Informal Finance and the Urban Poor: An Investigation of Rotating Savings and Credit Associations in Turkey

This study focuses on the organisation among poor households of rotating savings and credit associations locally known in Turkey as On. Based on a longitudinal study of 17 households, the research demonstrates the distinctive ability of various guns to operate smoothly under inflationary conditions. Unlike the predominant portrayal of guns as a leisure activity for middle-class women, they are shown to act as a self-welfare instrument whereby poor households acquire the discipline of saving towards both their consumption and investment needs. Contrary to the conventional view, these households are found to use guns in circumstances where formal credit and savings options are available.