Commitment Savings Accounts in Malawi : A Product Design Case Study
Malawi s economy is heavily dependent on agriculture, especially tobacco, which comprises a majority of the country s exports. Tobacco farmers have one harvest a year, and while their income stream occurs over several months it must last them for t...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/03/24158205/commitment-savings-accounts-malawi-product-design-case-study http://hdl.handle.net/10986/21681 |
| Summary: | Malawi s economy is heavily dependent on
agriculture, especially tobacco, which comprises a majority
of the country s exports. Tobacco farmers have one harvest a
year, and while their income stream occurs over several
months it must last them for the entire year, making it
difficult to smooth consumption throughout the year. The
objective of this case study is to present the design and
implementation of a commitment savings product for groups of
tobacco farmers in Malawi. The product was successful in
encouraging savings, increasing input purchases and yields
for the next year s harvest, and increasing consumption
after the harvest. The following sections describe the lack
of formal savings options for rural farmers, the behavioral
concept behind commitment savings accounts, the product
designed to address these problems and subsequent changes to
the original design, results of a field experiment
evaluating the product, and lessons learned for other
commitment savings products. |
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