Bargaining with Poverty: An Empirical Review on Some Rural Women in Bangladesh Faraha Nawaz Department of Public Administration, University of Rajshahi, Bangladesh KEYWORDS Microfinance. Group Lending. Equality. Power Relation. Socio-economic Development ABSTRACT The purpose of this paper is to explore a selection of initiatives being used to address the poverty being experienced by some of the most marginalized communities in Bangladesh. The paper demonstrates that concerns relating to impoverishment can be challenged by the advancement of microloans offered by NGOs, alternatively known as group based lending programs. It also aims to analyze the effectiveness of microloans in transforming the lives of marginalized women and bridging the gender gap that currently exists in rural Bangladesh. Both primary and secondary data have been collected to meet the fundamental needs of the current study. The findings of the study suggest that irrespective of some reported limitations, in certain circumstances microfinance programs have had a positive impact and have increased women’s economic independence and their position in society. Address for correspondence: Scholar in the School of Social and Policy Studies, Flinders University, Australia 1. INTRODUCTION Bangladesh is characterized by poverty and inequality. Approximately half of the total popu- lation of the country is women and males domi- nate the patriarchal society. Many women are the victims of violence, their access to positions of influence and power is limited, their occupa- tional choices are narrower, and their earnings lower than those of men; and they have to struggle to reconcile activities outside the home with their traditional roles. The attitude and the stereotypical values are responsible for the domi- nation of the women by the men. The need for empowerment of women, especially those in rural areas has emanated from the harsh social scenario of the country (Goswami 1998: 45). Since Bangladesh is a rural based country, the overall development of the nation is not pos- sible without progressing the economic and so- cial development of rural women in Bangladesh (Sultana 2006:1). With the majority of the women in rural Bangladesh living in abject pov- erty, only a few of them have the opportunity to access various types of rural enterprises that can help them to break through their inhumane eco- nomic conditions. (Ullah 2003:21). The Government of Bangladesh is faced with numerous challenges but the institutional mechanisms to deal with these challenges are limited. This situation has fostered the emer- gence of Non Government Organizations (NGOs) who have provided services to assist Bangladesh to address two basic visions i.e. poverty alleviation and women’s empowerment (Begum 2003:5). The emergence and growth of the NGO sector is a significant phenomenon from the standpoint of development in Bangla- desh and it is anticipated that approximately 45,000 NGOs are registered through the Min- istry of Social Affairs (Gauri and Galef 2005 World Bank 2006 cited in Siddiquee and Faroqi 2009:248). This sector has earned its own identity due to its provision of innovative programs such as poverty alleviation, gender equity, women’s empowerment, policy advocacy, education, health, family planning, environmental protec- tion, voting rights, disaster management etc (Begum 2003: 1). NGOs in Bangladesh are also well known globally for innovating microcredit programs. Estimates show that microcredit is now used by 37% of Bangladeshi households as well as 60% of the poor households (World Bank 2006 cited in Siddiquee and Faroqi 2009: 248). NGOs have emerged as a ‘third sector’, because neither the Government nor the mar- ket has actually succeeded in providing essen- tial services to the vast majority of the poor (Begum 2003). Among the various programs launched by NGOs, microfinance is regarded as a develop- ment model at a world-wide level but despite this global renown, it is not free from criticisms. The debate and controversy has been especially pronounced when the impact of microfinance on women’s self-development is taken into con- © Kamla-Raj 2013 Stud Home Com Sci, 7(2): 87-94 (2013)