Monetizing the Social and Political Capital of the Poor

From Slum Dwellers International:

Once Federations begin to negotiate with local governments around secure tenure and basic services, the next step is always to find the finance for the actual implementation and delivery. Very often the lack of access to funds delays projects and results in a loss of morale for the communities involved.
These constraints have prompted many SDI affiliates to build new institutions, called Urban Poor Funds(pdf), which monetize the social and political capital of savings groups to leverage additional resources from formal banking institutions, the State, and international donor agencies. By combining the savings of the poor with external contributions, Urban Poor Funds gear up capital for large-scale construction and infrastructure development...[continue reading]