ownership of assets, and political awareness. The survey finds a positive relationship between access to microcredit and women empowerment and Swain, (2007) examined the impact of Self-Help Groups (SHGs), a group lending form of microcredit in five Indian states. Goetz and Gupta, (1996) studied the effect of microcredit on women empowerment by conducting a questionnaire with 253 female members from Grameen Bank and BRAC, showed that married women compared to unmarried women had exercised less control over their loans and its utilization. In a study by Islam, Hossain and Afrin, (2014), 100 microcredit recipients of Grameen Bank, BRAC, and ASA were studied to determine the effect of micro-credit on poverty reduction. According to an analysis of a structured questionnaire, these MFIs play an important role in reducing poverty by creating employment and increasing the living standards of women borrowers through better education and health facilities, and thus providing them with a sense of empowerment. The income level of the Rural Micro-credit (RMC) house-holds improved slightly in another study conducted by Khanom, (2014). Khandker et al. (2015) recognized interesting results on the longer-term effects of microcredit on household welfare, utilizing a panel data of households covering 87 villages of rural Bangladesh and they estimated the long run effects of microcredit on household per capita income, expenditures, poverty, non-land assets, household net-worth, male & female labor supply and schooling of children. A survey conducted by Terano, Mohamed and Jusri, (2015) on 100 credit recipients illustrated the impact of microcredit on total income level raised by using descriptive analysis, factor analysis and multiple regression analysis. Pomi, (2019) discovered that in Chattogram microcredit disbursed through BRAC and ASA play an important role in reducing poverty by enhancing the income-generating activities of borrowers and enhancing the living standards of poor women. There is a need for psychological adjustment when the womens health index is being developed (Sarkar et al., 2018). In Pomi, (2019) study, it was also noted that microcredit benefits poor women borrowers who attended BRAC and ASA for at least five years, compared to non-borrowers. For developing the positive impact related vocational education and leadership are required (Dhar, 2020; Dhar et al., 2020; Dhar and Mutalib, 2020). A study by Karim, Tania and Frarazi, (2013) found that micro-credit programmes are generating positive results for many poor individuals. In a study conducted by Islam, Kabir, and Dey, (2012) on ASA and PRO-SHIKA, the authors argue that microcredit contributes to poverty eradication by increasing income-generating activities among poor people, and empowering them to access health, education, and reduced vulnerability. The study by Khan and Rahman, (2007) also discussed that microcredit is one of the most effective methods of eradicating poverty. In addition to Awan and Juiya, (2015), Idris, (2015), and Alnaa and Ahiakpor, (2015), microcredit was also found to have a positive impact on poverty reduction. The outcomes of giving credit to women have seen controversial issues, some researchers argue that micro-credit has positive outcomes on women‘s empowerment while others argue that microcredit credit bring negative outcomes for women. Kabeer, (1999) distinguished that womens empowerment is the process to empower those who have been denied the ability to make the strategic life choices, which incorporates interrelated dimensions- resources and achievements. Kabeer, (2001) in another study has examined the relationship between micro-credit and women empowerment by interviewing both female and male microcredit program participants in two provinces in Bangladesh. The conclusion from her study was that women who received micro-credit had a higher self-worth and better access to capital. Even if participating in a microcredit program in some cases led to a higher workload, the women think positively about their increased contribution to the household income. Furthermore, she finds that in many cases microcredit increased womens decision-making ability within the household. Recently, some studies argued on the impact of microcredit with a question that the impact of microcredit is conflicting between positive, no impact and limited impact to the less poor and even negligible or negative impact on the poorest. Banerjee et al. (2015) surveyed on 52 respondents to determine the impact of microcredit and used two goods to describe the impact of microcredit on consumption expenditure. Banerjee et al. (2015) found that expenditure of “durable goods” increased but expenditure of “temptation goods” declined and no significant difference was reported on health, education or womens empowerment. In contrast, some studies have found that microcredit has neither a positive nor a negative impact on womens empowerment. A study conducted by Leach and Sitaram, (2002) discovered that microcredit has been successful in empowering women socially where economic empowerment was inaccessible due to a lack of awareness and understanding among women about business. A study by Berglund, (2007) found that empowering individuals did not have an impact on groups. Schechter (2007) observed that credit facilities helped women to run a business and earn small profits, but they were still found dependent on family members. For developing human capital (Absar et al., 2021; Dhar et al., 2017; Dhar et al., 2018; Dhar et al., 2019) and sustainable economic growth (Pomi et al., 2021) and social responsibility (Dhar et al., 2021) with proper marketing policies (Crowley et al., 2020; Sayeed et al., 2018) even during and after the pandemic, COVID-19 (Chowdhury et al., 2021; Dhar et al., 2020), micro-credit plays a significant role. Although having some disagreement, the vast literature works revealed enough empirical and quasi-empirical evidence that supported the positive impact of microcredit on women empowerment. Hence without any question, it can be alleged that a well-designed microcredit or microcredit program can thus substantially change the lives of the poor women at the individual, household, enterprise and community levels and help raise the poors out of poverty. Rahman et al. (2009) examined the impact of microcredit on womens empowerment of borrowers having different levels of income by using control group, which showed that non-borrowers were equally empowered as microcredit borrowers.

