Explaining the success of community and informal economies

Abstract

Posits that the disappointing results of external and formal development aid in recent decades have drawn increasing attention to co‐operatives and other community or informal economies which are often attributed a more promising developmental potential due to the shared values of the group members and their identification with collectable goals. Gives the example of the Grameen Bank in Bangladesh which often serves as the prime example of this assumption. Examines how far these factors ‐ which are beyond the scope of traditional economic theory ‐ influence the success of organizations. Concludes that rather mutual social control conditions of a geographically immobile and homogeneous population in a small rural community must be regarded as the basis of the success of community and informal economies.