The Rockefeller Effect: External Funding for SHGs in Kenya
Gugerty and Kremer (2004) examine the effect of providing external funding to SHGs in western Kenya. An external NGO provided capital and training to pre-existing groups; the study compared these program groups to other SHGs in the area that did not receive these inputs. The program had minimal impact on the labor input, agricultural output or assets of the group. It did not improve group strength or functioning as measured by participation rates, assistance to members and assistance to other community projects. It did however change the demographic of the groups that were originally targeting the most vulnerable in the community. Now members were younger, educated and employed in the formal sector. They were more likely to have come from outside the village.