Hostname: page-component-cd9895bd7-fscjk Total loading time: 0 Render date: 2024-12-22T02:20:33.221Z Has data issue: false hasContentIssue false
  • English
  • Français

Rotating savings and credit associations as traditional mutual help networks in East Asia

Published online by Cambridge University Press:  01 March 2021

Morio Onda
Morio Onda*
Affiliation:
Department of Sociology, Ryutsu Keizai University, 3-2-1, Shinmatsudo, Matsudo-shi, Chiba-ken, 270-8555, Japan
*
Corresponding author: Morio Onda, E-mail: morio.onda@nifty.com
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper presents micro finance as a traditional system of mutual help networks in East Asia. These are called “Rotating Savings and Credit Associations” (ROSCAS) and can also be seen in other areas. Micro finance means that invested money is small and managed by members. Mutual help actions are divided into three categories: reciprocal, redistributional, and unidirectional action. The content of redistribution is labor, goods, and money. ROSCAS are the distributional action of money. It has been called tanaomoshi or mujin in Japan. ROSCAS have different names: South Korean ke, Chinese kai (huì), and Taiwanese hyokai (biāo huì) can be compared with the already well-studied Japanese case through the results of an interview survey and fact-finding fieldwork study. The purpose of the paper is to show that ROSCAS are important not only economically but also socially in terms of friendship and bonds. The economy is embedded in social relations and institutions. Although ROSCAS have almost disappeared from modern life and some are interest-oriented, they contributed to sustainable communities and can still be identified in East Asia. The paper concludes that modern societies might do well to reconsider ROSCAS as mutual help networks in search of ways of reconstructing communities.

Keywords

Mutual help networksredistributional actionROSCASspontaneous social ordersustainable community
Type
Individual Articles
Information
International Journal of Asian Studies , Volume 18 , Issue 2 , July 2021 , pp. 271 - 287
Check for updates
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acheson, J. M. (2003). Capturing the Commons. Hanover and London: University Press of New England.Google Scholar
Ardener, S. (1995). “Women Making Money Go Round: ROSCAS Revisited.” In Money-Go-Rounds: The Importance of Rotating Savings and Credit Associations for Women, eds. Ardener, Shirley and Burman, Sandra, pp. 1–19. Washington, DC: Berg.Google Scholar
Baden, J. A. (1998) [1977]. “A New Primer for the Management of Common-Pool Resources and Public Goods.” In Managing the Commons, eds. Baden, John and Noonan, Douglas, pp. 51–62. Bloomington, IN: Indiana University Press.Google Scholar
Besley, T., Coate, S. and Loury, G. (1993). “The Economics of Rotating Savings and Credit Associations.” The American Economic Review 83:4, pp. 792–810.Google Scholar
Besley, T., Coate, S. and Loury, G. (1994). “Rotating Savings and Credit Associations, Credit Markets and Efficiency.” The Review of Economic Studies 61(4), pp. 701–19.CrossRefGoogle Scholar
Besley, T. and Levenson, A. R. (1996). “The Role of Informal Finance in Household Capital Accumulation: Evidence from Taiwan.” The Economic Journal 106:January, pp. 39–59.CrossRefGoogle Scholar
Bird, I. L. I. (1905). Korea and Her Neighbours. London: John Murray.Google Scholar
