Rebuilding Social Capital in Post-Conflict Regions: Women's Village Banking in Ayucucho, Peru and in Highland Guatemala

Citation:

Bebbington, Denise Humphreys, and Arelis Gómez. 2006. "Rebuilding Social Capital in Post-Conflict Regions: Women's Village Banking in Ayucucho, Peru and in Highland Guatemala." In Microfinance: Perils and Propsects, edited by Jude L. Fernando, 112-132. London: Routledge.

Authors: Denis Humphreys Bebbington, Arelis Gómez

Abstract:

In this chapter we will use examples from two village banking programs, in post-conflict Ayacucho, Peru (with FINCA Peru) and in Highland Guatemala (with the NGO FAFIDESS), to illustrate how the provision of financial services contributed to the rebuilding of such social capital. The experiences of group managed lending schemes, such as the village banks promoted by FINCA International, and traditional rotating savings and credit associations known as ROSCAs, suggest that there is indeed an important relationship between the social dynamic of the group and favorable financial outcomes. Our findings indicate that the more members trust each other, the better able they are to engage in mutual risk-taking and reap the benefits.

Keywords: reconstruction

Annotation:

“The [Foundation for Community Assistance] methodology, based upon principles of self-help and self-management, primarily targets poor women in urban and semi-urban settings...participants are self-selected and may often be friends, neighbors, or relatives and programs often have selection criteria which might include: preference for mothers with children, permanent residence in the community, reputation for honesty, and hard work.” (Bebbington, 114)

“By virtue of their social isolation, poor women are difficult clients to recruit...Situations of conflict pose special problems, particularly when the result is a larger number of war widows...Encouraging members to articulate their personal hardships and dreams is at the center of FINCA’s social empowerment strategy for women...Beyond the emotional appeal of this approach, it helps isolated women extend their social networks with important impacts.” (Bebbington, 119)

“NGOs that are both knowledgeable of the region and sensitive to their clients’ needs will be better able to look for synergism that will enhance benefits to their clients. They will understand the dimensions of the client’s poverty and vulnerability.” (Bebbington, 119)

“However this newly discovered economic power has shifted roles within families often resulting in increased conflict within the family, particularly with spouses, but also with children and other family members.” (Bebbington, 125)

Topics: Class, Development, Economies, Gender, Women, NGOs, Post-Conflict, Post-Conflict Reconstruction Regions: Americas, Central America, South America Countries: Guatemala, Peru

Year: 2006