Assessment Of The Contribution of Naara Rural Bank to Community Development in the Kassena-Nankana West and East Districts

Abstract

The study assessed the contribution o f Naara Rural Bank to community development in the Kassena-Nankana West and East Districts o f the Upper East Region. The background o f the study established that past development models implemented during the colonial era in Ghana favoured urban centres to the detriment of rural communities. To curb this situation, various governments after independence implemented various interventions including the establishment o f rural/community banks to bridge the development gap. It was in this light that the Naara Rural Bank was established in the Kassena-Nankana District as the first rural bank in the Upper East Region in 1982. The objectives of the study were to: identify the programmes that the bank has implemented to facilitate socio-economic development in its service communities; find out the corporate social responsibility projects carried out by bank as part o f its social responsibility; find out the sustainability o f the development projects executed by the bank; and identify the strategies used by the bank to build local capacity for community development. The study was underpinned by the basic needs and open system theories. In terms o f methodology, the descriptive survey design was adopted for the study and the population consisted o f all adults in the Kassena-Nankana West and East Districts. The multistage sampling technique was employed for the study. Simple random, purposive and convenient sampling techniques were used at the final stage to sample a total o f 181 respondents for data collection. Primary data was collected using the interview schedule for non-literate respondents and questionnaire for the bank officials. The data collected was analysed using the Statistical Package for Social Scientists (SPSS) soft ware and presented in tables and pie charts. The study revealed that Naara Rural Bank promoted socio-economic development in its service communities by facilitating increased agricultural production and economic activities through credit programmes for farmers, women, persons with disability and the youth. The study further established that the bank did not single handedly construct a physical project in any of its service communities as part of its corporate social responsibility but supported social, activities such as cultural festivals, education, sports and farmers day. It was also found out that the bank built local capacity for development facilitating training on income generating activities and business development and management. Based on the findings, the study concluded that to a large extent, the bank has contributed to development in the Kassena-Nankana West and East Districts. The study recommended that the bank should design a corporate social responsibility policy to replace the current ad hoc way o f supporting activities in its service communities in the name o f social responsibility.