Banking on community: indigenous credit associations in Eritrea

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Periodical article

Title:	Banking on community: indigenous credit associations in Eritrea
Authors:	Bascom, Johnathan Vander Neut, Laura
Year:	2008
Periodical:	African Geographical Review
Volume:	27
Pages:	23-39
Language:	English
Geographic term:	Eritrea
Subject:	informal savings and credit associations
External link:	https://www.tandfonline.com/doi/abs/10.1080/19376812.2008.9756208
Abstract:	Africans have long-established social and economic mechanisms to cope with large financial demands. This paper explores one such risk-sharing institution - indigenous credit associations (ICAs) - based on primary data collection in 2005 in Eritrea, where ICAs are known as 'ekubs'. The paper compares their institutional design, economic function and social role in three geographical settings - neighbourhoods that comprise the city of Asmara, secondary towns and cities or the periurban settlements on the outskirts of the capital city, and rural villages - and identifies factors that contribute to their functional success. The paper demonstrates that 'ekub' associations are an important form of social capital by which to distribute locally-generated capital, ameliorate poverty, and resolve the economic problem of purchasing indivisible goods. 'Ekubs' also are a key source of community; they build, bridge, and bond Eritrean society by drawing together people of different ages, genders and ethnic backgrounds. Bibliogr., notes, ref., sum. [Journal abstract]