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on Central and Western Asia |
| By: | Erol Taymaz (Middle East Technical University); Kamil Yılmaz |
| Abstract: | This paper aims to contribute to the extensive study of the World Bank Commission on Growth and Development by a case study of the Turkish automotive and the consumer electronics industries. Despite a macroeconomic environment that inhibits investment and growth, both industries have achieved remarkable output and productivity growth since the early 1990s and played a critical role in generating employment and fostering growth. Although there are similarities between the performances of automobile and consumer electronic industries, there seems to be significant differences between their structures, links with domestic suppliers, technological orientation and modes of integration with the global economy. The automobile industry is dominated by multinational companies, has a strong domestic supplier base, and has seized the opportunities opened up by the Customs Union by investing in new product and process technology and learning. The consumer electronics industry is dominated by a few, large domestic firms, and has become competitive in the European market thanks to its geographical proximity, productive domestic labor, and focus on a protected and technologically mature CRT color television receivers segment of the marker, which also helps explain the recent decline in industry’s fortunes. It is without doubt that these industries could have performed even better had governments in Turkey adopted more responsive macroeconomic policies. It is certain that governments could be more responsive only if far-reaching political/institutional reforms are undertaken by changing the Constitution, and current political party and election laws in order to establish public control over the political elites. |
| Keywords: | Macroeconomic policies; automobile industry; consumer electronics industry; political elites; political reforms. |
| JEL: | F14 L60 P16 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:0801&r=cwa |
| By: | Ethem, Duygulu |
| Abstract: | In this study I aimed to describe and explain which factors affect entrepreneurship orientation. I expect that proactivity and entrepreneurial behavior is directly related, and country’s institutional factors play very important role on the entrepreneurship orientation. Therefore, I defined institutional profiles and entrepreneurship's characteristics. Institutional profiles are classified into three main dimensions which are based on Kostava’s (1997) research; cognitive, regulatory and, normative dimensions. On the other hand, following Kostova, I modified questionnaire to adopt Turkish culture and I articulated and measured these dimensions. To define operationally the perceived institutional profiles for entrepreneurship, I generated a large pool of items, as well. The institutional profile dimensions include thirty-four items; eleven for regulatory dimension, eight for cognitive dimension and fifteen items for normative dimension. On the other hand, my focus in this study is on the measurement and correlation of proactive behavior as a personal disposition relative to the stable behavioral tendency. Proactive person searches for opportunities, takes initiative, acts, but the proactive dimension of behavior is essentially rooted in people's needs to manipulate and control the environment. At the same time, the prospective entrepreneur's interpretation of the environment is also moderated by his/her beliefs about the environment. From this point of view, I selected my research sample among graduate students who are included 170 person, accepting them as potential investors. For the proactive personality measurement, which includes seventeen items, Bateman and Crant's (1993) questionnaire was used. Furthermore, data reliability was tested before the analysis has begun. To conclude, the findings of the research were discussed. |
| Keywords: | Entrepreneurship orientation; institutional profiles; culture |
| JEL: | M1 L26 |
| Date: | 2008–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7247&r=cwa |
| By: | Duygulu, Ethem; Ciraklar, Nurcan |
| Abstract: | In this study we aim to explain the patterns of leadership roles for team effectiveness in non economic organizations compared to economic organizations. For this purpose, we studied three successful organization types, i.e the amateur sports clubs (football, basketball), theater companies and, regional folk groups. Our basic hypothesis is that the relationship between the type of organization (specially teams) and the role of leadership is not random. Therefore, we believe that an empirical approach is necessary to test the assumptions about leadership and team effectiveness. Also these empirical results are supposed to lead to professional managers in economic organizations. First, we constructed thirteen key dimension variables for leadership behavior as follows: coaching, effective communication, encouraging teamwork, establishing high standards and getting results, effective delegation, rewarding performance, developing and releasing employees, building consensus, supporting reasonable risk- taking, forecast thinking, improving the organization, managing diversity, and overall effectiveness . Second, we defined team standards and effectiveness in twenty items. And finally, we tried to emphasize factors affecting leadership roles and team effectiveness. In this study, Natemeyer and Babko (1992) Management Practices Survey data are used. Data reliability are tested before the analysis and results are discussed at the end of the study. |
| Keywords: | Team effectiveness; Leadership; Roles |
