The global development goals have made foreign aid an essential tool, providing financial, technical, and humanitarian support to nations that experience social and economic challenges. In this context, foreign aid means the international transfer of capital, goods, or services from one country or international organization to another to benefit the recipient or its people (United Nations, 2022). These assists are manifested in different forms, like economic, military, or emergency humanitarian aid in the aftermath of natural disasters (Bali et al., 2020). Foreign aid is essential in advancing women’s empowerment (WE) by tackling the root causes and creating conditions that enable women to participate fully and equally in all segments of society. These are furthered by the governments, international organizations, and non-governmental organizations that contribute to the developmental goals of the recipient countries (Berlin et al., 2023). Hence, foreign aid serves as a tool to address all the challenges in developing countries, which include poverty, health, education, and infrastructure.
Women empowerment is a process by which women realize that the power relationship between genders is unequal and assert their voice to challenge the injustice in the home, workplace, and community (Mengstie, 2022). WE is the term for improving women’s social, economic, and political status. It refers to forming an enabling environment in which women exercise their agency, access opportunities, and meaningfully participate in the decision-making processes at the community and societal levels (Berlin et al., 2023). Sustainable Development Goal 5, which is focused on empowering women and girls, emphasizes the significance of women’s empowerment in advancing society’s general development.
Overview and the Impact on Women’s Empowerment
Foreign aid is a tool of socio-economic development that provides needed resources, skills, and assistance to countries facing poverty and other challenges in achieving sustainable development (Berlin et al., 2023). For instance, the World Bank Board approved more than $364 million in financing to increase girls’ and women’s access to education, economic prospects, and health services. These efforts are meant to strengthen the institutional capacity for gender equality in Western and Central Africa (USAID, nd). It eradicates the gaps, builds infrastructure, and promotes equity, which creates conditions favorable to general growth. WE are facilitated by foreign aid that deconstructs the obstacles that keep women from contributing to and progressing in the economy. Aid interventions seek to shape a world where women thrive, thereby ending the cycles of gender-based inequalities common in many societies (United Nations, 2022). Furthermore, foreign aid fosters international cooperation and peace by acknowledging that collective action is the best way to solve the World’s problems.
Aid projects that focus on women have been more successful in bringing gender equality than those that integrate gender as one of the many objectives. These WE programs are targeted at both individual women and those who are in the quota system. It drives women’s participation in economic development initiatives that contrast with the discrimination they face, which is deeply rooted (United Nations, 2022). Foreign aid also provides empowerment through job creation and income generation. Initiatives such as women-oriented entrepreneurship, women’s cooperatives, and integration of women into public works, infrastructure, and agricultural projects have created economic opportunities for women (Berlin et al., 2023). The International Labour Organization (ILO) has been a key player in funding projects that support women entrepreneurs and cooperatives, thus showing the positive contribution of specific aid to income generation and active community engagement.
There must be strong and continuous financing to obtain women’s empowerment outcomes. In the 2030 agenda of Sustainable Development, stakeholders are willing to make a severe increase in investments to close the gender gap (UNU-WIDER, 2023). Officially Allocated development assistance (ODA) is an essential funding tool for women’s empowerment in developing countries. In the current COVID-19 crisis, it will be crucial to increase support and incorporate gender considerations throughout the crisis response programs. Foreign aid also covers essential social issues that prevent women from actively participating in the economy (World Trade Organization 2022). Initiatives like Micro-Health Insurance for Poor Rural Women, childcare provisions, and health insurance programs aimed at women’s affordability are among the measures to mitigate risks and time constraints. The coordination with the national institutions is highlighted, and the participation of the local actors is underlined (United Nations, 2022). Therefore, the sustainability and success of the empowerment projects beyond the initial interventions are ensured.
Significance of Foreign Aid: Economic empowerment
Empowering women economically is a critical strategic avenue for attaining broader societal objectives of eradicating poverty and inclusive economic growth. Women make essential contributions in all sectors, including entrepreneurship and employment, as well as unpaid care work that bolsters economies across the globe (UNU-WIDER, 2023). This finding from the World Trade Organization (2022) highlights the enormous contribution that Aid for Trade makes towards women’s economic empowerment. The figure is as high as 96%, the proportion of developing countries that acknowledge its potential to address women-specific trade constraints. The emphasis on the education, skill development, and agriculture sectors are the main factors that are critical for women’s economic participation (United Nations, 2022). Notably, 92% of developing countries consider women’s economic empowerment as part of their development strategies (World Trade Organization 2022). Amongst the most important is that 83% of donors actively fund projects that target women’s economic empowerment. The attention to increasing trade capacity and training women entrepreneurs through training programs is evidence of the dedication to creating inclusive and sustainable economic growth.
