Women's Participation in Local Organizations: Conditions and Constraints

Civic organizations have a capacity to contribute to economic growth and an equitable distribution of welfare by reducing information asymmetries and transaction costs. While donors increasingly recognize that group-based projects are a means to advocate organizational capacities of target groups, it is not clear whether group-based organizations always increase efficiency and equity. This article analyses the determinants of participation in local development groups (LDGs) using data from two projects funded by UNDP in Kashmir and GTZ in Chad. A major result of the empirical analysis is the identification of a “middle-class effect” of participation. The exclusion of the majority of the poor can be explained by high opportunity costs to join the group, especially for income-earning women. In addition, it can be shown that an existing social network is a pre-condition for participation. Finally, the assumption has been confirmed that bargaining power of the members is important for their decision to participate in groups.