ABSTRACT

Although microfinance self-help groups (SHGs) are primarily intended to economically empower marginalized groups in an effort to enhance community development initiatives, they also have other subsequent impacts, such as empowering groups to be more politically engaged. This study investigates the impact of microfinance SHGs on Dalits (also known as “untouchables”) women’s political engagement. It is argued that active local nongovernmental organizations (NGOs) also impact political engagement while promoting microfinance SHGs. As a byproduct of community building, NGOs enable the conditions of minority civic education, information flows, and collective action that subsequently impact the political engagement of marginalized communities. The project utilizes the survey data collected in the Indian state of Rajasthan. By conducting a public opinion survey among Dalits women in villages with—and without—representation quotas, this research is able to examine the relationship between microfinance initiatives and political engagement. The empirical results generally indicate a positive relationship between the Dalit women’s SHG membership and their level of political engagement in the local government. Although, subsequent to the analysis, this relationship was not statistically significant, this study calls for future research in this direction to develop nuance understanding of the influence of microfinance institutions on political engagement.