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 gün . Based on a longitudinal study of 17 households, the research demonstrates the distinctive ability of various gün s to operate smoothly under inflationary conditions. Unlike the predominant portrayal of gün s 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 gün s in circumstances where formal credit and savings options are available.