The other central concern in foreign aid is women’s education and skills development. Aid organizations have done this by ensuring that women are equipped to participate in the workforce as equal members through investing in educational programs (Bali et al., 2020). Such strategic investment has laid a strong foundation, making it possible for women to follow different career paths, go into business, and participate in economic activities that were hindered by educational and skill-related barriers.
Women have struggled to access financial resources to initiate and expand their businesses for many years. However, the positive news is that foreign aid interventions today have programs that give women access to credit, grants, and financial literacy training (United Nations, 2022). For example, Aid for Trade programs have contributed to economic growth by creating jobs and increasing income among women (UNU-WIDER 2023). These programs offer employment opportunities to women, hence the rise in individual and collective incomes and the promotion of economic development at individual and community levels.
Incorporating women in global trade through Aid for Trade initiatives is a good way of enhancing their economic opportunities. Female entrepreneurs interact with global value chains, international markets, and industries with significant global influence (UNU-WIDER, 2023). Trade for Aid programs also focus on skill development, knowing that global trade participation is possible only with specific skills. It was seen in training women to be competitive in the international business.
Microfinance Initiatives
Microfinance institutions (MFIs) are the leading players in offering these services since they typically target marginalized groups, women entrepreneurs, and those without collateral or stable credit history. Microfinance is a means for people and communities to elevate themselves to a better life by furnishing them with the financial tools to get out of poverty and generate income to sustain themselves (United Nations, 2022). The “micro” in microfinance refers to the small-scale financial transactions that can lead to the empowerment of borrowers. UNU-WIDER (2023) states that 70% of low-income people worldwide are women. Microfinance institutions (MFIs) usually focus on women, and the proportion of female clients in the poorest microfinance clients is as high as 85 percent. Microfinance is a vital contributor to the empowerment of women, which gives them confidence, autonomy, and the ability to influence community and household affairs (World Trade Organization 2022). The Microcredit Summit Campaign Report noted that over 3000 microfinance institutions served 133 million clients with microloans. Of these clients, over 92 million were among the poorest, with 85% being women.
The study by Mengstie (2022) revealed that microfinance has benefited women’s economic empowerment, especially in Ethiopia. Microfinance has indeed significantly improved the economic well-being of women in different ways. The findings reveal several factors that profoundly impact women’s economic empowerment via microfinance. These factors include age, marriage, education, credit amount, and number of training sessions (Bali et al., 2020). Microfinance services, in particular, have successfully increased women’s independent income, asset ownership, and monthly savings. The research further highlights the role of microfinance in promoting women’s entrepreneurship development and broader business exposure.
In the broader context of women’s economic empowerment, microfinance has proved valid by supplying financial services, including credit, savings, and training. This power is not limited to economic aspects but also affects women’s decision-making roles in their families and communities (World Trade Organization 2022). Microfinance has been proven to be a tool for overcoming barriers women face in accessing traditional financial services, developing women’s entrepreneurship, and improving socio-economic status (Mengstie, 2022). It is consistent with the larger body of literature on microfinance and women’s empowerment, which illustrates the gains beyond economic factors (Maruta et al., 2020). This research provides knowledge of the specific components of microfinance that yield the effective economic empowerment of women, which are helpful for policymakers, practitioners, and researchers in the development sector.
Although microfinance has yielded positive results, caution is required to avert the negative ones. Women have little say in their loans, with male family members making the decisions (USAID, nd). Disparities in literacy, property rights, and social attitudes are obstacles to the effects of the intervention beyond the immediate household (United Nations, 2022). MFIs could also concentrate less on women as they move upmarket, focusing on the need to continue to reach women.
Income-Generating Projects
Income-generating projects bring income to individuals, households, communities, and organizations. They are frequently implemented to advance economic growth, poverty alleviation, and self-sufficiency (USAID, nd). Income-generation projects include small-scale businesses, agricultural enterprises, crafts production, service-based enterprises, and microfinance (United Nations, 2022). These projects have been demonstrated to be a significant tool for women’s empowerment, as illustrated by the example from the Komondjari Province in Burkina Faso (Syhanath, 2020).
Economic empowerment is an excellent asset for resilience and stability in situations where women are more susceptible to conflict-related stressors (United Nations, 2022). This training on income-generating activities, for instance, the production of soumbala, a spice made from the seed of the nere tree in Burkina Faso, enables women to acquire the necessary skills that make them sustainably generate income (Syhanath, 2020). Through the diversification of techniques, which use locally available raw materials like peanuts and soybeans, the economic capacities of communities are increased, and resourcefulness and creativity are promoted (USAID, nd). The outcomes reveal a rise in weekly profits, which indicates these projects’ power in women’s economic independence.