Bouman, F. J. A. (1977). “Indigenous Savings and Credit Societies in the Third World: A Message.” Saving and Development 1:4, pp. 181–218.Google Scholar
Bouman, F. J. A. (1983). “Indigenous Savings and Credit Societies in the Developing World.” In Rural Financial Markets in the Developing Countries, eds. von Pischke, Adams and Donald, Gordon, pp. 262–268. Washington: World Bank.Google Scholar
Burt, R. S. (1992). Structural Holes: The Social Structure of Competition. Cambridge and London: Harvard University Press.CrossRefGoogle Scholar
Cahn, E. S. (2000). No More Throw-Away People: The Co-Production Imperative. Washington: Essential Books.Google Scholar
Campbell, C. D. and Ahn, C. S. (1962). “Kyes and Mujins: Financial Intermediaries in South Korea.” Economic Development and Cultural Change 11:1, pp. 55–68.CrossRefGoogle Scholar
Chin, T. (2004). “Chugokutonanenkaibu “niokeru ‘Goukai'no Jittaito to sono Kinyushisan (Goukai'in Chinese East-south Coastal District and Financial Assets.” Chugoku keieikanri Kenkyu (Chinese Management Journal). 4, pp. 23–47 (in Japanese).Google Scholar
Chugoku Noson Kanko Chosakai. (1952–58) [1940–44]. Chugoku Noson Kanko Chosa (Research on Chinese Village Customs) (Vol. 6). Tokyo: Iwanami shoten (in Japanese).Google Scholar
Crow, G. (2004). “Social Networks and Social Exclusion: An Overview of the Debate.” In Social Networks and Social Exclusion, eds. Phillipson, Chris, Allan, Graham and Morgan, David H. G., pp. 7–19. Aldershot, UK: Ashgate.Google Scholar
Dekle, R. and Hamada, K. (2000). “On the Development of Rotating Credit Associations in Japan.” Economic Development and Cultural Change 49:1, pp. 77–90.CrossRefGoogle Scholar
Etzioni, A. (1996). The New Golden Rule: Community and Modernity in a Democratic Society. Philadelphia, PA: Basic Books.Google Scholar
Feeny, D., Berkes, F., McCay, B. L. and Acheson, J. M. (1998) [1990]. “The Tragedy of the Commons: Twenty-Two Years Later.” In Managing the Commons, eds. Baden, J. and Noonan, D., pp. 76–94. Bloomington, IN: Indiana University Press.Google Scholar
Friedmann, J. (1992). Empowerment: The Politics of Alternative Development. Cambridge, MA: Blackwell.Google Scholar
Fukuba, H. (1934). Kou no Kenkyu (Study of Kou). Tokyo: Touhosyoin (in Japanese).Google Scholar
Fukutake, T. (1976) [1946]. Chugoku Noson Shakai no Kozo (The Structure of Chinese Village Society). The Collected Writings of Tadashi Fukutake (Vol. 9). Tokyo: University of Tokyo Press (in Japanese).Google Scholar
Geertz, C. J. (1962). “The Rotating Credit Association: A ‘Middle Rung’ in Development.” Economic Development and Cultural Change 10: pp. 241–63.CrossRefGoogle Scholar
Goson Shakaishi Kenkyukai. (1996). Kankoku no Goyaku-Dokei (South Korean Village Rules Rural Society Ke) Shinyo Kyodo Kumiai Tyuokai (in Korean).Google Scholar
Gouldner, A. W. (1960). “The Norm of Reciprocity: A Preliminary Statement.” American Sociological Review 25:2, pp. 161–78.CrossRefGoogle Scholar
Granovetter, M. S. (1975). “The Strength of Weak Ties.” American Journal of Sociology 78: pp. 1360–80.CrossRefGoogle Scholar
Granovetter, M. S. (2017). Society and Economy: Framework and Principles. Cambridge, MA: Belknap Press of Harvard University Press.CrossRefGoogle Scholar
Hardin, G. (1998) [1968]. “The Tragedy of the Commons.” In Managing the Commons, eds. Baden, John and Noonan, Douglas, pp. 51–62. Bloomington, IN: Indiana University Press.Google Scholar
