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The
study evaluates key components of the Samurdhi Programme’s
savings and credit intervention. They are the group savings
and intra-group credit component, the Samurdhi Bank Programme,
and the credit for microenterprise development programme.
The analysis addresses the following issues: the extent
to which the programme has engendered a savings and credit
culture among participants; the dynamism and sustainability
of Samurdhi’s savings groups and Banks; and, the extent
to which they have reduced the vulnerability of the poor.
The study also looks at the socio-economic impact and sustainability
of Samurdhi’s microenterprise development credit component
(SASANA). Key findings to emerge from the analysis are that
Samurdhi’s group savings and intra-group credit component
and the Samurdhi Bank Programme are functioning as vital
sources of emergency credit for Samurdhi beneficiaries.
The programme also works better in relatively favourable
rural areas rather than in urban areas or rural locations
where infrastructure facilities are very poor. However,
programme sustainability appears to be heavily reliant on
the income transfer component. In contrast, the microenterprise
development credit component has failed in its objective
of promoting the poor to higher income growth paths. The
reasons for this are deficiencies in the programme itself
as well as constraints such as infrastructure bottlenecks
and imperfections in the market for technology. Moreover,
the high rate of default makes the microenterprise development
credit programme completely unsustainable in the long run.
Table of Contents:
- Abstract
- Introduction
- Group Savings, Intra-Group Credit and Samurdhi Banks
- Credit and Microenterprise Development
- Conclusions and Policy Implications
- References
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