Business English Lesson – Advanced Level''''s archiveRoscas ppt

Informal groups cannot rely on external enforcement to insure that members .... It is generally assumed that these problems are solved by social sanctions' and ..... Roscas are one of th

Business English Lesson – Advanced Level's archive

Roscas

1 Informal groups cannot rely on external enforcement to insure that members by their obligations

abide

agree

assist

attest

2 It is generally assumed that these problems are solved

by social sanctions' and effects

computational

computed

reputational

reputed

3 Roscas are one of the most commonly found informal financial institutions in the developing world; in the

absence of an external (social) sanctioning mechanism, roscas are never sustainable, even if the member is excluded from all future roscas

defacing

defeating

defecting

defining

4 It is assumed that informal groups, such as

roscas, rely on social sanctions to solve their enforcement problems

perfunctorily

practically

topically

typically

5 We examine this notion more carefully and distinguish between expulsion from future roscas cycles and social sanctions

expedient

exponential

extraneous

extrapolated

6 We first demonstrate that theoretically expulsion in itself

is never a sufficient

curtailment

deterrent

incitement

involvement

7 We then ask whether institutional features of these

groups are chosen in some part to prevent members from on their responsibilities

defalcating

defaulting

defalcating

deflecting

8 We focus on the allocation of ranks, and we show that a random allocation of ranks, though preferred by a majority

of members, tends to the incentives to welch

exacerbate

exonerate

extend

extol

9 They are therefore sustainable only if the of social sanctions on their members are sufficiently high

costs

expenses

prices

values

10 We provide some evidence in favour of our

hypothesis, since individuals who are more to those sanctions tend to participate in roscas where the order of ranks is randomly drawn at each cycle

friable

fulsome

viable

vulnerable