Household power relations and access to and utilization of loans by young women: a case of Brac-Uganda clients in Jinja District

Abstract

Microfinance institutions have been recognised as effective tool for women’s economic empowerment through their accessible loan services. However, household power relations remain a hindrance to this opportunity, especially for younger women. This study set out to examine young women’s experiences in accessing and utilizing loans from BRAC within households, how young women’s access to and utilization of loans affected workload changes within households, and how decision-making within households relates to access to and utilization of loans by young women, and how young women overcome barriers to economic empowerment within the household and the role of micro institutions in addressing the challenges in Jinja District. According to the socialist theory, young women’s labor was viewed as that which is exploited by a duo system of patriarchy and capitalism to benefit men directly and indirectly. Thus, decisions to access and utilize loans are influenced by men to benefit men. A cross-sectional study design in a mixed methods approach was applied and data was collected at once using semi-structured questionnaires; and key informant interviews. Data analysis was done thematically, with themes drawn inductively through the computer-based software Dedoose from the transcripts of the interviews. The study focused on decisions around loan uptake, utilization, and household income generation and distribution. Findings show a correlation between attainments of secondary education by young women (51%) to the high percentage of loan access at 91%. The majority of the young women (71%) indicated an increased household workload, while 8.3% reported a reduced workload. Household decisions for loan uptake depended on the level of education of the young women; where a higher level correlated with individual decision-making and a higher amount of loan and sustainable investment than for those with lower education level. Findings reveal that young women bear major economic responsibilities in their families, making them the ultimate decision-makers in almost all aspects of household decision-making. However, they are constrained by many social, economic, and cultural factors that limit their opportunities to gain any economic or social independence. Unequal household power relations still affect loan access and enhance male influence on loan utilization, especially among young women with lower education. The findings further show that young women, in their subordinate positions, are capable of resisting patriarchal power in complex ways despite public declarations of rural African women as powerless. Young women have adopted various strategies of including men in their business plans for loan access and BRAC provides an opportunity for women to meet, and share ideas through group lending. The study concludes that Microfinance is an avenue for penetrating household male dominance if structural barriers within it are eliminated. The study recommends that group lending rather than lending to individuals who belong to groups can provide a collective decision-making Avenue for women that can outweigh male dominance in loan utilization. The study further recommends research to highlight the perspectives of men considering the negative views young women have of men