Promises kept: Enforcement and the role of rotating savings and credit associations in an economy

Ngina Chiteji

Research output: Contribution to journalArticle

Abstract

Rotating savings and credit associations (roscas) are a popular form of informal finance in developing countries. This paper examines the rosca's ability to enforce its terms of membership and the implications that this has for their existence in an economy. A connection between enforcement costs and the desirability of rosca formation is illustrated using a framework that focuses on the nature of the financial contract that the rosca offers, allowing inferences to be drawn about the likely viability of roscas throughout the development process and the implications this has for debates about financial dualism.

Original languageEnglish (US)
Pages (from-to)393-411
Number of pages19
JournalJournal of International Development
Volume14
Issue number4
DOIs
StatePublished - Jun 19 2002

Fingerprint

rotating savings and credit association
savings
credit
economy
finance
viability
developing world
developing country
ability
costs
cost
enforcement

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Promises kept : Enforcement and the role of rotating savings and credit associations in an economy. / Chiteji, Ngina.

In: Journal of International Development, Vol. 14, No. 4, 19.06.2002, p. 393-411.

Research output: Contribution to journalArticle

@article{754237c786ea41babc073edc2f4ecde7,
title = "Promises kept: Enforcement and the role of rotating savings and credit associations in an economy",
abstract = "Rotating savings and credit associations (roscas) are a popular form of informal finance in developing countries. This paper examines the rosca's ability to enforce its terms of membership and the implications that this has for their existence in an economy. A connection between enforcement costs and the desirability of rosca formation is illustrated using a framework that focuses on the nature of the financial contract that the rosca offers, allowing inferences to be drawn about the likely viability of roscas throughout the development process and the implications this has for debates about financial dualism.",
author = "Ngina Chiteji",
year = "2002",
month = "6",
day = "19",
doi = "10.1002/jid.847",
language = "English (US)",
volume = "14",
pages = "393--411",
journal = "Journal of International Development",
issn = "0954-1748",
publisher = "John Wiley and Sons Ltd",
number = "4",

}

TY - JOUR

T1 - Promises kept

T2 - Enforcement and the role of rotating savings and credit associations in an economy

AU - Chiteji, Ngina

PY - 2002/6/19

Y1 - 2002/6/19

N2 - Rotating savings and credit associations (roscas) are a popular form of informal finance in developing countries. This paper examines the rosca's ability to enforce its terms of membership and the implications that this has for their existence in an economy. A connection between enforcement costs and the desirability of rosca formation is illustrated using a framework that focuses on the nature of the financial contract that the rosca offers, allowing inferences to be drawn about the likely viability of roscas throughout the development process and the implications this has for debates about financial dualism.

AB - Rotating savings and credit associations (roscas) are a popular form of informal finance in developing countries. This paper examines the rosca's ability to enforce its terms of membership and the implications that this has for their existence in an economy. A connection between enforcement costs and the desirability of rosca formation is illustrated using a framework that focuses on the nature of the financial contract that the rosca offers, allowing inferences to be drawn about the likely viability of roscas throughout the development process and the implications this has for debates about financial dualism.

UR - http://www.scopus.com/inward/record.url?scp=0036275574&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0036275574&partnerID=8YFLogxK

U2 - 10.1002/jid.847

DO - 10.1002/jid.847

M3 - Article

AN - SCOPUS:0036275574

VL - 14

SP - 393

EP - 411

JO - Journal of International Development

JF - Journal of International Development

SN - 0954-1748

IS - 4

ER -