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--- rosc:roscas [2025/12/05 10:40] – created - external edit 127.0.0.1
+++ rosc:roscas [2026/04/21 08:34] (current) – [Environmental] Simon Grant
@@ Line 1: / Line 1: @@
-# ROSCAs — Rotating savings and credit associations
+This topic is part of [[gt:economy|Economy & finance]].
+====== ROSCAs — Rotating savings & credit associations ======
-![](https://lowimpactorg.onyx-sites.io/wp-content/uploads/roscas-main1.jpg)
+{{:rosc:roscas.jpg?nolink|}}
 ---
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-## What are ROSCAs?
+===== What are ROSCAs? =====
 They're groups of individuals who agree to meet for a defined period to save together. Each member contributes a fixed amount to a common pool at regular intervals – maybe weekly or monthly. At each meeting, the entire pooled sum is given to one member, with the process rotating until every participant has received the lump sum once, after which they start again, or the ROSCA dissolves.
@@ Line 38: / Line 40: @@
 <caption>
-All over the world, ROSCAs are most usually founded and run by women – like chit funds in India.
+_All over the world, ROSCAs are most usually founded and run by women – like chit funds in India._
 </caption>
@@ Line 44: / Line 46: @@
 </figure>
 </WRAP>
+==== History ====
-### History
 They're among the world’s oldest and most enduring informal financial systems. They've enabled millions of people - especially those excluded from formal banking - to save, access credit, and build community resilience. They rely on trust, social accountability, and community ties rather than legal contracts or banks.
@@ Line 57: / Line 58: @@
 <caption>
-Savings clubs were the seeds for building societies, co-operatives, and may well be the seeds for future commons / mutual / community-ownership movements.
+_Savings clubs were the seeds for building societies, co-operatives, and may well be the seeds for future commons / mutual / community-ownership movements._
 </caption>
@@ Line 64: / Line 65: @@
 </WRAP>
-Savings clubs were the 'seeds' of the [building societies](/buil/building_societies) (money was pooled for members to be able to buy houses) and quite possibly the entire [co-operative movement](/coop/co-operatives). 'Didlum' groups started to appear for the same reasons that co-operative and mutual societies did – the hardships being experienced by working-class communities in the growing industrial cities of the early 19th century, with the poor laws and enclosures pushing people off the land, where they could have supported themselves. Savings clubs led to bulk-purchasing shops and then co-operative and mutual societies themselves.
+Savings clubs were the 'seeds' of the [building societies](/bsoc/building_societies) (money was pooled for members to be able to buy houses) and quite possibly the entire [co-operative movement](/coop/co-operatives). 'Didlum' groups started to appear for the same reasons that co-operative and mutual societies did – the hardships being experienced by working-class communities in the growing industrial cities of the early 19th century, with the poor laws and enclosures pushing people off the land, where they could have supported themselves. Savings clubs led to bulk-purchasing shops and then co-operative and mutual societies themselves.
 When you look at modern large co-op movements like [SEWA in India](https://www.sewafederation.org/) or [Mondragon](https://en.wikipedia.org/wiki/Mondragon_Corporation) in the Basque Country, they really started to take off when they created a community bank. It was because of this pooling of community resources that they were able to invest in themselves, so that they could de-couple from the capitalist banking and shareholding model.
-### Variants
+==== Variants ====
 <WRAP center centeralign>
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 <caption>
--minute intro to ROSCAs.
+_15-minute intro to ROSCAs._
 </caption>
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 <caption>
-They do.
+_They do._
 </caption>
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-## What are the benefits of ROSCAs?
+===== What are the benefits of ROSCAs? =====
-### Personal
+==== Personal ====
 ROSCAs serve multiple functions, including insurance and socializing, as well as economic support. They work well for people who find it difficult to save, to get bank loans, or to pay the high interest on payday loans.
@@ Line 122: / Line 123: @@
 <caption>
-There are ROSCA apps / online ROSCAs, but please avoid corporate versions – there's no need for the corporate sector to take a cut.
+_There are ROSCA apps / online ROSCAs, but please avoid corporate versions – there's no need for the corporate sector to take a cut._
 </caption>
@@ Line 129: / Line 130: @@
 </WRAP>
-### Environmental
+==== Environmental ====
-Their big environmental benefit is that because there's no interest or profit, there's no growth imperative – in other words, they can work as part of a stable local community. [Perpetual GDP growth is the real killer of the biosphere](/stea/steady-state_economics).
+Their big environmental benefit is that because there's no interest or profit, there's no growth imperative – in other words, they can work as part of a stable local community. [Perpetual GDP growth is the real killer of the biosphere](pgec:post-growth).
