Assessing the benefits of the Village Development Fund Project in rural Thailand : comparison between poor and non-poor households in two villages | |
| Author | Jongkol Para |
| Call Number | AIT Thesis no.RD-07-01 |
| Subject(s) | Village Development Fund Project, Thailand Rural development projects--Thailand |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science in Regional and Rural Development Planning |
| Publisher | Asian Institute of Technology |
| Abstract | The purpose of this study is to assess short term benefits of the Village Development Fund Project (VDF). It aims to compare the impacts on the poor and non-poor households in terms of their performance in management and usage of the loan, and also try to investigate the credit needs of the people. Based on a household survey, this study was conducted in two villages under VDF project in the rural area of the northeast of Thailand. In order to obtain essential information for its analysis, questionnaires and in-depth interviews were applied during data collection. The finding reveals that the poor usually have narrower opportunities to take out loan from the VDF. Even though the fund gives equal opportunity to the members from all sections, the poor still find it difficult to apply for a loan while the poorest of the poor are excluded from the fund. In terms of management, the VDF provides the villagers a chance to manage the fund independently. Government officials mostly act as facilitators and assistants to increase managerial skills. From the findings, most villagers were satisfied with the project. They were proud of their micro-financial management that had accumulated so much money in the fund. The profit was transferred from the fund into the community development activities. The most beneficial aspect of the VDF is that the poor can access more to the financial source without collateral. Moreover, the interest rate is rather lower than other sources which resulted in lesser dependency on informal loans. The villagers also have more occupational options e.g. animal husbandry. However there are some other problems such as some borrowers, especially the poor did not use the loan for the purpose taken, which warranted any actions in fiscal terms. Thus the borrowers had to take loan from other sources to repay, and could never get free from indebtedness. In addition, there was a management initiative through the VDF group to establish a second source of funding accrued from interests to help those who could not repay in time. Nevertheless, this study discovered a constraint of the VDF; the repayment period was rather short which was not appropriate to the borrowers' occupation. And the amount of loan granted was barely sufficient. The weak point is that the follow-up mechanism was poorly enforced. Eventually, the borrowers were drowned in debts. In general, the VDF helps improve the household's economy. Villagers have much money to spend for household consumption, more occupational choices, but families' indebtedness is higher, accordingly. Recommendations for the improvement are that there must be rigorous motivation in community participation to examine and govern the fund. The regulation should be able to facilitate the poorest of the poor in taking out a loan. Moreover, vocational training programs or financial management training should be done. Repayment period should be extended depending on different types of investment. |
| Year | 2007 |
| Type | Thesis |
| 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) | Routray, Jayant Kumar; |
| Examination Committee(s) | Soparth Pongquan;Ahmad, Mokbul Morshed; |
| Scholarship Donor(s) | International Fellowships Fund;the Ford Foundation International Fellowships Program; |
| Degree | Thesis (M.Sc.) - Asian Institute of Technology, 2007 |