Understanding Social Relations and Payments Among the Poor in Ethiopia (Executive Summary)
Abstract
This is the 2-page executive summary for the IMTFI Working Paper: Understanding Social Relations and Payments Among the Poor in Ethiopia.
Most studies of mobile money for the poor pay little attention to the complex relationships of people on the ground with money and financial services. In order to better inform the design of new mobile money systems for the purpose of financial inclusion, this research project by Woldmariam F. Mesfin investigates social relationships and payment practices among the poor in rural Ethiopia. A study of existing payment practices in Ethiopia is pertinent especially given the recent proliferation of various mobile money initiatives. Two key questions face mobile money professionals and scholars of financial inclusion alike: How will these mobile money initiatives reach out to the local population? How will they incorporate existing (albeit unbanked) financial practices?
In order to inform new designs for mobile money products and services about local financial institutions and practices, this study explores the ecology of social payments—informal savings and loans institutions, monetary and non-monetary gifts, payments to people with power and to deities—while identifying some key challenges to fulfilling these payments.