Guidelines to Develop the Management of the Teachers’ Savings and Credit Cooperatives in the Southern Provinces of the Andaman Coast

Abstract

The purposes of this research were to study the present state of management of the Teachers’ Savings and Credit Cooperatives in the Southern provinces of the Andaman Coast, to investigate the factors affecting the management of the Teachers’ Savings and Credit Cooperatives, and to acquire strategies to develop the management of the Teachers’ Savings and Credit Cooperatives.  The research employed qualitative methodologies, and was divided into two steps.  In the first step, the researcher studied the present state of the Cooperatives and the obstacles in their management by document analysis and an in-depth interview techniques with 25 main informants.  The researcher then created strategies for the management of the Teachers’ Savings and Credit Cooperatives. Lastly, a focus group discussion was conducted to collect opinions and prioritize the strategies with nine experts. The results revealed that the present state of management of the Teachers’ Savings and Credit Cooperatives was controlled by committees. The committee members of all Teachers’ Savings and Credit Cooperatives in the Southern provinces create regulations and conditions for the loans and work according to the regulations. However, there were no explicit systems found. The committee members claimed that the way they operated in their jobs was based on the principles of good governance.

                   The problems and obstacles found in the Teachers’ Savings and Credit Cooperatives included: management by populist policy, unclear relations, high credit limits, and lack of risk management. The main problems were that most of the borrowers lacked discipline in returning the loans and the Cooperatives’ systems lacked the knowledge for personnel development in their organizations in order to meet the standard level.  Currently, the Cooperatives are affected by the government policy that encourages other financial institutions to provide easy loans for the people in the community.

                The researcher proposed strategies for the Teachers’ Savings and Credit Cooperatives as follows: In the beginning of the process, the Teachers’ Savings and Credit Cooperatives should collect all of the members’ information and check their financial history carefully. The committee members should make a decision for approval based on the information obtained.  After the loan approval process, the Teachers’ savings and Credit Cooperatives should check whether the borrowers followed the regulations strictly and according to the objectives of their loans. The Cooperatives should develop strategies regarding outstanding debts, doubtful accounts, and members who moved to other provinces. In the last process, the Cooperatives must work out how the members will return their loans, how to manage bad debts, and uncollectable debts. The advice for the Cooperative committee members was that the populist policy must be abandoned, the members must develop a system designed to understand and gain knowledge so they can run the Cooperatives effectively, they must follow the regulations and check the information carefully before making decisions, and the members of the Cooperatives must be trained in the subject of financial disciplines regularly