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  Topic Overview
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   Added: 23 June 2005
   Updated: 03 October 2005
  KO Overview
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   Added: 23 June 2005
   Updated: 09 September 2005
 
Credit unions    
        
Credit unions are legally constituted not-for-profit co-operative financial institutions chartered and supervised, for the most part, under national co-operative law and created to meet the basic financial service needs of primarily low and middle income citizens who generally cannot obtain these services through the existing banking system. They provide a means to learn the value of regular savings and wise use of credit. They are a form of economic empowerment, based upon an individual's ability to control and manage the financial institution which provides savings, credit and financial management.

Membership eligibility is usually defined in terms of some common affiliation, such as employment or residence. All members are owners of the enterprise and have equal privileges, opportunities and responsibilities. Typically a credit union only accepts deposits from and grants loans to members. All members are equal owners of the enterprise and each has one vote in the election for committee members and the board of directors. Members of these elected bodies serve in an unpaid voluntary capacity.

  
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TitleFailures of Cooperatives
Author/ EditorGalor, Z.
Content Language(s)French; English
Type of DocumentPaper
Abstract / DescriptionIn this paper Zvi Galor discusses and analyzes some features which he believes are behind the failure of cooperatives in general and in Africa in particular. He thinks that fundamental cooperative principles are ignored and they are often mismanaged or taken over by governments or NGOs. Zvi also believes that SACCOs can be a useful tool for development if the credit they can give is complemented by training in financial planning, e.g. profitability calculations and cash flow budgets, although he also emphasises that it will not be possible for all traditional, small farmers to become successful modern ones. Finally Zvi recommends how he thinks SACCO savings and share accounts should be restructured.

KeywordsCOOPERATIVES; SACCOS
CountryAFRICA
Date of Publication/Issue20 March 2005
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Number of Pages5 pp.
  
668 Knowledge Objects - 1024 Members - 83 Topics
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