Savings Groups: The Village Fund Management Model Used in Isan to Develop Community Economy

Abstract

AbstractThis is a qualitative investigation to describe the management of village savings groups in North Eastern Thailand and analyze how this management helps strengthen local communities. 120 informants from six purposively selected communities in North Eastern Thailand were studied using participant and non-participant observation, structured and unstructured interview and workshops. The results show that village savings groups emerged as a result of community poverty. Members contribute to the fund by making regular subscription payments, which are supplemented by a revolving fund from the government. Members may use the fund in times of financial difficulty or emergency. The fund committee is elected by village members and is responsible for the day-to-day management of finances and fund-raising activities. The success of the village savings groups is in restoring a sense of community spirit, togetherness and mutual assistance to North Eastern Thai communities, which had previously been lost in the climate of national economic and social development.