Strengths, Weaknesses and Evolution of the Peace Corps' 11-Year-Old Savings Group Program in Ecuador

This study aims to document the strengths, weaknesses and evolution of Programa de Ahorro y Crédito (PAC), the 11-year-old Savings Group program implemented by Peace Corps Ecuador.

The data presented in this report is based on 30 focus-group discussions with community bank members, 51 household surveys and 1 structured interview as well as various discussions with Peace Corps staff.

Strengths of PAC include disciplined savings, access to loans, and friendship and support from members. Weaknesses of PAC include lack of transparency, poor management of accounting, and lack of structure in meetings. Recommendations include:

• Strengthen Savings Groups’ ability to manage the meeting agenda steps, accounting and internal rules;
• Develop and widely disseminate a few concrete best practices;
• Develop Savings Group programs that can accommodate flexible financial rules;
• Provide training to Savings Group members on how to open and manage commercial bank accounts as a group;
• Provide training to Savings Groups on how to distribute efficiently and transparently;
• Integrate other development activities such as training that will help members better meet their needs;
• Create Savings Group programs that target youth;
• Develop a replication strategy.