-They can also help members to get [solar panels](/soel/solar_electricity), [wood stoves](/wstov/wood_stoves), [heat pumps](/heat/heat_pumps) etc.
+They can also help members to get [solar panels](/soel/solar_electricity), [wood stoves](/wdst/wood_stoves), [heat pumps](/heat/heat_pumps) etc.
 <WRAP center centeralign>
@@ Line 148: / Line 149: @@
 </WRAP>
-### Democracy / decentralising power away from corporations
+==== Democracy / decentralising power away from corporations ====
-ROSCAs do this directly, by taking business away from corporate banks. Providing things for ourselves in communities helps prevent extraction, decentralises power away from corporations (which makes it more difficult for them to [corrupt democracy](/thde/the_democracy_problem)) and democratises work.
+ROSCAs do this directly, by taking business away from corporate banks. Providing things for ourselves in communities helps prevent extraction, decentralises power away from corporations (which makes it more difficult for them to [corrupt democracy](/demo/democracy)) and democratises work.
 As mentioned above, they provided the seed for various mutual / commons movements. They can seed all kinds of mutual aid / [commons](/coec/commons_economy) institutions / community development in the future too.
@@ Line 160: / Line 161: @@
 <caption>
-there's no interest involved with ROSCAs, which means they can work well in muslim communities, were interest (usury) is banned.
+_there's no interest involved with ROSCAs, which means they can work well in muslim communities, were interest (usury) is banned._
 </caption>
@@ Line 167: / Line 168: @@
 </WRAP>
-### Community / collapse preparation
+==== Community / collapse preparation ====
 ROSCAs can really help us to look after each other - they're one of the best tools around for community and resilience building – and they work well in working-class communities.
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 <caption>
-ROSCAs can help members start a business.
+_ROSCAs can help members start a business._
 </caption>
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-## What can I do?
+===== What can I do? =====
 ROSCAs are more difficult for Westerners to get their heads around, where community has been weakened, and people have organised their finances via individual relationships with corporate banks. It's a much easier concept for people from the Global South, where communities are more intact.
-### Forming a ROSCA
+==== Forming a ROSCA ====
 . **Identify** **p****otential** **m****embers:** **g**ather a group of people you trust - family, friends, co-workers, or community members.
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 <caption>
-Saving clubs in Kenya are called chamas, and virtually everyone is involved with one. This made it much easier for [the Sarafu Network to introduce mutual credit trading in Kenya](http://lowimpactorg.onyx-sites.io/posts/how-chamas-mutual-credit-changing-africa/).
+_Saving clubs in Kenya are called chamas, and virtually everyone is involved with one. This made it much easier for [the Sarafu Network to introduce mutual credit trading in Kenya](http://lowimpactorg.onyx-sites.io/posts/how-chamas-mutual-credit-changing-africa/)._
 </caption>
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 <caption>
-More names, from kin.coop
+_More names, from kin.coop_
 </caption>
@@ Line 246: / Line 247: @@
-## Further resources
+===== Forum =====
-- [ROSCAs as an Islamic micro-finance vehicle](http://lowimpactorg.onyx-sites.io/wp-content/uploads/roscas-and-islamic-finance.pdf)
+This topic belongs to the section [[gt:economy|Economy & finance]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/economy).
+===== Further resources =====
+- [ROSCAs as an Islamic micro-finance vehicle](http://lowimpactorg.onyx-sites.io/wp-content/uploads/roscas-and-islamic-finance.pdf)
 - [Bank of England](https://www.bankofengland.co.uk/museum/whats-on/pardner-hand): resources from an exhibition about 'pardner hand' - ROSCA of the Windrush generation in the UK - including articles, interviews and free school resources
+- [Wikipedia](https://en.wikipedia.org/wiki/Rotating_savings_and_credit_association)
+- [Science Direct](https://www.sciencedirect.com/science/article/pii/S2772655X23000393) - ROSCAs: a scoping review
+- [Oxford Academic](https://academic.oup.com/book/38811/chapter-abstract/337654970?redirectedFrom=fulltext) - an introduction to ROSCAs as living proof of diverse community economies
+===== Related topics =====
+- [[bsoc:Building societies]]
+- [[coec:Commons economy]]
+- [[crcl:Credit clearing]]
+- [[crco:Credit commons]]
+- [[crun:Credit unions]]
+- [Collaborative finance](cofi:collaborative_finance)
+- [[mucr:Mutual credit]]
+- [[coop:Co-operatives]]
+- [[comg:Commoning]]
+- [[comy:Community]]
+- [[lcur:Local currencies]]
-## Specialist(s)
+===== Specialist curators of this topic =====