No Giveaways

Dependency kills innovation and restricts the viral spread of ideas. Alfred Hamadziripi, the Zimbabwean director of the CARE Village Savings and Loan Association (VSLA) program, told me of the disastrous first months of the program in his country. Each group received a matching grant equivalent to the amount they saved. The groups saved, received the match, and disbanded. Their motivation was to receive a handout, not the disciplined business of mobilizing and managing their own savings. CARE dropped the matching requirement in Zimbabwe, and the number of groups soared. In Saving for Change, the “no-giveaway” rule also means that groups pay for accounting forms and cashboxes. If there are no giveaways, those who choose to join groups fully recognize that the eventual success (or failure) of the venture is entirely in their own hands.