Rotating Credit Associations Research Articles

The Rotating Credit Association: A "Middle Rung" in Development

The building up of a variety of institutions, serving the purpose of promoting individual savings, and organizing them and making them fruitful to the saver and to the community, should be given a high priority in every development plan. To be effective, the institutions have to be adapted to different individual needs and possibilities and must fit into the community patterns; they must aim at encouraging planned and "goal-directed" savings. Even if, at least in the beginning, the financial results would not constitute more than a trickle of new capital disposal, the effects in rationalizing attitudes and mobilizing ambitions might be crucially important. --Gunnar Myrdal, in An International Economy (p. 360)