Introduction to Sociology

Slide 6

Fill in the Blanks:

According to the Stephen and Cephas article, access to _____________________ 
leads to __________________- which means the right to food is enhanced; lack of access to ________________________- leads to _______________________
and less access to food.
Choices: 1) improved food productivity, 2) microfinance, 3) microfinance, and 4) low and poor food productivity.
Answers to fill-in-the-blanks: 2, 1, 3, 4.

Slide 7:

One important finding in the article was that entry-level entrepreneurship has not been equally available to women due to a "paternalistic" legal tradition in some African countries that denies women property rights and therefore a standard form of debt collateral (10). Viewing this through the lens of the conflict theory perspective, we can examine how gender inequality affects the access to, and the success of, microfinance loans.
To find out more, read the rest of the article here: The Role of Microfinance - Stephen and Cephas
Slide 8:
While microfinance has been effective in providing viable, long-term solutions to individual poverty, the implementation of such outreach is not without its obstacles.
On a practical level, the area where the program is to be implemented must be reasonably secure so as to allow for a network of functioning markets and for the free movement of producers and consumers. On a broader cultural level, there are deeply ingrained social norms–as well as existing laws–that make it more difficult for some members of society to participate in microfinance than others.
Stephen and Cephas identify some traditions and laws as obstacles to which group of potential entrepreneurs? 

• 
  Male village elders
  
• 
  Women
  
• 
  Prosperous land owners
  
• 
  Aid workers
  

Answer: Women. "Paternalistic" comes from the Latin word "pater," which means father. A paternalistic social norm is one that assumes men should be in charge of things like markets and other forms of social organization. These cultural beliefs also result in property laws that place women at a disadvantage, given that property is a common form of debt collateral. 
Slide 9:

You've examined just a few of the benefits and challenges of microfinance. One major benefit is that it presents opportunities, such as extending education and jobs. It increases employment, as people are more likely to open small businesses that will aid the creation of new jobs. And as you read in the article, it also increases access to food.

Some challenges include unequal access to the loans, and in some cases, community members may take advantage of the loans to cheat money from their neighbors. More volatile economic situations sometimes result in other financial priorities that make it difficult to save money or repay loans. Other problems are poor oversight of the loans or lack of follow-through by organizations. Other criticisms are that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that they fail to empower women, and that they have not improved health or education. Moreover, as the access to microloans is widespread, borrowers tend to acquire several loans from different companies, making it nearly impossible to pay the debt back. The inability to pay back the loans, in addition to increasing inflation rates, causes additional complications.
What do you think about the pros and cons of microfinance? Do you think the pros outweigh the cons? What other solutions might you recommend?