Microcredit, founded by Muhammad Yunus in 1983 in Bangladesh, is a method that aims to decrease the poverty rate by providing microloans to members of the bank. In rural Bangladesh, there are many struggling working adults that are unable to support their families sufficiently. The practice of microcredit is essentially the extension of microloans to impoverished villagers who lack employment. There are three main providers for microcredit programs in Bangladesh: Grameen Bank, Rural Development RD-12, and the Bangladesh Rural Advancement Committee BRAC. .
In rural Bangladesh, women face many gender inequalities and are treated with an unequal amount of respect in comparison to men. Many women play a minimal role in providing necessities for their family. The dominant males typically abuse their wives because they perceive them to be essentially useless. These women join microcredit banks in hopes of overcoming poverty, gender inequalities, and living a fulfilled and empowered life. Through microcredit, a vast majority of the women grow to become successful, self-employed women who are able to confront gender inequalities and eventually share equal power with their spouses. Microcredit banks, specifically the Grameen Bank, are manifestations of a successful development that ensures sustainability and empowerment for all women. Although the practice of microcredit can potentially become harmful to women. So, to what extent does microcredit empower women in rural Bangladesh? .
Fundamental Principles.
When becoming a member of a microcredit bank, borrowers must agree to abide by the four fundamental principles: discipline, unity, courage, and hard work (Rahman 87). The Grameen Bank encourages members to practice and follow these rules and regulations in their everyday lives. They are created to promote group performance and discipline among the members of the banks. Discipline is enforced during the deposit stage of the borrowing process.
