Financial Capability and Economic Inclusion of People with Disabilities: Case Study on the Community Cooperative for the Disabled (CCD) Program in Rural China

Background and Purpose: Financial capability is considered an important indicator of economic independence for people with disabilities. Compared to the mainstream population, those with physical, mental, intellectual, and other types of disabilities often face greater barriers to achieve financial security and independence. They are at higher risk for lifelong poverty and dependency on public programs. With a few exceptions, the existed literature rarely focuses on the financial life of people with disabilities in rural areas, e.g., how they perceive financial security, make financial decisions and access to financial services. Even less attention is given to how to build their financial capability, and probe the effect of financial capability intervention on promoting the economic inclusion of people with disabilities.

This study based on a 4-year Community Cooperative for the Disabled (CCD) program in rural Shan’xi, China aims to investigate the effect of financial capability building on the economic inclusion of people with disabilities in rural, and demonstrates its important implications for social work practice with rural disabled in China as well as in other countries.

Methods: This study is a qualitative case study guided by the methodology of ground theory. The research team deployed an in-depth interview method to collect data on the CCD program from 2012-2016. The interviewees included 1 program director, 3 program officers, 2 social workers, as well as 20 disabled participants of the CCD program. Participants were recruited and interviewed through home visit or telephone call. The qualitative data were systematically coded for subsequent analysis. 

Findings: By providing institutional opportunity for rural disabled people to access basic financial services and knowledge, the CCD program empowered the most vulnerable people in the rural to make financial decision and build assets for their employment and start-up enterprise. Financial capability building service delivery became sustainable through the forming of different self-help groups according to their livelihood development interest and strategies. The members of CCD program organized training activities on financial knowledge and skills, and had learned how to invest and manage their savings. By engaging the process of financial asset accumulation, they became more future-oriented, and were able to plan their livelihood through more active economic and social participation.

Conclusions and Implications: This study has important implications for policy intervention targeted disabled population in rural.  More inclusive social programs should be available for people with disabilities to broaden their access to financial services and build their capabilities to make independent financial decisions for long-term development. Either in China or in other countries, community development programs should integrate financial capability building component. Meanwhile, appropriate training and curriculum on financial capability building in rural should be developed.