Hatada, T. (1973) [1949]. Chugoku Sonraku to Kyodotai Riron (Chinese Villages and Community Theories. Tokyo: Iwanami shoten (in Japanese).Google Scholar
Hechter, M. (1987). Principles of Group Solidarity. Berkeley, CA: University of California Press.Google Scholar
Ikeda, R. (1930). Kohon Mujin no Jitsumu to Gakusetsu (Practice and Theory of Muijn). Zenkokumujin shukaisho (in Japanese).Google Scholar
Ishida, H. (1994). “Chugoku Noson Shakai no Kiteikozo: Chugoku Shakaishugi to Dento Shakai (The Fundamental Structure of Chinese Villages: Chinese Socialism and Traditional Society).” In Kindaika to Kozohendo (Modernization and Structural Transformation, Lecture Modern Asia, No. 2), ed. Nakagane, Watsuji, pp. 113–140. Tokyo: University of Tokyo (in Japanese).Google Scholar
Kropotkin, P. A. (1902). Mutual Aid: A Factor of Evolution. London: Heinemann.Google Scholar
Lee, D., Jang, J. and Lee, G. (1991) [1983]. Kankoku Minzokugaku Gaisetsu (An Introduction to Korean Folklore). Seoul: Gakukensha (in Korean).Google Scholar
Lee, M. H. (2006). How does Build up the People's Finance Institution in Korea? – From Mujin into Kukmin Bank. The Review of Business History 42, pp. 215–41.Google Scholar
Michibata, Y. (1934). Mujin no Kenkyu (Study of Mujin). Tokyo: Tohoshoin (in Japanese).Google Scholar
Miura, S. (1918). “Tanomoshi no Kigen to Sono Gogen (Origin of Tanomoshi).” Keizai Ronso (Economic Journal), 7:5, p. 1011 (in Japanese).Google Scholar
Mori, U. (1917). Taiwan Banzokushi (History of Taiwanese Tribes) Rinji Taiwan Kyukan Chosakai (Vol. 1).Google Scholar
Najita, T. (2009). Ordinary Economies in Japan: A Historical Perspective, 1750–1950. Oakland, CA: University of California Press.Google Scholar
Namihira, I. (2006). “Fukkensho no Minkankinyu: Hyokai o Chushinnishite (Private Finance in Fujian Province).” Nantobunka (Ryukyuan Culture). 28, pp. 123–31 (in Japanese).Google Scholar
Norinsho Keizai Koseibu. (1935). Tanomoshi nikansuru Kenkyu (Research on Tanomoshi) Norinshokeizaikouseibu (in Japanese).Google Scholar
Okakura, T. (1986) [1903]. The Ideals of the East with Special Reference to the Art of Japan (Toyo no Riso). London: John Murray (Tokyo: Kodansha).Google Scholar
Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Harvard, MA: Harvard University Press.Google Scholar
Onda, M. (2005). “Mutual Help Networks in Japanese Society.” Journal of the Faculty of Sociology (Ryutsu Keizai University) 16:1, pp. 1–14.Google Scholar
Onda, M. (2006). Gojo Shakai Ron (Mutual Help Society). Kyoto: Sekaishisosha (in Japanese).Google Scholar
Onda, M. (2012). “Kankoku no Gozyokanko (Mutual Help Customs in Korea).” Journal of the Faculty of Sociology (Ryutsu Keizai University) 23:1, pp. 1–44 (in Japanese).Google Scholar
Onda, M. (2013a). “Mutual Help Networks and Social Transformation in Japan.” American Journal of Economics and Sociology 71:3, pp. 531–64.CrossRefGoogle Scholar
Onda, M. (2013b). “Chugoku Noson Shakai no Gozyokanko (Mutual Help Customs in Chinese Villages).” Journal of the Faculty of Sociology (Ryutsu Keizai University) 24:1, pp. 25–60 (in Japanese).Google Scholar
Onda, M. (2014). “Taiwan no Gozyokanko (Mutual Help Networks in Taiwan).” Journal of the Faculty of Sociology (Ryutsu Keizai University) 25:1, pp. 1–26 (in Japanese).Google Scholar
Onda, M. (2015). “Higashiajia no Gozyosyakai: Nihon to Kankoku, Chugoku, Taiwan tono Gozyo nettowaku no Hikaku (Mutual Help Society of East Asia: A Comparison of Japan with South Korea, China and Taiwan on Mutual Help Networks).” Journal of the Faculty of Sociology (Ryutsu Keizai University) 26:1, pp. 61–97 (in Japanese).Google Scholar
