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Master Thesis

Informal rural credit schemes and their impact on rural livelihoods in Kabarole district, Uganda: a network approach

Abstract : The major aim of the study was to analyze how social network relations can be used to understand the contributions of IRCS to a better quality of life in Kabarole district, Uganda. The assumption of the study is that credit can be a catalyst to a better life in the rural areas by enabling farmers and rural artisans to purchase inputs, hire labour, and acquire basic necessities. Secondly, that a vast majority of the rural poor in most developing countries have limited access to credit services in order to improve their livelihoods. In most times, they have had to resort to the informally constituted credit schemes through a social network relation that act as a buffer in the absence of the formal credit sector. Hence, the network analysis in this study is used to contextualise the development, formation, operation and impact of informal rural credit schemes (IRCS) on rural livelihoods.
The study design was a cross sectional survey on the IRCS activities in rural areas. The conceptual concern of this study is network analysis. The model of analysis proposed assumes that social network relations in form of IRCS flourish where there are people who have similar interests, are close knit friends, neighbours, or village mates, with somewhat same resource base.
The major findings of the study indicate that socio-cultural contexts of the people greatly influence the nature and form of social network relations created. Membership to informal rural credit schemes is based on age, sex, and marital status and socio economic statuses in the community. It is also' possible, then, that people will make new friends from informal credit schemes as to further their social network ties. In most times, the groups and/or associations formed have been used as a social insurance against problems that are likely to arise. The findings also indicate that the people to improve the well being in the rural areas have used IRCS. The improvements include a good diet, health care; construction of iron sheet roofed houses as well as buying household items in the homesteads.
The most salient conclusion is that informal rural credit schemes can be tapped for poverty alleviation programmes. These can be of immerse contribution where people have united basing on the social network relations that are based on contractual obligations in their endevour to fight poverty. Most times, IRCS network relations are demand driven rather than supply driven.
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Submitted on : Tuesday, January 26, 2016 - 2:19:04 PM
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  • HAL Id : dumas-01262241, version 1



Andrew Ellias State. Informal rural credit schemes and their impact on rural livelihoods in Kabarole district, Uganda: a network approach. Humanities and Social Sciences. 2000. ⟨dumas-01262241⟩



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