This study, conducted in Uganda, aimed to understand the impact of nudging members of community-based organizations to elect new female leadership, to assess the potential held by such interventions in promoting gender equality in the developing world.
Researchers: Sulaiman, Munshi; Serra, Danila; Nabulumba, Christine; Mpiira, Robert; Buitrago, Catalina; Bjorvatn, Kjetil; Chowdhury, Shyamal
Timeline: 2022– 2024
Status: Completed
Contact: Munshi Sulaiman; munshi.sulaiman@bracu.ac.bd
Context:
Globally, women remain noticeably underrepresented in leadership roles across political, economic, and social spheres. This disparity is starkly visible in developing regions such as Sub-Saharan Africa and South Asia, where deeply rooted traditional gender roles limit women’s access to leadership positions. This raises an important policy question regarding the advancement of gender equality. One promising approach to addressing this problem is community-based organizations, such as Village Savings and Loans Associations (VSLAs)—which are widespread in Sub-Saharan African countries like Uganda, where the intervention took place, and have substantial female participation—offering considerable opportunities to foster local female leadership.
Objective:
The objective of the intervention was to nudge women to actively take up leadership roles in VSLAs. This study aimed to measure the impact of the intervention on women’s electability to leadership positions, the effects of female leadership on VSLAs, and whether matching female leaders with female mentors had any additional impact on their leadership performance.
Methodology:
The main intervention involved nudging VSLA members to consider electing new leaders to introduce fresh management perspectives and provide opportunities for others to develop leadership skills. This message was delivered as a scripted announcement 1–2 weeks before the closure of each election cycle and the selection of new leadership.
A baseline survey conducted for the study found that the sampled VSLAs and their members were similar in terms of demographic characteristics, as well as committee and general members’ attitudes toward female leadership, indicating successful randomization. The follow-up survey was conducted 2 years after the baseline survey.
A total of 132 VSLAs were assigned to the control group, which did not receive any nudges. Among those receiving the intervention, 131 VSLAs were encouraged to elect a new male chairperson, while the remaining VSLAs were nudged to elect a new female chairperson. Additionally, 134 VSLAs encouraged to elect female leadership were also offered mentorship opportunities from experienced current or former female chairpersons, with this information kept confidential until after the election.
Findings:
- Impact on female leadership: The nudge significantly increased female leadership. In the treatment cycle, women were 11% more likely to be elected as chairperson—a 150% increase from the control group (6.9%). The effect persisted into the next cycle, with a 13% increase in female leadership.
- Borrowing Behavior: The nudges had no impact on the likelihood of borrowing. However, VSLAs with female leadership issued larger loans compared to the control group. Loan increases were higher for women (80% greater than the control mean) than for men (60% greater).
- Equitable Loan Allocation: In the control group, male and female members received equal loan amounts, despite having a larger female membership. In the treatment groups with a nudge to elect a new female chairperson, more loans were allocated to female members, suggesting a more equitable distribution.
- Member Retention: Female leadership reduced dropout rates. In the control group, 25% of members dropped out, while in treatment groups with a nudge to elect a new female chairperson, the dropout rate was 20% lower than in the control group.
- Financial Sustainability: Larger loans in the treatment groups with a new female chairperson were partially financed by increased savings. Average savings in the control group VSLAs were 4.6 million UGX, while treatment groups saw increases of 700,000 to 1 million UGX. Loan write-off rates were initially lower in the treatment group but evened out in later cycles, implying no evidence of increased financial risk.
- Effect of Mentorship Opportunities: There were no additional impacts of mentorship opportunities on any of the outcomes beyond the “female nudge”.
- Perception of Female Leadership: There were no significant differences in satisfaction with female versus male chairpersons among the members. This challenges the belief that women are perceived as less effective leaders, contrary to popular belief. One possible explanation for this is that women leaders are held to higher standards—despite performing better in loan allocation, they were not rated higher in satisfaction surveys.
Recommendations:
VSLAs play a vital role in promoting financial inclusion for marginalized groups, particularly women, by providing them with access to savings and credit. Despite guidelines emphasizing women’s leadership, systematic bias persists against women becoming chairpersons. The study demonstrates that VSLAs can serve as a platform for enhancing women’s leadership, leading to more equitable loan access for female members. A simple intervention—encouraging the election of female chairpersons—can be easily integrated into the practices of agencies supporting the creation of new VSLAs. This approach helps address gender bias while also leveraging the strengths women bring to leadership roles. Beyond the policy implications, the findings highlight the broader potential for promoting women’s leadership in community-based organizations and the positive impact it can have.
