Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Sub-Saharan Africa. As one of the largest, independent foundations, its work is guided by its mission to advance learning and promote financial inclusion in order to alleviate poverty. Based in Toronto, Canada, its independence was established by MasterCard when the Foundation was created in 2006. For more information, please visit www.mastercardfdn.org or follow us on Twitter @MCFoundation.
Does access to better, village-level facilities for saving and borrowing improve educational outcomes and expenditure? Based on a literature review and case studies in Ghana commissioned by Plan UK, this paper finds that savings groups programs such as village savings and loans associations (VSLA) help poor rural households pay for education in some contexts but not others. Households use loans directly to pay school expenses and also invest in income generating activities that allow them to raise educational expenditure in the longer term. There are additional indirect effects on education through healthcare, nutrition, and household decision making.
The briefing paper can be accessed through the following link: