An Empirical Analysis of the Financial Self-Help Groups in Tanzania
In areas with poor access to formal financial institutions, informal organizations often develop to provide financial services to their members. Emmanuel Maliti’s research uses survey data both from those institutions and their individual members to empirically analyze the effects of socio-economic dynamics on cooperation within Village Community Banks (VICOBAs), informal financial organizations recently proliferating in Tanzania.
- What are the factors working for or against cooperation in VICOBAs?
- Does cooperation vary with social and economic inequality among members?
- What is a common set of institutional features promoting cooperation in VICOBAs?
- What level of group size is most conducive to cooperation in collective actions?
A summary of cross-sectional data collected from the Accumulating Savings and Credit Associations (ASCA) in Tanzania was published by Maliti. He assessed the spillover effects of punishments for behaviors unrelated to defaulting on enhancing repayment behaviors of group members in the document: Cooperation in Collective Actions: Enforcement Spillover and Repayment Behavior Within the Informal Savings Groups in Tanzania.
Maliti outlined preliminary findings from his research in the document: Preliminary Research Report: May 2012
Read the Q & A with Emmanuel Maliti about the affects of direct and indirect payments.