This study was basically explorative in nature. The study has adopted ‘purposive sampling in selecting the samples and used both unstructured and structured instruments for collection of data. Both statistical and econometric techniques and some relevant parametric tests were used for analyzing data and for conducting test hypothesis respectively. 

Sampling Design of the Study

Two samples have been considered in this study. One has been selected from loan recipients (women borrowers) and the other from non-recipients of loan (non-borrowers). For simplicity, the study regarded two MFIs namely BRAC and ASA for collecting data. Data was collected from the respondents using a face-to-face interview schedule (Questionnaire). Questionnaire comprised of information related to the background of respondents such as gender, age, education, number of family members and living standards, quantitative data about income generating activities of the women borrowers to improve their living standard and qualitative data that leading to the passageway of empowerment of women borrowers in terms of (a) psychological empowerment, (b) economic empowerment and (c) social empowerment. 

Some structured questions and some dichotomous questions were asked to collect the information from the respondents. Structured questionnaire was used to collect data for different outcome variables indicating ‘before and ‘after of receiving credit by the borrowers and ‘before 5 years back and ‘current year for the non-borrowers respectively. Dichotomous questions had only two response alternatives - yes or no.

Selection of the Study Areas and Period of Data Collection 

This study has selected only three upazillas in Chatto-gram district (namely Hathazari, Sitakunda and Mirs-haraiupazilla) for the purposes data collection. It was presumed that the study areas would represent the whole scenario of rural part of Bangladesh. The selection of the study areas was based on the following criteria- (a) that covered by microcredit operation of BRAC and ASA and continuing poverty reduction program since last 20 years, (b) where number of unprivileged poor women was high and (c) areas that are geographically and environmentally convenient for collection of data. The study was conducted from January, 2018 to February, 2019.

Selection of the Sample of Borrowers

Out of a total number of 25 branches, 10 branches of BRAC & ASA (5 branches from BRAC and 5 from ASA) were selected to determine the credit recipients from the study areas. From each branch, one village centers and 10 groups (each groups contains at least 10 persons) have been selected for data collection. This study has selected 205 borrowers randomly at 5 percent level of significance based on standardized random sampling formula. Primarily, this study attempted to conduct interview of 205 borrowers and finally the study was successful in conducting interview of 100 borrowers and the success rate is 48.78 percent. 

Selections of the Sample of Non-borrowers 

Besides 100 borrowers, another set of 50 non borrower respondents were also selected as the control group who did not take any credit from BRAC or ASA or any other MFI to compare the consequences of empowerment of the study. 50 non borrower respondents were also selected randomly.

Types and Sources of Data

The Current study was based on the extensive use of primary data. Primary data were collected from the household of three Upazilla of Chattogram district namely Hathazari, Mirsharai and Sitakunda for the purpose of the study. The primary data have been collected through structured questionnaire from the 150 respondents that included both borrowers (100 respondents) of BRAC & ASA and non-borrowers (50 respondents). Personal interview method was used to collect the data. Moreover various books, journals, website and other publications of BRAC and ASA were used for reviewing the fact thoroughly.

