Less risk with women

Microfinance for women is not just more profitably for banks. It even improves women’s stand in society – not just financially, even physically.

Once I did a presentation on the positive affect of privileging women in the granting of credits. Today I read an even more interesting blog of Jina Moore. She is saying that microfinance programs can also heal rape victims in Congo which extends the positive effects of microfinance for women to a physical level. Therefore, I will briefly highlight some general positions arguing to favor women in microfinance. Afterwards I will try to extend that argumentation to a more social level.

Over the last couple of years we were experiencing one of the biggest economic crises in the history. The worldwide banking system was generally dominated by men. However, biological research by the LMU Munich is showing that men tend to take higher risks when making decisions due to the higher amount of testosterone. More interesting for business people is the McKinsey study “Women matter” from 2008 saying that a high participation of women in management lead to higher business success for companies. Both arguments are not really new. But today I read this amazing blog with the title: Can microfinance programs heal rape victims in Congo? Jina Moore is reporting that that microfinance programs are increasing the social stand of women in Congo. She is saying that women gain more respect, improve their self confidence due to their stronger position in society. But is that really improving the situation of women? I think she points out a really important aspect but I don’t know whether this is enough to help women to really overcome physical abuse. Especially in Congo, it is not really about increasing the self confident of women; it is about resolving the war and its effects to the society. When this is finally over, there is chance of economic growth and equality in the business sector for both – men and women.

5 Responses to “Less risk with women”
  1. isneaky says:

    This is a very interesting view which I haven’t really considered up to today. I believe that micro-credits can improve the status and well-being of anyone especially in countries like the Democratic Republic of Congo which is the second poorest in the world. The question is: What chances do people have, doing business in a country where corruption rules the day-to-day life? I therefore agree with your last statement. By chance I came over a very suitable post by Hanna Rosin in The Atlantic (http://tiny.cc/nckxx). There she highlights the exact issue you are mentioning. The Organization for Economic Cooperation and Development analyzed 162 countries in terms of the influence women have on the economic and political power of the country with the outcome: “the greater the power of women, the greater the country’s economic success”. As a result, Rwanda became the first country that now introduced to heal the war shaken country by electing a majority of women into the parliament.

    It’s great that you mention testosterone, because I think that this really makes a difference. The new ideal business leader isn’t to be the strict commander combining control and power in one person anymore, but rather motivation, creativity, social intelligence and sensitive leadership are becoming the important attributes. I consider this a good explanation why women become more and more successful in performing high-level management positions and why “Women matter”.

  2. thob84 says:

    The view is somwhat thought ‘out of the box’ and makes it therefore interesting to consider. I agree with isneaky that it improves the status and well-being of a person. It gives abused women the chance to be independent again and the opportunity to pursue their own ideas. Nevertheless, it is only a first step on a long way.

  3. diiasg says:

    Very interesting post. It’s uplifting to see the micro-financing program have such a far-reaching (not only in a geographical sense but also in a social sense) effect. There are however always two sides to every story. For instance Indian politicians have successfully regulated the micro-finance sector in their country. Again, making life difficult for those with enough troubles. Here the link to the blog containing the article:


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