Impact of savings groups on the lives of the poor
Author(s) -
Dean Karlan,
Beniamino Savonitto,
Bram Thuysbaert,
Christopher Udry
Publication year - 2017
Publication title -
proceedings of the national academy of sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.011
H-Index - 771
eISSN - 1091-6490
pISSN - 0027-8424
DOI - 10.1073/pnas.1611520114
Subject(s) - microfinance , empowerment , consumption (sociology) , low income , business , intervention (counseling) , impact evaluation , financial services , economic growth , demographic economics , randomized experiment , economics , finance , psychology , sociology , medicine , social science , pathology , psychiatry
Savings-led microfinance programs operate in poor rural communities in developing countries to establish groups that save and then lend out the accumulated savings to each other. Nonprofit organizations train villagers to create and lead these groups. In a clustered randomized evaluation spanning three African countries (Ghana, Malawi, and Uganda), we find that the promotion of these community-based microfinance groups leads to an improvement in household business outcomes and women's empowerment. However, we do not find evidence of impacts on average consumption or other livelihoods.
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