How Microfinance Helps With the SDG #5 Paper Example

Despite a larger percentage of the world's population being comprised of women, they face a wide range of challenges. These challenges range from representation in politics and governance, economic well being, gender stereotype on women, poor access to social services among others. Though these challenges are experienced globally, women in developing countries are at higher risk of being disadvantaged and facing the challenges. In order to address these challenges, different countries have undertaken a number of affirmative action's to try and mitigate the overwhelming number of challenges women face. As a result, different organizations, including profit and non-profit making organizations have been established and strengthened in order to better the situation women are facing. Chiefly, the major challenge facing women is dependency due to poor economic status. Faced by this challenge, women are left vulnerable and are taken advantage of by their male counterparts in all spheres of life. Women empowerment has been a global challenge for many years. Statistically, 70% of world's poor people have been identified to be women, with countries such as Ghana recording 65% of women subjected to absolute poverty (Addai 1). As a result, a number of measures have been put in place to strengthen women economically. Among the many steps put in place to better the reality facing women in third world countries, the establishment of microfinance's in different countries has significantly empowered women globally.

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The establishment of microfinance's has gone a long way in empowering marginalized groups and small businesses. Basically, microfinance's target the small entrepreneurs and marginalized groups whose access to banking services is limited either due to their economic ability or their marginalization Valencia Villa 5). In doing so, they offer loans and also work closely with target groups in providing education and helping them not just to save, but also to plan and establish investments that are helpful in bettering their economic status. Most importantly, they are able not to offer relationship-based banking services to the clients and further operate with group-based models. Notably, the establishment of microfinance is majorly either in rural areas in developing economies (Valencia Villa 10). Mushrooming urban centers also have these institutions as many small-scale traders access their services to further their business. The target groups by microfinance are characterized by a number of disadvantages in financial services and management (Rifqi 4). Majorly, the marginalized target groups have limited access to education and thus have little or no knowledge in relation to financial services ("In Focus: Women and Poverty"). Moreover, most of the target groups are disadvantages in terms of limited access to banks, poverty, poor infrastructure, and poor access to knowledge in the use of technology and access to up to date information in their areas of operations. Microfinance is able to offer a wide range of services.

Microfinance institutions majorly offer group loans, individual business loans, agricultural loans, insurance services, money transfers, energy loans, and savings accounts ("FINCA Services"). While group loans help individuals access loans having a guarantee from their fellow group members, individual business loans are larger loan sizes which are more flexible and allow small business operators to grow and expand their businesses ("What is Microfinance and How Does Microfinance Work?"). On the other hand, agricultural loans are accessible to rural clients and mainly assist them in accessing capital to acquire agricultural inputs. Insurance services range from one microfinance to another but majorly aim at reducing financial stress by meeting major expenses in case of sudden losses such as disability ("FINCA Services"). They also ensure that money transfer by the clients is not only safe but also affordable. Saving accounts further help the clients save finances for expenses in the future. These ranges of services make microfinance institutions very essential and useful among entrepreneurs in low economic areas and also assist marginalized groups who have limited access to banking services are able to access financial services that are affordable, reliable, and accessible. Most importantly, the relation-based approach in offering such services help the clients not only to have access but also to gain knowledge and a basic understanding of financial management.

For many centuries, different communities globally were faced by a wide range of social challenges which prompted the United Nations Organizations to come up with the famously known Millennium goals aiming at addressing the challenges. The SDGs, signed in the years 2000 by the United Nations General Assembly, saw the coming together of 189 countries from different parts of the world who committed themselves to undertake affirmative action's to ensure that the goals were met ("Goal 5 .:. Sustainable Development Knowledge Platform"). The goals were limited to a target of 15 years, which meant that significant changes ought to have been made by the year 2015. As a result, differently specialized commissions have been established to ensure that the social challenges were met and significant measures were put in place by different countries for their realization. Basically, the goals aimed at ensuring that the basic rights as enshrined in the universal human rights, most basic human rights were realized globally. In 2015, the United Nations General Assembly revised and assessed the Millennium goals and developed 17 goals which became the 2030 agenda for sustainable development (Adelman 15). Consequently, the goals aimed first ensuring that poverty was eradicated, zero hunger, good health universal health and well being, quality education for all, gender equality, clean water and sanitation, affordable clean energy, decent work and economic goal, industry innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible production and consumption, climate action, life below water, life on land, peace, justice and strong institutions, and partnership for the goals (Adelman 17).

