Social and Economic impact of Cooperativas de Ahorro y Préstamo inthe Bajío zone of Mexico

Abstract

Savings and loan cooperatives (SOCAP) have become the main provider of microfinancing for
this vulnerable population, benefiting them both economically and socially. This study presents the
results of a qualitative investigation in five SOCAPs in the Bajío area, Mexico. The objective is to
show how the solidarity structure of its management contributes to improving the living conditions of
its members, alleviating their poverty and, at the same time, promoting local development.
It was noted that functioning based on values and principles from Cajas Populares has increased
families’ savings improving their members and associates’ life quality and it has also boosted
their community economy through actions such as self-employment among solidarity ventures,
establishing stores and performing community benefit works.