|
STRATEGIES that WORK for poor
communities: SAVINGS AND CREDIT
Jockin calls it,
"
the breath of life, the pulse, the lifeline "
Patrick calls it
"
our family "
Norberto calls it "
the glue that holds communities together "
These are not equivocal images! So why is so much of
our exchange activity devoted to promoting, reviving, refining and extending
savings and credit?
For one thing, it’s a strong idea that transfers well - if you’re looking
for robust processes, here’s one of the robustest.
It’s been carried in people’s hands across the region, and around the
globe. Savings members within the SDI and ACHR networks now number in the
millions, divided into thousands of small, autonomous women-centred,
people-managed groups, with millions of dollars in savings for housing,
emergencies and income generation.
Here are some thoughts on savings and credit from
the experts
(extracted from Face to Face magazine from ACHR / SDI )
|
The Word from the South African Homeless People's
Federation |
|
|
The savings scheme has given us a family. Bank
managers don’t know us. The savings scheme do, they are our people,
they know where I live, they know when my daughter is sick, when I haven’t
got enough to buy potatoes or meat. We are the owners of the process.
You cannot claim a process empty-handed. On a daily basis, people take
control of their own lives.
When savings schemes collect money, they
collect people. We need lots of people. Without big numbers, we can’t
get this kind of momentum, to articulate our needs. Now in South Africa,
we’re engaging government at all levels. We come to these negotiations
with resources in our hands. We have thousands of people and huge
savings.
|
|
The Word from the Cambodian Urban Poor Federation |
|
|
We’ve seen cities abandoned, governments
overthrown, and currencies become worthless over night. It’s no
surprise that we’ve learned to keep our assets in gold or rice. During
bad times, gold can be hidden or run with. Rice can be eaten or traded.
But if we put 5,000 Riels into a gold chain, the money just hangs around
our neck, doing nothing. If we put it into community savings, it gets
busy. It can help start small businesses, help people in a crisis, help
build our communities, help generate more money. Nobody else is gong to
give us what we need. If we want to build good houses, start businesses,
construct toilets or do anything, we need money.
|
|
The Word from the Thai Community Savings Networks
|
|
|
Savings and credit makes room for poor people
to develop their strengths gradually, to make decisions together through
a communal mechanism that is grounded in daily rituals. It’s quick,
simple and relates to the real needs of the urban poor - as defined by
themselves - and creates an on-going process of learning about each
other’s lives. When many small savings groups link to other groups,
these larger networks provide access to greater financial resources and
enhanced clout when negotiating for basic needs. This process has
political implications, since the stronger status of their own networks
enables the poor to deal with the larger, structural issues related to
their problems.
|
|
The Word from the Indian
Savings Federations |
|
|
The need for money is the one thing that binds
all these communities with so many differences. Savings is not one
separate activity, but the breathing that keeps you alive - inhale
savings, exhale credit! Savings can give life to people - it can give
people jobs and houses. What other programme can do this?
One community dollar is equal to a thousand
development dollars! Because that community dollar represents the
commitment of thousands of poor people to their own development. Without
the direct commitment of a savings scheme, people will participate in
any freebie that comes along. But when it’s from your savings scheme,
it’s YOURS. That feeling comes only when you are saving.
Without this, development and improvements have no meaning.
Instead of waiting for the government to
provide development, communities now study their own needs, study what
state policy provides and formulate solutions that work for everybody.
They begin looking at their own resources, and only what they don’t
have they negotiate from outside. Savings is a resource poor communities
put together and use.
|
More on this Site on savings.
GO HERE
for Celine D’Cruz's Overview
of Savings and Credit
A Reflection on Saving and Credit in
Phnom Penh March 1999 for ACHR TAP
Go HERE
for a look at the Philippines Homeless People's Federation Savings and
Credit Process
Check the NEWS
for regular updates on new Urban Poor Development Funds in Cambodia,
Philippines, Laos and new potentials in Vietnam.
In May 1996, People’s
Dialogue (South Africa), SPARC (India) and urban poor community groups in
Asia, Africa and South America met in South Africa to initiate a people’s
process for strengthening grassroots savings and credit schemes.
Savings and credit was recognised by all participating organisations as a
critical tool for the urban poor in their worldwide struggle against
poverty and socio-economic injustice. The participating groups agreed to
come together as a network called Shack Dwellers’ International in
Africa and Slumdwellers’ International in Asia.
The catalogue of documents, reports, and
stories on the SDI site tell the SDI’s story as it grows. HERE
|
|
For Further Readings on
Savings and Credit
See the People’s Dialogue Report of ACHR/TAP Workshop, Bombay.
FROM ENDS TO MEANS
Savings and credit as a means to community mobilisation, people’s power
and housing finance
Located
at the People's dialogue Web Site HERE
|
|
|
