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WP 37. The Role of a Professional Association in mutual Microfinance: the case of Madagascar
Maria Sabrina de Gobbi, 2003.

This paper describes the creation and evolution of a professional association of mutual financial institutions, A.P.I.F.M., in Madagascar. It analyses the challenges faced by the association and its role in the national microfinance sector.

APIFM gives voice to farmers and micro-entrepreneurs who are members of mutual financial institutions and are part of the mutual movement. Despite the often differing approaches and methodologies adopted by donors and international technical agencies supporting MFIs, A.P.I.F.M. has managed to create a forum for discussion where conflicting institutional interests can be resolved and a common position adopted.

WP 36. How Trustable are West African Mutual Savings and Loan Institutions? An Application of the PASMEC Databank
Francesco L. Galassi, Dominique M. Gross, 2003.

This paper uses a new dataset developed jointly by the International Labour Office and the Banque Centrale des Etats de l'Afrique de l'Ouest on mutual institutions in West Africa Economic and Monetary Union countries to test whether these financial intermediaries are able to offer an attractive alternative to moneylenders for small borrowers. Next to other factors prospective members evaluate the perceived risk involved with membership in a structure based on unlimited liability. Using a trust index we show that most mutual institutions are not attractive in the sense that prospective members must trust a disproportionately high share of members. In the medium term, this leads to under-capitalised, non sustainable financial systems. We also draw conclusions about the sources of this unsustainability and ways for mutual institutions to correct it.

WP 17. The performance of the Lesotho credit union movement: Internal financing and external capital inflow
P. Sparreboom-Burger, 1996.

In Lesotho there are approximately 80 primary credit cooperatives, organized in the Lesotho Cooperative Credit Union League (LCCUL). The credit union movement in Lesotho has received enormous amounts of aid over the past twenty years. Despite all this aid, it currently finds itself in a very sorry state, with only a small proportion of all credit unions still being active and LCCUL on the verge of financial collapse. This report gives an overview of the results of the empirical investigation.

WP 14. The effects of using credit unions as onlending agents for external lines of credit: The experience of the International Credit Union Movement
K. J. Morris, 1995.

The World Council of Credit Unions (WOCCU) is the international trade association of credit unions (savings and credit cooperatives) and similar cooperative financial institutions. Its members are credit union confederations and free-standing leagues. It represents more than 100 million members in more than 90 countries worldwide. Its functions are to represent the international credit union movement to international governmental and non-governmental organizations, and to serve as a venue for communication and coordination between different institutions of the movement.

WP 13. Credit unions as channels of micro-credit lines: The Phlippine case
Dr. M. B. Lamberte, 1995.

The paper by Mario Lamberte forms part of a study on the effects of channeling external funds to the poor via financial cooperatives. Lamberte’s paper presents the findings of a sample survey of 105 credit unions affiliated to two nation-wide federations. The survey focused on the effects of external funding on the growth of credit unions, their resource base and diversity, especially savings mobilisation from members, profitability and loan delinquency. The findings are relevant for governments, cooperative support structures, aid and all other agencies interested in encouraging the emergence of accessible and sound credit unions.

WP 12. Using credit unions as conduits for micro-enterprise lending: Latin-American insights
Dale W. Adams, 1995.

The document provides an historical background on credit unions and microenterprises, followed by an analysis of major issues to be considered before channeling funds through credit unions to small businesses. The paper summarizes the results of programs aimed at developing credit unions in the Dominican Republic and several other Latin American countries In conclusion D. Adams gives guidelines for policy makers who wish to channel funds through credit unions for microenterprises.

WP 11. On the theory of credit cooperatives: Equity and onlending in a multi-tier system — A concept paper
Jan P. Krahnen, Reinhard H. Schmidt, 1995.

In September 1991 the ILO organised a technical consultation with the theme: "The ILO and the Financial Sector". This meeting reviewed a number of issues relevant for poverty alleviation, employment creation and financial sector development.

One of the key issues in this context is whether using financial cooperatives can and should be used as conduits for getting financial resources to the poor. The paper by Jan Krahnen and Reinhard Schmidt provides a theoretical framework concerning the governance structure of financial cooperatives.

WP 10. Expansion of rural financial services: the development of a community-based rural credit union network in the Dominican Republic (1984-93)
J. Poyo, 1995.

In most rural areas, credit unions are still the only source of deposit and credit services, apart from the informal financial market; from the point of view of financial sector development with an equity objective, credit unions therefore deserve to be closely examined. Credit unions can achieve financial self-sufficiency at the primary level over a 5-7 year span, and at the second tier level also, but over a longer period of time; this confirms observations of financial membership organisations in ILO projects in West Africa (PA-SMEC), Madagascar (CECAM), Haiti (Caisses Populaires) and Central America (Bancomunales). Under certain conditions, the mere emphasis on domestic resource mobilization in credit unions will improve management control by members and thus contribute to efficiency; to achieve this objective, technical assistance and training may suffice; in fact, external credit lines may have on balance more detrimental effects.

WP 8. Structures mutualistes d’épargne et de crédit dans l’Union Monétaire Ouest-Africaine (UMOA)
I.F. Camara, 1994.

Cette note de discussion présente les résultats d'une enquête des coopératives d'épargne et de crédit et de caisses villageoises d'épargne et de crédit dans les pays de l'UMOA (Bénin, Burkina Faso, Côte-d'Ivoire, Mali, Niger, Sénégal, Togo). L'objectif de l'étude était d'inventorier ce qui existe, d'apprécier les performances de ces structures et d'identifier les faiblesses.

Le terme «structures mutualistes d'épargne et de crédit» (SMEC) regroupe «coopératives d'épargne et de crédit» et «banques/caisses villageoises». Ces deux types d'organisations se distinguent par le principe d'association (résident villageois vs. membre d'une coopérative), l'étendue et la structuration des réseaux, le rôle de l'épargne (préalable au crédit ou non), l'importance accordée aux coutumes traditionnelles de gestion collective et le degré de formalisation. Par ailleurs, les COOPEC sont plutôt actives en milieu urbain, alors que les banques villageoises ne se trouvent, naturellement, qu'en milieu rural. L'intérêt d'une comparaison était de faire ressortir les caractéristiques communes, les problèmes de fonds dans l'intermédiation financière à petite échelle, indépendamment des choix particuliers de tel ou tel modèle organisationnel.

IFLIP WP01-3. Retooling Credit Unions: The Case of Credit Union Association of Ghana
K.A. Ofei, 2001.

Economic liberalization and the financial sector de-regulation introduced in Ghana were based on the view that a strong and competitive financial sector could make significant contributions towards increasing mobilization of domestic savings in Ghana. The paper examines the Credit Union Association of Ghana (CUA), which introduced as a result of competitive pressures new policies and institutional mechanisms to transform the credit union movement to a new model in order to cope with the new challenges.

Credit Unions and the Poverty Challenge, Extending Outreach, Enhancing Sustainability
Edited by B. Balkenhol, 1999.

This book reviews experiences with refinancing credit unions in several countries in Africa, Asia and the Americas, examining how it affected their capacity to increase members' shares and mobilize deposits. It explores how refinancing facilities influenced the quality of the loan portfolio and profitability, and under which conditions debt finance can lead to sustained growth and better outreach to the poor.