Operational Variables

The operational variables used in the study clearly reflected the extent of empowerment of women of both sample groups. BRAC and ASA play a dynamic role to reduce vulnerability of the poor women in the study area by income generating activities of the women borrowers and in improving their living standard leading to the passageway of empowerment of women borrowers in terms of the operational variables categorized under (a) psychological  empowerment by acquiring decision-making power in the household activities, (b) economic empowerment by making contribution to living standard & control over assets, (c) social empowerment by getting freedom of voice and mobility. Acquiring decision making power was measured by the parameter namely decision-making ability on food consumption and small purchase (for example, dress), buying/selling property and adopting family planning choice. Contribution to family income & control over assets was measured by spawning income and contribution to the family expenditures, gaining access to pure drinking water and hygiene/sanitation, deserving independent savings and acquiring household assets in her name. Getting freedom of voice and mobility was measured by self-determined polling decision, freedom of movement to public places without the permission of anybody etc. respectively by the women borrowers who spent five years in BRAC and ASA comparing with the non-borrowers who are not facilitated through any microcredit program. The following Table 1 narrates the indicator or variables that were considered to determine the impact of microcredit on the extent of empowerment of the women borrowers and non-borrowers.

Table 1: List of indicator or variables considered to determine the impact of microcredit on the extent of women-empowerment.

Contribution to family income and control over assets was measured by spawning income and contribution to the family expenditures, gaining access to pure drinking water and hygiene/sanitation, deserving in-dependent savings and acquiring household assets in her name

Analysis of Data

Data of the respondents were analyzed by Mean Value Analysis and Statistical Analysis. Mean Value and Standard deviation of the variables have been determined to evaluate two situations on ‘before and ‘after of the microcredit recipients/borrowers and ‘5 years back and ‘current year of non-borrowers from the study areas to recognize the level of empowerment and improvement of living standard.

Contribution to family income and control over assets was measured by spawning income and contribution to the family expenditures, gaining access to pure drinking water and hygiene/sanitation, deserving independent savings and acquiring household assets in her name.

Analysis of Data

Data of the respondents were analyzed by Mean Value Analysis and Statistical Analysis. Mean Value and Standard deviation of the variables have been determined to evaluate two situations on ‘before and ‘after of the microcredit recipients/borrowers and ‘5 years back and ‘current year of non-borrowers from the study areas to recognize the level of empowerment and improvement of living standard.

Descriptive statistics: Demographic characteristics of the respondent

Among the 100 microcredit borrowers, 51 from BR-AC and 49 from ASA were selected for this survey who received credit from 10 branches of BRAC and ASA respectively. For making comparison between borrowers and non-borrowers a sample of 50 non-borrowers were also selected from that area for analysis. Baseline demographic data of the borrowers and non-borrowers were collected to depict the characteristics of respondents such as age, marital status, education, factor influencing credit decision, purpose of receiving credit by the respondent that are presented below in Table 2.

Table 2: Demographic Characteristics of the respondent borrowers and non-borrowers & purpose of receiving credit by the women borrowers in the study areas.

In this study, various dimensions of livelihood in rural Chattogram district (Hathazari, Sitakunda and Mir-sharai) were assessed as a result of borrowing from BRAC and ASA. Moreover, this study shows that BRAC and ASA microcredit programs help improve the socioeconomic status of borrower participants. Our results recommend that microcredit has a positive impact and significant contributions to household in-come and consumption. These results are in line with previous studies and enumerate that microcredit creates positive effects for the poor. Microcredit opens an opportunity for women borrowers to play significant role in the economic development of the country. Since independence MFIs (BRAC, ASA and the like) play a vital role to improve the poverty situation of Bangladesh. From the present study, it can be apprehended that BRAC and ASA microcredit have a positive impact on monthly income, monthly expenditure on education, health expenditure, condition of dwelling house, gaining homestead and agricultural land etc. BRAC and ASA provide their services only to the poor women. BRAC and ASA mainly involve with the practice of microcredit (loan products) only in the study area. The performance and achievement of BRAC and ASA in Chattogram is of great importance in the context of alleviating poverty of poor women. More research needs to be carried on the impact of microcredit on poverty alleviation through other MFIs also in Bangladesh to achieve our MDG. 

To begin, I wish to thank Almighty Allah for keeping me swell enough to carry out this research. All respondents who took the time to complete the survey, as well as all individuals who contributed directly or indirectly to the studys preparation, are acknowledged. 

The authors have no conflicts of interest in publishing this research study.