2. Promising Practices Economic empowerment: providing financial stability through savings Basic financial services geared towards the needs of the poor, savings and loans with small amounts, frequent meetings etc. ”Practicing financial literaccy:” Poor people get a better chance to become accepted by established financial institutions

3. Promising practice: Social empowerment: Savings and loan associations are perceived by members as being a’safe space’ also because of homogeneity of group, therefore can serve as platforms for social development messages. e.g. HIV/AIDS hold the potential to challenge cultural norms and power relations Two legs: LANGUAGE of rights and TOOLS to be come self-dependent

4. Promising practice: Political empowerment Members’ understanding of democracy is fostered through group participation Forum for voicing basic rights and why basic laws are not implemented etc. Group’s daily practice is a ’school’ in democratical practice, ”an alternative structure of interdependency”, pushing for equality of members Provide tools, e.g. management, conducting of meetings

5. Promising practice. Capacity Development of Civil Society Savings and Loan associations can become vehicles for civil society development Particularly when clustered where the focus gets beyond daily management Mediations Push for election of members to gov. councils etc. Resource mobilization Holding authorities accountable for implementation of laws

6. Promising practice Help transformation from service-delivery to savings- led approach Can work in Islamic contexts Can work in fragile/vulnerable situations

7. Challenges Sustainability of clusters and federations Many Indian federations still dependant on some funding and advise even after many years Particularly difficult to sustain ’soft aspects’, e.g. promotion of social agendas (gender rights etc.) Over time some tendency to focus on the narrower financial elements – to survive ’Soft aspects’ to be seen as investments undertaken by the donors, to be transformed into practice before project completion and afterwards less needed?

8. Challenges Fraud and corruption Can be prevented by taking cash out on a regular basis or by increasing transparency through procedures of financial operations, group meetings etc. Reaching the poorest? Savings and loan associations probably most pro-poor microfinance, yet some people are too weak to even join here or are excluded. Basic health and education is still needed, microfinance cannot do everything… Examples of exclusive groups for the weakest, e.g. HIV/AIDS and leprosy. Sustainability? Research needed

9. Key recommendations Savings and loan associations is a promising method to be adapted Relatively simple and cost-efficient Pilots from the South Asian holistic method should be tried out in an African setting, maybe simplified and with a long-term perspective Promoting organisations should not step into the implementing role – the ownership to be with the people

10. Key recommendations Change takes time… lon time horizon needed, best 3-5 years at a time SUPOTH: early start 1988, first Danida support from 1996-, yet moved to new areas every fifth year MMD: early start 1990’s Shigikirana, Burundi from 2008 can go far by that time horizon probably