Beyond Financial Access: Village Savings and Loan Associations and Women’s Empowerment in South Sulawesi
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Abstract
Women cocoa farmers in Indonesia face economic vulnerability and limited access to formal financial services, constraining their decision making power and economic agency. This study analyzes the multidimensional role of VSLAs in empowering women economically and socially in South Sulawesi, Indonesia, moving beyond conventional understanding of VSLAs as mere financial tools. A mixed methods case study using Mid Term Evaluation data from the Women Economic Empowerment Program, comprising surveys with 216 households and 34 focus group discussions and key informant interviews. Data were analyzed thematically and through descriptive statistics. VSLAs demonstrated impact across multiple dimensions: (1) Economically, among female respondents, 64.2% reported VSLAs as their preferred savings mechanism, with groups showing cycle to cycle savings growth from IDR 600,000 to over IDR 1,000,000; (2) socially, VSLAs evolved into support networks creating social funds for health emergencies and funeral expenses; (3) Among the 216 surveyed respondents, 42.6% reported increased women's involvement in household financial decision making due to the GrowHer Kakao Project; and (4) Among respondents reporting positive changes associated with VSLA participation, 55% identified improvements in women's economic conditions and participation in financial decision making. VSLAs also served as springboards for women's engagement in village planning forums. VSLAs function as multifunctional platforms that transform gender dynamics and power relations in rural communities. Their sustainability depends on structured leadership transition processes and deeper integration with local governance systems.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
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