| JEL: | M14 M1 |
| Date: | 2008–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7245&r=cwa |
| By: | Khanam, Rasheda |
| Abstract: | Purpose – The objective of this paper is to understand better the determinants of child labour and schooling in Bangladesh. Design/methodology/approach – This paper uses data from a survey based in rural Bangladesh and considers the children aged 5-17 years living in rural households in which the mother and father are both present. The sample size is 1,628 children. A multinomial logit model is used to estimate the determinants of schooling and working, combining schooling and work, or doing nothing for 5-17 years old children. Findings – The results show that the education of parents significantly increases the probability that a school-age child will specialise in study. The presence of very young children (aged 0-4) in the household increases the likelihood that a school-age child will combine study with work. The significant and positive gender coefficient suggests that girls are more likely than boys to combine schooling with work. The children who are sons and daughters of the household-head, as opposed to being relatives living in the household are more likely to combine study and work but less likely to specialise in work. Originality/value – The existing anti-child labour policies mainly focus on the lowering of the demand for child labour in Bangladesh. The focus of this paper is, however, on the supply side of child labour, particularly on the use of child labour in the agricultural sector and the household sector where children are mainly employed by their parents. Unlike most of the existing studies on child labour, this paper considers housework and non-market works in the definition of child labour |
| Keywords: | Child labour; School Attendance; Multinomial Logit Model; Asia; Bangladesh. |
| JEL: | O1 I2 I3 J1 J2 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6990&r=cwa |
| By: | Rahmatullah Abul Bashar Md (American International University Bangladesh) |
| Abstract: | We address the issue of convergence in agricultural productivity among districts in Bangladesh. We employed cross-section convergence test, and convergence, and panel unit root convergence test. The coefficient of the initial productivity level is negative and significant in convergence test indicating convergence in agricultural productivity. The result of convergence test shows that there has been a decrease in the cross-districts dispersion of productivity in agriculture over the entire time period. The panel unit root test supports the conventional test, and therefore, we may conclude that dispersion of productivity is stationary providing strong evidence that the districts do exhibit long run convergence. |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:aiu:abewps:24&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Despite constraints like rearing of livestock under sub optimal conditions due to low economic status of livestock owners, India has now become the largest producer of milk in the world. The development of Indian dairy sector is an unprecedented success story as it is based on millions of small producers. Government of India is making concerted efforts to raise the per capita availability of milk through increase in productivity of milch animals. In order to achieve this ambitious goal, assistance is being provided to the State Governments for controlling animal diseases, scientific management and upgradation of genetic resources, increasing availability of nutritious feeds and fodder, etc. In the present milieu, when production of dairy products to match international standards has become necessary to compete in international market of milk and milk products, steps need to be initiated to improve quality of Indian milk products with a view to boost export trade of these products in free trade regime and earn valuable foreign exchange as well as provide clean and quality milk to domestic population for their better health. |
| Keywords: | Marketing Livestock Products India |
| JEL: | F10 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7147&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Despite constraints like rearing of livestock under sub optimal conditions due to low economic status of livestock owners, India has now become the largest producer of milk in the world. The development of Indian dairy sector is an unprecedented success story as it is based on millions of small producers. Government of India is making concerted efforts to raise the per capita availability of milk through increase in productivity of milch animals. In order to achieve this ambitious goal, assistance is being provided to the State Governments for controlling animal diseases, scientific management and upgradation of genetic resources, increasing availability of nutritious feeds and fodder, etc. In the present milieu, when production of dairy products to match international standards has become necessary to compete in international market of milk and milk products, steps need to be initiated to improve quality of Indian milk products with a view to boost export trade of these products in free trade regime and earn valuable foreign exchange as well as provide clean and quality milk to domestic population for their better health. |
| Keywords: | Export Potential Livestock Sector India |
