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Caste Embeddedness and Microfinance: Savings and Credit Cooperatives in Andhra Pradesh, India

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  • Stuart, Guy

    (Harvard U)

Abstract

This paper examines how the introduction of a new set of institutional practices through the creation of new organizations bump up against, but also build on, the existing social structure and practices of the setting in which they are introduced. In this case, the new practices were cooperative governance and financial accounting practices introduced through the medium of cooperative organizations into villages in Andhra Pradesh, by the Cooperative Development Foundation (CDF) during the 1990s. The paper demonstrates how the CDF both built on and challenged the existing social structure of the villages in which their cooperatives developed. In particular, the paper shows that the new institutional rules the cooperatives implemented interacted with the existing caste and gender structure in a variety of ways that included direct conflict, mutual support, and indifference.

Suggested Citation

  • Stuart, Guy, 2006. "Caste Embeddedness and Microfinance: Savings and Credit Cooperatives in Andhra Pradesh, India," Working Paper Series rwp06-037, Harvard University, John F. Kennedy School of Government.
  • Handle: RePEc:ecl:harjfk:rwp06-037
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    References listed on IDEAS

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    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    2. Katherine Rankin, 2002. "Social Capital, Microfinance, and the Politics of Development," Feminist Economics, Taylor & Francis Journals, vol. 8(1), pages 1-24.
    3. Mark Cosson & Marina Delia Giusta, 2004. "The Costly Business of Trust," Development Policy Review, Overseas Development Institute, vol. 22, pages 321-342, May.
    4. Anderson, C. Leigh & Locker, Laura & Nugent, Rachel, 2002. "Microcredit, Social Capital, and Common Pool Resources," World Development, Elsevier, vol. 30(1), pages 95-105, January.
    5. Gaute Torsvik, 2000. "Social Capital And Economic Development," Rationality and Society, , vol. 12(4), pages 451-476, November.
    6. Rafael Gomez & Eric Santor, 2001. "Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 943-966, November.
    7. A. Allan Schmid, 2003. "Discussion: Social Capital as an Important Lever in Economic Development Policy and Private Strategy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 716-719.
    8. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, World Bank Group, vol. 15(2), pages 225-249, August.
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