Saving and Borrowing in Rural Uganda

P. Musinguzi and P. Smith

Discussion Paper Series In Economics And Econometrics from University of Southampton, Economics Division, School of Social Sciences

Abstract: Sub-Saharan Africa has languished in recent decades - a period in which countries elsewhere in the world (especially in East and Southeast Asia) have made substantial progress in terms of economic and human development. It is widely recognised that high levels of savings, together with investment in physical and human capital, have been among a number of key factors that have led to such success. Uganda is an economy in sub-Saharan Africa that has shown some promise of success in the 1990s. It has enjoyed macroeconomic stability and a rapid rate of economic growth. However, in some other respects, the country retains features that give cause for concern for future development. Poverty in the rural areas remains widespread, and the domestic savings rate is amongst the lowest in the world. Drawing on the results of a survey carried out in 1997, this paper explores the reasons underlying the persistence of poverty in rural Uganda, and investigates aspects of saving and borrowing behaviour in households. The potential role of microcredit arrangements in alleviating poverty (and in generating a flow of savings) is examined, and the conditions that may favour success in the operation of microcredit schemes are evaluated.

Date: 2000-01-01
View list of references Track citations by RSS feed

Downloads: (external link)
http://www.soton.ac.uk/socsci/economics/research/papers/documents/2000/0016.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:stn:sotoec:0016

Access Statistics for this paper

More papers in Discussion Paper Series In Economics And Econometrics from University of Southampton, Economics Division, School of Social Sciences
Contact information at EDIRC.
Series data maintained by Chris Thorn ().