The economic benefits of empowering women through income generation projects are limited to their empowerment but also have broader social implications. Women become active income earners, enhancing self-esteem and self-reliance (Maruta et al., 2020; Syhanath, 2020). Adjaratou’s narrative, displaced internally, is a powerful reminder of the transforming effect on an individual’s life as it showcases the newly gained ability to provide for her family on her own (USAID, nd). Furthermore, women’s income and economic engagement improve their community status, enhancing their voice and influence.
Social Empowerment
Social empowerment for women means helping women take charge of their lives, make informed decisions, and participate with men equally in the social, cultural, economic, and political spheres(Maruta et al., 2020; Mengstie, 2022). It covers different areas such as education, healthcare, employment, resources, decision-making, and community participation (Bali et al., 2020). It promotes gender equality and women’s rights, an atmosphere where women are respected, valued, and treated as equals (Sharma, 2020). The empowerment consists of defying stereotypes and discrimination that restrain women’s success. It encompasses upholding positive attitudes toward gender diversity and inclusivity.
Education and Skill-Development Programs
Foreign aid plays a huge role in the social empowerment of women, specifically in education and skill-building programs (United Nations, 2022). Education is one of the significant ways foreign aid empowers women by sponsoring educational initiatives (Maruta et al., 2020). Education for women is paramount for their social development because it gives them the knowledge and skills required to be actively involved in society. Foreign Aid is an avenue through which educational infrastructure is built and improved. Such plans create more significant opportunities for women to join formal education and career training centers (Mengstie, 2022). Scholarships and financial aid offered through foreign aid programs help eliminate financial barriers so that more women can access higher education and vocational training.
Besides formal education, the aid often targets women in skills-building programs designed explicitly for them. These initiatives mainly concentrate on improving practical skills needed for economic self-sufficiency (Sharma, 2020). Vocational training in various areas, including entrepreneurship and technology, equips women with skills to join the workforce without fear. Through promoting a continuous learning and skills development culture, foreign aid helps overcome stereotypes and allows women to choose from diverse career paths (Mengstie, 2022). Socially empowered women could be the change agents within their communities, championing gender equality and challenging the traditional norms.
Healthcare Initiatives
Maternal and reproductive health programs funded by foreign aid to eliminate health disparities and gender-sensitive health services have been achieved. Women can be empowered to make informed decisions about their bodies through access to family planning resources and reproductive health education (Maruta et al., 2020; Sharma, 2020). It creates a sense of independence. Furthermore, international aid promotes projects focusing on women’s health problems, such as maternal deaths, nutrition issues, and infectious diseases, which helps to improve the overall community health and well-being.
Foreign aid helps set up healthcare facilities in those areas where women are either in remote or underserved areas so that women have access to essential medical services. It includes opening clinics, training medical staff, and distributing vital medications (Maruta et al., 2020). Through the solution of healthcare disparities, women’s healthcare is about their physical well-being and social and economic empowerment. Healthy women are better positioned to participate in education, work, and community activities, thereby breaking the vicious cycle of poverty and bringing about development in society as a whole(Mengstie, 2022).
Foreign Aid on Political Empowerment
Women’s political empowerment is about attaining gender equality in political leadership and governance to create more inclusive and democratic systems (Mengstie, 2022). Women have been excluded from political spheres in most parts of the World for many decades. This exclusion limits them from getting involved in decision-making (Bali et al., 2020). Mengstie’s (2022) research indicates that foreign-aided programs strive to demolish these barriers. Through Foreign support, women can access financial funding, leadership training, and advocacy efforts on the political ground.
Women’s empowerment is a significant problem of economic growth in many countries globally. Ensuring the representation of women in the designated institutions in the same proportion as that of men is paramount. It is where the integrity and legitimacy of legislatures, national assemblies, and local administrations can be established (Bali et al., 2020). Nevertheless, although females account for almost half of the World’s population, they form less than 21% of the legislators. The United Nations Development Programme (UNDP) works with governments worldwide to fight unfair laws making. The organization guides and enhances gender equality in the policymaking process. It does this by developing structures and strategies to empower women and women’s political engagement and gender balance (Mengstie, 2022). UNDP has helped to create such systems in many countries, realizing their vital function as a tool for empowering women as parliamentarians.
Financial constraints are the hurdles to women’s empowerment in politics. For instance, in the latest qualitative study, the United Nations (2022) explores the effects of occupation and revenue on women’s engagement in higher political spots in Iran. The research found that scarce financial resources were the structural impediment to Iranian women in top governmental positions. (Bali et al., 2020). Monetary resources offer strength for successful campaigns. Therefore, foreign aid programs improve women’s political and leadership skills (Mengstie, 2022). Through this support, they develop courage and feel motivated to participate in lawmaking and decision-making procedures. UNDP is well equipped with information on the political context and the extent of its programming to react smartly to guarantee that policy advice forms on astute political examination (Sharma, 2020). UNDP strives to improve the number of nations with initiatives to develop women’s political participation in democratic procedures and avert violence against women in political affairs.
