Can savings groups promote financial inclusion and reduce poverty / vulnerability in rural areas of Latin America and the Caribbean?
Year | : | 2021 |
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Author/s | : | Verónica Frisancho, Martin Valdivia |
Area/s | : | Poverty and equality |
Frisancho, V. & Valdivia, M. (2021). ¿Pueden los grupos de ahorro promover la inclusión financiera y reducir pobreza/vulnerabilidad en áreas rurales de América Latina y el Caribe? LIMA: GRADE
This document assesses the impact of the introduction of savings groups on the results of poverty, vulnerability and financial inclusion in rural areas of Peru. Using a cluster randomized control trial and relying on administrative and survey records. The researchers find that the proposals are supported by the social networks that exist in rural localities, and use them to identify groups of trustworthy residents to assume the savings and credit obligations that they agree to, but also to legitimize social pressure on those who might want to evade them later. At the same time, the strengthening of groups also serves to improve the social value of their members, especially in the case of women.