Addis Ababa University School of Graduate Studies Department of Sociology
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ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES DEPARTMENT OF SOCIOLOGY THE ROLE OF AMHARA CREDIT AND SAVING INSTITUTION (ACSI) IN THE SOCIO-ECONOMIC EMPOWERMENT OF WOMEN IN BASONA WERANA WOREDA BY DAGNACHEW TEREFE JUNE 2019 ADDIS ABABA, ETHIOPIA Addis Ababa University School of Graduate Studies Department of Sociology The Role of Amhara Credit and Saving Institution (ACSI) in the Socio- Economic Empowerment of Women in Basona Werana Woreda A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Sociology By Dagnachew Terefe Advisor Woldeab Teshome (PhD) June 2019 Addis Ababa, Ethiopia Declaration I hereby declare that the thesis entitled: ―The Role of Amhara Credit and Saving Institution (ACSI) in the Socio-Economic Empowerment of Women in Basona Werana Woreda‖, submitted to award of the Degree of Master of Arts in Sociology at Addis Ababa University, is my original research work that has not been presented anywhere for any degree. To the best of the researcher‘s knowledge, all sources of material used for the thesis have been fully acknowledged. Name: Dagnachew Terefe Signature: ______________ Date: June 2019 i ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES This is to certify that the thesis prepared by Dagnachew Terefe, entitled: The Role of Amhara Credit and Saving Institution (ACSI) in the Socio-Economic Empowerment of Women in Basona Werana Woreda and submitted in partial fulfillment of the requirements for the Degree of Master of Arts in Sociology complies with the regulations of the University and meets the accepted standards with respect to originality and quality. Signed by the Examining Committee: Advisor __________________ Signature _______________Date _______________ Examiner ___________________ Signature _______________Date ______________ Examiner ___________________ Signature _______________Date _______________ ii Abstract This study set out to assess the role of Amhara credit and saving institution (ACSI) in the socioeconomic empowerment of women. To this end, the study was conducted on married women credit clients of Debre Berhan Zuria Woreda ACSI’s center to examine the role of the credit service in improving the social and economic condition of clients, and to identify clients’ attitude towards the institution and the credit service. Besides, an assessment has been made on the institution’s credit service provision process and the requirements to become eligible for the credit service, and to identify types of credit service and purposes the credit is rendered. Also, an endeavor has been made to identify local institutions involvement in the socioeconomic empowerment of married women. A concurrent triangulation approach was employed to collect and analyze the data needed to address the forgoing objectives. Accordingly, data were collected from 248 married women survey participants and 14 married women in-depth interviewees. In addition, key informant interviews were conducted with four ACSI experts and two Women and Children Affairs Office officer. The study employed a guiding conceptual framework developed based on literature to articulate and direct its empirical investigation. The study reveals ACSI’s significant contribution in the socioeconomic empowerment of married women clients. The social and economic condition of married women clients has improved due to the credit service. Women’s social and economic empowerment indicators have shown an improvement after the credit service. However, the study disclosed, the institution has faced with problems such as lack of adequate transportation service and shortage of personnel to achieve its mission of improving the economic situation of low income, productive poor people. Also, cultural attitude is among the pillar challenges in the socioeconomic empowerment of women. ACSI provides two types of credit services; individual and group. However, the study shows, the former is not practiced among rural married women clients. The study further reveals married women credit clients have a favorable attitude towards the institution and the credit service. As the study finding has shown, local institutions have also a role in the socioeconomic empowerment of married women with exception of religious institutions. Key Words: ACSI, Married Women, Concurrent Triangulation Approach, Economic Empowerment, Social Empowerment iii Acknowledgments First, I would like to express my gratitude to my Advisor, Dr. Woldeab Teshome for his constructive advice and comments in the course of my study. Second, I would like to express my heartfelt appreciation to all the respondents who were voluntarily participated in the study. I am also grateful for my friends for their help and encouragement until the completion of the study. iv Table of Contents Contents Pages List of Table……………………………………………………………………...IX List of Figures……………………………………………………………………XI Acronyms………………………………………………………………………..XII CHAPTER ONE INTRODUCTION......................................................................................................................... 1 1.1. Background of the Study .................................................................................................................. 1 1.2. Statement of the Problem ................................................................................................................. 4 1.3. Objective of the Study...................................................................................................................... 7 1.3.1. General Objective ..................................................................................................................... 7 1.3.2. Specific Objectives ................................................................................................................... 7 1.4. Scopes of the Study………………………………………………………………………………………………………………………..7 1.5. Significance of the Study……………………………………………………………………………………………………………….8 1.6. Organization of the Thesis ............................................................................................................... 8 1.7. Definitions of Terms ........................................................................................................................ 9 CHAPTER TWO LITERATURE REVIEW……………………………………………………………...11 2.1. Concept and Definition of Microfinance ........................................................................................ 11 2.2. Overview of Microfinance Service in Ethiopia .............................................................................. 13 2.3. Microfinance Service and Women Inclusion in Ethiopia ............................................................... 15 2.4. Microfinance Lending Models ....................................................................................................... 16 2.4.1. Grameen/Group Guarantee Lending Model ............................................................................ 16 2.5. Microfinance and Women Empowerment ...................................................................................... 19 2.5.1. Dimensions of Women Empowerment………………………………………………………………………………….20 2.5.2. Indicators for Women Empowerment through Microfinance .................................................. 22 v 2.6. Theoretical Framework: Paradigms about Microfinance and Women Empowerment ................... 25 2.6.1. Feminist Empowerment Paradigm .......................................................................................... 26 2.7. Empirical Evidences on the Impact of Microfinance service on Women Socio-Economic Empowerment ....................................................................................................................................... 26 2.7.1. Empirical Studies in the World ............................................................................................... 26 2.7.2. Empirical Studies in Ethiopia .................................................................................................. 28 CHAPTER THREE METHOD OF THE STUDY ...................................................................................................... 32 3.1. Research Approach ........................................................................................................................ 32 3.2. Study Design .................................................................................................................................. 33 3.3. Sources of Data .............................................................................................................................. 33 3.3.1. Secondary Sources .................................................................................................................. 33 3.3.2. Primary Sources ...................................................................................................................... 34 3.4. Methods of Data Collection…………………………………………………………………………………………………………34 3.4.1. Sample Survey……………………………………………………………………………………………………………………..34 3.4.2. In-Depth Interview .................................................................................................................. 35 3.4.3. Focus Group Discussion.......................................................................................................... 36 3.4.4. Life History ............................................................................................................................. 37 3.5. Sampling