You do not have to be poor to be in need of good financial services.
All in Case Study
The Birthday Officer
The group’s birthday officer, Lidia spoke confidently about her role in the group telling me, I never learned to read and write, but I have an excellent memory. I never forget a birthday.
Who keeps the money safe? You decide.
How do we keep records? You decide. How does a new person join? You decide. What if somebody leaves? You decide. What do we do with the money? You decide,
Hot issue, and great discussion!
By using her savings to secure her credit union loans, she gained the maximum possible utility from them....
Tea with Money
Imagine a savings group that won’t allow people over forty years old to join. Think this unfair?
Mabel Guevara, Part I: Convincing the Skeptics
I started talking to my neighbors and family .... We all had our own goals: one woman planned to save for Christmas dinner, another wanted to buy a new bed cover, and the children wanted new clothes. It was among family and friends, so we didn’t make loans.
Are Self-Help Groups (SHGs) SGs?
Emphatically “yes” - when members write the group rules and follow the principles of fairness and transparency. And, emphatically “no,” - when group are formed for the purposes of commercial or political interests, or for any agenda not created by group members themselves.
We are so certain that interest must be either related to investment or time, that we neglect to see local interpretations of interest as more relevant to local people.
“Waiting for Rain, Reaching for Mangoes,” a paper by Julie Zollman on savings groups in rural Swaziland is filled with surprises.
“Linking Poor Rural Households to Microfinance and Markets in Ethiopia,” (John Burns and Soloman Bogale). There may be some golden nuggets for those interested in livestock, savings groups, and crop value chains.
Where the Benefits Come From
The more communities have been given free stuff, the less they’re able to benefit from savings groups.