Eder (finance)
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Eder or Idir (
Amharic Amharic ( or ; (Amharic: ), ', ) is an Ethiopian Semitic language, which is a subgrouping within the Semitic branch of the Afroasiatic languages. It is spoken as a first language by the Amharas, and also serves as a lingua franca for all oth ...
: እድር), is a
social institution Institutions are humanly devised structures of rules and norms that shape and constrain individual behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions a ...
in
Ethiopia Ethiopia, , om, Itiyoophiyaa, so, Itoobiya, ti, ኢትዮጵያ, Ítiyop'iya, aa, Itiyoppiya officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the ...
used for mutual aid and grants cooperative
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
within specific community. It is an association that primarily assists people with self-help activities or infrastructure, and victims with bereavement such as funeral and other security issues in the community. Along with
Equb Equb or Iqub ( Amharic: እቁብ) is an association of people in Ethiopian culture with the aim of mobilizing resources, especially finance, and distributing them on a rotating basis. It is distinguished from Eder by duration of time; Equb is ...
, Edir is the traditional form of social institution in Ethiopia, despite varied by duration of time. Eder is distinguished from Equb that it is long-term association, whereas Equb can be temporary and permanent.


Function

Eder enables community for mutual aid related to funeral and other community concerns. Eder is distinguished from Equb by duration of time where Eder is long-term association and Equb can be temporary or permanent, depending on the needs of members. Eder is major form of indigenous arrangement utilized mainly for assisting victims in bereavement. These associations also give self-help activities and sometimes provide insurance in an informal manner. The association also raises funds and coordinates free labor of members in activities such as building roads, schools, health institutions and others. Another function of eder is safety insurance when the member of association encounters property (i.e. house) destruction and experiencing farming loss. It also compensates pensioned members who critically unable to pay contribution. Eder was first developed by migrants to
Addis Ababa Addis Ababa (; am, አዲስ አበባ, , new flower ; also known as , lit. "natural spring" in Oromo), is the capital and largest city of Ethiopia. It is also served as major administrative center of the Oromia Region. In the 2007 census, t ...
in the early part of twentieth century, passed through the time of Italian occupation with increasing currency, formalization, diffusion and transformation from mono- to polyethnic voluntary organizations. Eder did not participate in developmental activities such as education and healthcare services or community development, fearing interference to state.


References

{{Reflist Banking in Ethiopia Social institutions Ethiopian culture