Case Study
The leading cause of the aid program’s success in Laos, as observed in the case study, is that it promotes gender equality and women’s economic empowerment (Mengstie, 2022). The Australian development program successfully worked with the Lao government to ensure its priorities aligned with the national development objectives and gender mainstreaming (Syhanath, 2020). The aid program demonstrated the depth and breadth of women’s problems and needs in Laos through community-based small-scale enterprises support to large-scale government investments.
The case study demonstrates the effectiveness of the targeted and proactive steps taken in line with the lessons learned. To illustrate, the P2P pilot project that provided women with interest-free electricity connection loans proved effective (Sharma, 2020). By introducing gender-responsive eligibility criteria, the program significantly increased the electrification rates in female-led households (Syhanath, 2020). These tangible outcomes validate the program’s success in addressing gender-specific issues, and women’s economic empowerment in Laos is significant.
Challenges and Limitations
Although foreign aid programs aim to benefit people experiencing poverty, they are often confronted with several problems and limits. A fundamental problem is that the money might be misused in a different place (Bali et al., 2020; Maruta et al., 2020). Aid is misused through corruption, lack of transparency, or inefficient governance. This results in the intended beneficiaries needing assistance (Syhanath, 2020). Bad management limits aid programs’ success and hinders their ability to produce actual development sustained in the long run.
Another challenge lies in the socio-cultural and political environments of the countries that are recipients of aid. Local resistance may emerge if the program needs to be in sync with its customs, values, and governance systems (Mengstie, 2022). Likewise, political instability and conflicts within the country also block aid delivery (Berlin et al., 2023). Besides, dependency problems are the central issue of foreign aid programs, unlike foreign aid, which is not designed to promote self-reliance and capacity-building of the recipient states. It results in a cycle of reliance on external aid (Berlin et al., 2023). It goes against the principle of sustainable development because countries become too dependent on the aid that will always continue (Syhanath, 2020). The short-term impact is good, but promoting self-sufficiency is more critical while implementing the foreign aid program.
Strategies for Enhancing Foreign Aid Programs
The effectiveness of aid programs aiming at women’s empowerment requires a multidimensional approach considering economic, social, political, and legal factors. Female entrepreneurship should be economically empowered through financial resources and capital (Syhanath, 2020). It is about establishing platforms that enable women to obtain loans and technology (Bali et al., 2020). Building women-owned businesses, like small and medium-sized businesses, contributes to economic activities (Maruta et al., 2020). It breeds self-reliance and promotes sustainable development. In addition, infrastructural and communication systems in the countryside should be improved to facilitate the sharing of information (Mengstie, 2022). These programs increase women’s participation in economic activities.
The support gives an atmosphere that encourages women and girls to be involved in community development and decision-making (Syhanath, 2020). The projects should be set up to respect the importance of women’s ideas and the role of women in forming local development initiatives (Berlin et al., 2023). Such a plan intends to create awareness, change the way of thinking, and promote equality (Syhanath, 2020). Enabling women’s groups provides women with a way of raising their standard of living.
However, enhancing women’s involvement in decision-making at the home and community level is another crucial step (Mengstie, 2022). Efforts should concentrate on reforming the existing gender status and giving women equal rights. Like men, women must also be entitled to the resources and political spaces (Syhanath, 2020). The fund should be geared towards advocacy and policy planning to create an atmosphere for women’s political participation (Bali et al., 2020). Women’s political empowerment is a process that involves the acknowledgment of agency and avenues of leadership development. Thus, we need to build a conducive environment where women can freely voice their views and be part of the decisions that affect their lives.
Conclusion
This research offers a complete insight into the effectiveness of foreign aid on women’s empowerment. The study displays the essence of aid agendas in economic, social, and political empowerment. Foreign aid aims to promote economic self-reliance through entrepreneurship and financial inclusion. On a broad level, foreign aid addresses social inequalities in healthcare and education. Thus, foreign support is fundamental in eradicating structural obstacles. It helps in promoting women’s political ambitions. Despite the positive outcomes, several challenges hinder its efficacy. Corruption, cultural resistance, and dependency are the main issues that ruin foreign aid initiatives. In the future, the research should focus on the sustainability of empowerment initiatives and incorporating technology. In general, women’s empowerment is 0a strategic investment in developing societies. Empowered women play a significant role in economic growth, community development, and social stability enhancement. The foreign aid funds’ implementation of microfinance initiatives, income-generating projects, and educational support have proved effective in women’s economic independence, health, and decision-making today.
References
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