Savings and Spider Plants: What is Good Governance for Member-Owned Institutions in Remote Areas?

This study aims to get a better understanding of governance across various types of member-owned institutions (MOIs). It examines seven institutional case studies from the perspective of base-tier associations and their members.

The seven case studies, ranging from semi-formal associations to registered and regulated cooperatives, were selected based on their potential for remote outreach and ability to provide insights into good governance mechanisms. Research methodologies included quantitative operational and financial data analysis, interviews, focus group discussions and a review of internal control mechanisms.

Members expressed more trust and ownership when they perceived the MOI as their institution using their money. Study findings indicate that:

• MOIs need to be clear about how the entire system and its parts are being governed;
• Linkages may not present too many governance challenges provided gains from the linkage outweigh its costs;
• MOIs planning one association per village or community face unique challenges;
• Key triggers to complex forms of governance are accumulation and aggregation;
• Governance system should either be simple or standardized for ease of management.