Problem and Sustainability of the Community-based Saving and Welfare Funds

Abstract

This paper has main objectives to present on-going operations and problems of Community-based Welfare Networks (CBWNs), Songkhla province and to formulate sustainability models of the Welfare Fund. The primary study areas were Khao-Phra,
Tha Kham and Ching-Kho sub-districts in Songkhla province. In addition, information
from other threeCBWNs; (1) Network of Community Microfi nance, Trat province,
(2) Micro Finance Institute, Nhong sarai sub-district, Phanomtuan district, Kanchanaburi province and (3) Network of Community Microfi nance, Palmpattana subdistrict,
Manang district, Satun province were utilized in this research. The research meth-
ods were an integrated approach, in depth interviews with key informants, open
knowledge sharing forum for stakeholders, and personal interviews with samples
of local people of the three sub-districts. The data were analyzed using descriptive
statistics and quantitative analysis using appropriate statistics.

The results indicated that even though the CBWNsin Songkhla province, or
locally known as “One Baht a day Saving” were well established networks connect-
ing the village to provincial levels and members were rapidly increasing, they had
a bottleneck of insuffi cient knowledge of an operation of some welfare distribution
items. Moreover most of the members decided to become members of the networks primarily based on their expectation of receiving the welfares. Sustainability problem of the funds the time of welfare and pension distributions was a key
problem that all leaders of the networks were worried about. At present, sources
of cash fl owed into the welfare funds of the CBWNs, Songkhla province were from
two main channels, i.e. the One Baht a day Saving that all members were commit-
ted to pay annually at 365 baht, and the government contribution funds through
the community-based welfare arrangement project (the project contribution at a
ratio of 1:1) including some contributions from the Local Administrative Organiza-
tions. Moreover, there was no initiative to fi nd new sources of revenues to the
welfare funds.
On the other hand, the other three CBWNshad not only their conventional
sources of funds similar to the two source that CBWNs in Songkhla province had, but also their attempts to materialize their self-reliance initiatives by visibly fueling cash
into their Welfare Funds. Their sources of fund were rationing operational profi ts from their saving groups, village funds, community banks,communityfi nancial institutes
and part of the profi ts from their community enterprises that the Community-based
microfi nance had supported. Their welfare funds were more secured. The CBWNs,
Songkhla province were advised to apply this knowledge to their own welfare fund
operations.