| Author | Vanhsy Chindavong |
| Call Number | AIT Thesis no.RD-02-07 |
| Subject(s) | Microfinance, Laos
|
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of
Science |
| Publisher | Asian Institute of Technology |
| Abstract | There are different microfinance approaches are applied in Lao PDR by many donor
projects and programmes. The effectiveness of microfinance schemes very much depends
on the design and mode of operation. This study attempts to assess the two projects which
applied different approaches, solidarity group lending and village banking. One is credit
led and the other is saving led respectively. To compare the initial achievements and the
extent to what people satisfied with the design of these two projects. To measure this the
analysis based on data collected through members' household survey, interview,
observation and discussion with different people who involve in the projects.
The study finds considerable differences in demand for microfinance services between
relatively urbanized and typically rural villages. Therefore, there is a significant difference
in satisfaction with the services provided by the projects between these two areas. People
in urbanized are more satisfied than people in the typically rural villages.
This study concludes that the two approaches, solidarity group financial services and
village banking, are applicable to the current context of Laos. But both seem to be more
suitable for relatively urbanized areas than genuinely rural areas. Reasons for this are that
people in more urbanized areas have more experience in savings and loan taking and also
have more investment opportunities than people in typically rural areas. People need credit
for both production and consumption. In reality, people use much for consumption, even
loans that are formally taken for production purposes. Low-income people need flexible
saving deposit and provision of withdrawal. This study also drawn the emerging benefits
that people are getting from these two projects in term of increased economic security,
increased employment and income, improve housing condition and additional household
assets, releasing from high-interest loans and a positive change in gender relation in the
households.
A set of recommendations for appropriate design for future microfinance schemes in the
context of Lao PDR, has been provided for consideration by the donors and directly
responsible organizations. |
| Year | 2003 |
| Type | Thesis |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Development and Sustainability (DDS) |
| Academic Program/FoS | Rural Development, Gender and Resources (RD) |
| Chairperson(s) | Dale, Reidar |
| Examination Committee(s) | Kyoko, Kysakabe;Wickramanayake, B.W.E. |
| Scholarship Donor(s) | The Norwegian Agency for Development
Co-operation (NORAD) |
| Degree | Thesis (M. Sc.) - Asian Institute of Technology, 2002 |