Paper

Organizational Capability of Local Societies in Rural Development: A Comparative Study of Microfinance Organizations in Thailand and the Philippines

Rural micro finance organizations: The local forces that influence their structures
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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.

About this Publication

By Shigetomi, S.
Published