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Publication Detail
IDE 2006-01: Organizational Capability of Local Societies in Rural Development: A Comparative Study of Microfinance Organizations in Thailand and the Philippines

This paper examines local forces that influence the structuring of rural microfinance organizations in Thailand and the Philippines. This paper focuses on the capacity of local societies for creating and managing organizations for development. The paper states that: * Governmental and non-governmental agencies usually implement projects with the collective action of local people; * Such projects often malfunction after the outside agencies retreat, suggesting that making organizations is not the same as making a system of making organizations; * The latter is essential to make rural organizations self-reliant and sustainable; * Such a system exists in local societies. The paper compares two rural societies, one in Thailand and the other in the Philippines, and finds that: * The structure of local organizations defines the extent to which local society is able to shoulder the organizing process; * While Thailand has an administrative village as the organizer, the Philippines relies on personal networks; * Being equipped with institutions for decision-making can start and guide the organizing process; * Local administrative bodies (LABs) help outside agencies implement the project over a wider area; * However, LABs are often unable to mobilize a sense of unity and belonging among local people. The paper concludes that: * In local societies, there exist plural coordinating organizations, both exogenous and endogenous, in a multi-layered manner; * The combination of these organizations decides the organizational capability of local society.

PinoyME Foundation
Authors Keywords
Shigetomi, Shinichi; microfinance; rural development;
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Published in 2006 and available in the IDE or can be downloaded as full text Downloaded 691 times since November 25, 2011