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

Ngina Chiteji

Research output: Contribution to journalArticle


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
Issue number4
Publication statusPublished - Jun 19 2002


ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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