Microfinance and the rural poor : strategy of Bank for Agriculture and Agricultural Cooperative (BAAC) in Thailand | |
| Author | Suchaya Varamit |
| Call Number | AIT Diss. no.RD-10-01 |
| Subject(s) | Bank for Agriculture and Agricultural Cooperative (Thailand) Microfinance--Thailand Rural poor--Thailand |
| Note | A dissertation submitted in partial fulfillment of the requirement for the degree of Doctoral of Philosophy in Regional and Rural Development Planning |
| Publisher | Asian Institute of Technology |
| Abstract | The Bank for Agricultural and Agrcultural Cooperative (BAAC) was established in 1966, with the mandate of supporting agricultural development. In 2001, the BAAC changed the responsibilities from its primary role of a formal financial institution for agricultural development bank to become a rural development bank and provided microfinance service for the rural poor. The main development activities were launched by the BAAC applying an integrated approach comprising of credit, savings, funeral insurance, debt suspension (DS), debt burden reduction (DBR), community enterprise development program and agricultural marketing cooperative. The main objectives of this research were to study the extent of participation of the rural poor in BAAC; to assess the impact on income, savings and expenditure patterns; and to identify factors explaining BAAC performance on microfinance The research was conducted in the three sub-districts of Dok Kham Tai district in Phayoa province, Northern Thailand. Altogether98 sampled poor housholds of BAAC clients from farm households (FHs) and 72community enterprise households (CEHs). A survey questionnaire was the major data collection technique for this research with the support of qualitaive data collection including observation, interviews and group discussion with local clients and BAAC staff members. There was high concentration of rural poor households from both FHs and CEHs in various BAAC activities provided. There were certain economic impacts on the change of income from both FHs and CEHs, in their savings amount, and in their repayment ability. However, there was no change in their employment of the FHs or enhancing supplementary occupation of the CEHs. Both FHs and CEHs perceived that MIF activities perceived these positive economic impacts particularly from the DS/DBR schemes, occupation rehabilitation and from community enterprise. There was a relationship between the repayment ability of the FHs with the amount of BAAC loan, the cost of crop production, and the amount of annual savings while the amount of repayment of the CEHs was associated with the educational level and the amount of BAAC loan. BAAC had performed favourably in the program implementation largely on the financial activities due to various institutional and economic reasons but its role in executing non-financial activities was rather less effective. This was mainly due to its inexperience in performing these new tasks, its lack of control and accountability over new activities as the bank delegated implementation of those activities to other agencies under Ministry of Agriculture and Agricultural Cooperatives without having joint planning and lack of integration into BAAC financial activities provided to its clients Both general and specific recommendations were given to strengthen the implementaion of development activities of BAAC for both FHs and CEHs in accordance with the implementation of the new development paradigm. Main suggestions were focused on the improvement of program design and implementation and strengthening the coordination with other development agencies in order to increase accountability and control on several development activities provided to enhance the effectiveness of the bank’s operation in response to local needs. |
| Year | 2010 |
| Type | Dissertation |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Development and Sustainability (DDS) |
| Academic Program/FoS | Rural Development, Gender and Resources (RD) |
| Chairperson(s) | Soparth Pongquan; |
| Examination Committee(s) | Routray, J. K. ;Shivakoti, G. P.;Izumida, Yoichi |
| Scholarship Donor(s) | Rajamangala University of Technology Lanna; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2010 |