By Lamia Karim

In 2006 the Grameen financial institution of Bangladesh gained the Nobel Peace Prize for its leading edge microfinancing operations. This path-breaking research of gender, grassroots globalization, and neoliberalism in Bangladesh appears seriously on the Grameen financial institution and 3 of the major NGOs within the nation. Amid euphoria over the advantages of microfinance, Lamia Karim bargains a well timed and sobering point of view at the sensible, and doubtless unsafe, realities for bad ladies inducted into microfinance operations.

In a chain of ethnographic circumstances, Karim exhibits how NGOs use social codes of honor and disgrace to form the behavior of ladies and to extra an schedule of capitalist growth. those unwritten rules subordinate terrible girls to a number of degrees of debt that frequently result in elevated violence on the loved ones and group degrees, thereby weakening women’s skill to withstand the onslaught of industry forces.

A compelling critique of the connection among strong NGOs and the financially strapped girls beholden to them for capital, this publication cautions us to be vigilant concerning the social realities in which ladies and loans circulate—realities that regularly have hostile results at the lives of the very girls those operations are supposed to help.

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Extra info for Microfinance and Its Discontents: Women in Debt in Bangladesh

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Zia, as he was called, was charismatic and was considered a leader who had played a decisive role in nation building. 27 In a country that is 80 percent agrarian, he understood that his base had to be the rural population. He substantially solidified rural support through elections of the Union Councils in 1977. Officials elected to these bodies are responsible for the allocation of resources within their administrative units, and Zia’s approach brought rural elites into resource sharing at the local level.

In order to manage the inflow of foreign funds to this sector, the government established the NGO Affairs Bureau (NGOAB) in 1990. The following chart illustrates the phenomenal growth in this sector in Bangladesh. At its inception in 1990, the NGOAB approved eight projects for a total of TABLE 1. Flow of foreign grant fund through NGO Affairs Bureau. At a glance, since inception and up to August 2009. 66 15,663 The Structural Transformation of the NGO Sphere 5 $372,306, and the number of registered NGOs stood at 347.

In exchange for credit and other services, NGOs regulate their clients’ habits and behaviors through complicity in their programs rather than through coercion. Yet, on another level, NGOs represent morality in development because of their work with the disenfranchised of society— poor people, women, marginal farmers, and indigenous people. 7 The above statements are strikingly true of Bangladesh. In Bangladesh, the state and NGOs have developed in parallel and parasitic structures of dependence on Western-aid organizations.

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