Onda, M. (2017). “Restoration of Communities Following the Great East Japan Disaster: The Transformation of Mutual Help Networks Through the Eyes of the Victims.” In Recovering from Catastrophic Disaster in Asia, eds. Waugh, W. L. Jr. and Han, Z., pp. 61–84. Bingley, West Yorkshire: Emerald Publishing.CrossRefGoogle Scholar
Onda, M. (2019). Sasaeai no Shakaishisutemu (Social System of Mutual Help Networks). Kyoto: Minerva Publishing.Google Scholar
Ostrom, E. (1990). Governing the Commons: The Evolution of Institution for Collective Action. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Polanyi, K. (1977). The Livelihood of Man, ed. Harry W. Pearson, New York, NY: Academic Press.Google Scholar
Putnam, R. D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York, NY: Simon and Schuster.Google Scholar
Rawls, J. (1999) [1971]. A Theory of Justice (Revised Edition). Cambridge, MA: Harvard University Press (Belknap).Google Scholar
Rinji Taiwan Kyukan Chosakai. (1903–7:1910). Rinji Taiwan Kyukan Chosakai Hokokusho (Reportson Tiwanese Taraditonal Customs). Rinjitaiwankyukanchosakai (in Japanese).Google Scholar
Rinji Taiwan Kyukan Chosakai. (1918). Banzoku Kyukan Chosahokokusho (Reports on Taiwanese Natives). Rinjitaiwankyukanchosakai (in Japanese).Google Scholar
Shimizu, K. and Cho, G. (1944). Shinamanshu Minjikanshu Chosahokoku (Reports on Chinese and Manchurian Customs). Kyoto: Taigado (in Japanese).Google Scholar
Shimizu, M. (1939). Shina Shakai no Kenkyu (Study of Chinese Society). Tokyo: Iwanami shoten (in Japanese).Google Scholar
Shimizu, M. (1951). Chugoku Goson Shakairon (Chinese Agricultural Society). Tokyo: Iwanami shoten (in Japanese).Google Scholar
Smelser, N. J. and Swedberg, R. (eds.). (2005) [1994]. The Handbook of Economic Sociology. New York, NY and Princeton, NJ: Russell Sage Foundation and Princeton University Press.Google Scholar
Smiles, S. (1859). Self-Help: With Illustrations of Conduct and Perseverance. London: John Murray.Google Scholar
Smith, A. H. (1899). Village Life in China: A Study in Sociology. New York, NY: F. H. Revell company.Google Scholar
Suzuki, E. (1958). “‘Chosen no ke to pumashi’ (Ke and Pumashi in Korea).” Study of Ethnology, 27:3, pp. 22–28 (552–558) (in Japanese).Google Scholar
Suzuki, E. (1968) [1940]. Nihon Noson Shakaigakugenri (Foundation of Japanese Agricultural Sociology) (The Collected Writings of Eitaro Suzuki, Vol. 1). Tokyo, Miraisha (in Japanese).Google Scholar
Takeuchi, T. (1990) [1984]. Sonrakushakai to Kyodokanko (Village Society and Cooperative Customs). Kadoma, Osaka: Meichoshuppan (in Japanese).Google Scholar
Xiong, Y. B. (2003). “Sonrakushakai niokeru Zenikai: Shinminkokuki no Chosyu ochushinnishite (Zenikai of Huizhou District in Ming and Qing Dynasty).” Mindaishikenkyukai Soritsu 35 shunen Kinen Ronbunshu (The 35th anniversary Proceedings of Ming and Qing Dynasty History). Tokyo: Kyukoshoin, pp. 395–418.Google Scholar
Zelizer, V. A. (2010). Economic Lives: How Culture Shapes the Economy. Princeton, NJ: Princeton University Press.Google Scholar
Zensho, E. (1926). Ke in Korea. Reports No. 17. Keijo, Korea: Chousen Sotokufu (in Japanese).Google Scholar
Zhèng, Y. [1985] 1990. Furuido (Old well).translated by Fujii, Seizou. Tokyo: JICC Press (in Japanese).Google Scholar