In the last 15 years, savings-based community mobilization and organization have grown to maturity. In many nations, these activities have gone from being small initiatives to major programmes reaching thousands of citizens. This report summarizes the discussions that took place at a meeting in Thailand in November 2007, which drew together community participants from 20 countries (Cambodia, Lao PDR, Vietnam, Indonesia, Fiji, Sri Lanka, Philippines, Nepal, India, Mongolia, Pakistan, Thailand, South Africa, Tanzania, Zambia, Uganda, Namibia, Zimbabwe, Malawi and Kenya). The approach being promoted by the groups attending this meeting represents an important alternative to conventional poverty reduction programmes, one that demonstrates that the solution to complexity is not to isolate a few simplistic interventions but, rather, to invest in groups working at a local level who know their local situation and who are clear about their development priorities. The discussions explore the ways in which community organizations are using savings and loans to create new development.

The experience of all participants is that community-managed savings and credit is a key ingredient in the struggle of low-income citizens towards better lives, better incomes, more secure housing and more healthy settlements. Community groups without savings can certainly link together and organize – and there are many examples of what has been achieved. But, as this report elaborates, with savings and loans at the core of the process, organized communities have both money and power – those two most essential ingredients for improving people’s lives. This report illustrates both the diversity of approaches to savings and credit and the ways in which savings-related activities have led to numerous interventions across a spectrum of development needs.

The workshop began with a presentation on the experience of the Community Organization Development Institute (CODI), a Thai government fund that hosted the meeting. Thailand is a country where community savings have been institutionalized and where 90 per cent of all urban and rural communities now have active savings groups. CODI uses savings-based mobilization as the basis for the upgrading of thousands of low-income settlements across towns and cities in Thailand. Local finance is blended with state subsidies in order to improve housing and access to basic services and to secure tenure. As described by local community leaders, community-led savings also catalyzes a range of other activities, including community businesses and welfare activities.

Presentations by the African movements highlighted the growth in federations of savings schemes. By 2007, nine African countries had established federations that were actively working to support their savings group members. In seven countries, groups have been successful in negotiating for land and the provision of basic services. The country presentations highlighted their achievements in negotiations with the state (in some countries) and the depth and breadth of savings activities. Many savings schemes practice multiple savings, with separate funds for emergencies, health needs, income generation and housing improvements. Groups also spoke of the creation of regional funds within nations, to decentralize fund management operations and strengthen local ownership.

In contrast, many of the Asian groups are long standing, and some have been saving for more than 20 years. Many different examples of savings groups throughout Asia were presented at the meeting. Some had started out like banks and microcredit institutions; others had begun because of evictions and housing. Some of those that were originally microcredit organizations have now moved to being building federations. The Asian participants demonstrated the breadth of approaches and interests with groups that have evolved differently, in part depending on their city and national contexts.

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