For the purpose of this assignment, the focus will be mainly on gender equality, specifically on women empowerment and eradication of poverty. Notably, when the 17 goals were established in 2015, the United Nations set different target performance indicators to ensure that the goals were fully, effectively and efficiently addressed by the year 2030. In order to eradicate poverty, five performance indicators were set. By 2030, the target was to eradicate extreme poverty by making sure that everyone lived above the poverty line, set at $1.25 daily ("Goal 5 .:. Sustainable Development Knowledge Platform"). It also targeted at reducing the proportion of children, men, and women living with poverty, establish social protection system nationally, ensure equal rights to economic resources, and reduce exposure to vulnerability by the poor others ("Gender Equality and Women's Empowerment .:. Sustainable Development Knowledge Platform"). On the other hand, in order to ensure gender equality and empower women and girls globally, different targets were set. They include putting an end to all forms of gender discrimination, elimination of harmful cultural practices, do unpaid domestic work valuable, equal participation to leadership, and ensure universal access to reproductive health. Mainly, women in third world countries have for a long time been discriminated form leadership positions, exposure to harmful cultural practices such as female genital mutilation and early marriages among others ("Gender Equality and Women's Empowerment .:. Sustainable Development Knowledge Platform"). From 2015, a number of measures have been put in place by different countries to realize these targets ("Goal 5.:. Sustainable Development Knowledge Platform"). One of the major steps towards elimination of poverty and empowering women has been the establishment of microfinance's, especially in third world countries.

Microfinance has played a major role in the elimination of poverty in developing countries. In India for example, microfinance programs have been instrumental in investing in women thus creating upward mobility, long-term economic growth and reduced women dependency on men(Gangadhar CH 15). Studies show that empowering women significantly empowers the family. Specifically, access to micro-credit programs has created many opportunities for women and thus reduced the level of poverty (Addai 20). Studies conducted in Kenya on the other hand, access to microfinance programs greatly enhanced decision-making patterns among women and hence women gain more control of household income. Moreover, general economic growth in the societies with the access to these programs has been realized, and thus poverty levels have significantly lowered. Further, access to microcredit has enabled women to access to education (Gangadhar CH 30). As a result, more girls have access to education in marginalized areas. This access has challenged unfriendly cultural practices such as early marriages and FGM ("Women's Empowerment and Microfinance: Key Challenges, Lessons and a Way Forward"). This result is as a result of sensitization of women in the education programs and women are more aware of their rights and their position in society.

Women empowerment has significantly improved gender equity in developing countries. It is Cleary evident that gender inequality has been mainly caused by poverty, especially on women. Poor women who are fully dependant on men have very low decision-making ability in their families. However, with the establishment of microfinance, women have accessed loans to start up a small business which has given them economic stability (Gangadhar CH 30). As a result, they have more say in their family, and thus more equality in the decision making process. Further, empowered women have been able to challenge the status quo in their cultures and hence develop a sense of making something of their lives rather than just getting married and performing domestic duties ("Women's Empowerment and Microfinance: Key Challenges, Lessons and a Way Forward"). There has been an increased desire by women to pursue education engage in constructive investment projects and hence becoming more reliable on themselves (Addai 10). As a matter of fact, most divorced women and widows are at a better position to support their family and children from benefits accrued from the microfinance.

• Elimination of all forms of violence, e.g., sex trafficking. Increased dependency on women.
• Elimination of harmful practices. Improved access to education and hence sensitization on harmful cultural activities such as early marriages.
• Value of unpaid domestic work. Improved decision making in their households.
• Equal participation in leadership. Improved participation in leadership from access to education.
• Universal access to reproductive health services. Access to reproductive health rights such as maternity and hence reduces maternal deaths.
• End all forms of discrimination. Challenge of status quo and cultural norms and customs due to economic empowerment.

Conclusion

In conclusion, the establishment of microfinance has greatly impacted women empowerment globally. It has greatly helped in the elimination of extreme forms of harmful practices subjected to women. Elimination of different forms of violence, the increased value of domestic work, more participation in leadership, improved access to reproductive health services, and reduced different forms of discrimination. The impact of microfinance...