| JEL: | Q17 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7276&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The credit cooperatives in Maharashtra have shown slower growth in their membership and institutional financing. On the other hand, a faster growth has been observed in outstanding against loan advances. A lackadaisical approach of Primary Agriculture Cooperative Credit Societies (PACS) has been observed towards SC/ST members, particularly in terms of their coverage, pattern of loan advances to them and recovery pattern. The study has identified several issues that need to be taken cognizance of to revitalize the rural credit delivery system through the cooperatives. One of these is wide variations in total and crop loan advances across various districts and regions of Maharashtra. A decline in the loan advances with rise in GCA in the Konkan region is another issue, but the most important one among all is the mounting overdues and nonperforming assets (NPAs) of the cooperatives operating in both forward and backward regions of Maharashtra. The viability of two central level credit institutions, viz. Sangli District Central Cooperative Bank and Buldana District Central Cooperative Bank, has been estimated. In order to rejuvenate the rural credit delivery system through cooperatives, the major problems facing the system, viz. high transaction cost, poor repayment performance, mounting NPAs, distributional aspect of credit, low coverage of SC/ST members, etc. need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, particularly by the large farmers. |
| Keywords: | Banking Sector Reforms Cooperative Credit Institutions |
| JEL: | G00 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7274&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The credit cooperatives in Maharashtra have shown slower growth in their membership and institutional financing. On the other hand, a faster growth has been observed in outstanding against loan advances. A lackadaisical approach of Primary Agriculture Cooperative Credit Societies (PACS) has been observed towards SC/ST members, particularly in terms of their coverage, pattern of loan advances to them and recovery pattern. The study has identified several issues that need to be taken cognizance of to revitalize the rural credit delivery system through the cooperatives. One of these is wide variations in total and crop loan advances across various districts and regions of Maharashtra. A decline in the loan advances with rise in GCA in the Konkan region is another issue, but the most important one among all is the mounting overdues and non-performing assets (NPAs) of the cooperatives operating in both forward and backward regions of Maharashtra. The viability of two central level credit institutions, viz. Sangli District Central Cooperative Bank and Buldana District Central Cooperative Bank, has been estimated. In order to rejuvenate the rural credit delivery system through cooperatives, the major problems facing the system, viz. high transaction cost, poor repayment performance, mounting NPAs, distributional aspect of credit, low coverage of SC/ST members, etc. need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, particularly by the large farmers. |
| Keywords: | Banking Sector Reforms Co-operative Credit Institutions |
| JEL: | G21 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7149&r=cwa |
| By: | Raghbendra Jha; Raghav Gaiha; Shylashri Shankar |
| Abstract: | This paper presents results on the participation of rural workers in the National Rural Employment Guarantee Program based on a pilot survey of three villages in Udaipur district, Rajasthan, India. Three villages (Dhundiya, Karanpur and Prithvisingh Ji Ka Khera) were covered. Total number of households interviewed in December, 2007, was 340. Here the focus is on participation in NREG of different socio-economic groups and the determinants of the participation of these groups. It is discovered that the mean participation was 59 days and that targeting was efficient with other labour, self employed in agriculture, SC and ST as well as those with smaller landholdings benefiting the most from the program. Thus the performance of the National Rural Employment Guarantee program has been far from dismal. |
| Keywords: | National Rural Employment Guarantee Program |
| JEL: | C25 C81 D69 I38 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2008-01&r=cwa |
| By: | William R. Kerr (Harvard Business School, Entrepreneurial Management Unit) |
| Abstract: | The ethnic composition of US scientists and engineers is undergoing a significant transformation. This study applies an ethnic-name database to individual patent records granted by the United States Patent and Trademark Office to document these trends with greater detail than previously available. Most notably, the contributions of Chinese and Indian scientists to US technology formation increase dramatically in the 1990s, before noticeably leveling off after 2000 and declining in the case of India. Growth in ethnic innovation is concentrated in high-tech sectors; the institutional and geographic dimensions are further characterized. |
| Keywords: | Innovation, Research and Development, Patents, Scientists, Engineers, Inventors, Ethnicity, Immigration. |
| JEL: | F15 F22 J44 J61 O31 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:08-006&r=cwa |
| By: | Shah, Deepak |
| Abstract: | In the era of financial sector reforms, sustainability, viability and operational efficiency of rural financial institutions (RFIs) are the major issues that need to be taken cognizance of in ensuring effective rural credit delivery system. However, the major problems plaguing the efficiency of rural credit delivery system are the mounting overdue and Non Performing Assets (NPAs) of RFIs. In the state of Maharashtra, the credit cooperatives have not only shown slower growth in their institutional finance coupled with much slower growth in their membership but also faster growth in outstanding loans as against their loan advances during the reform period. The reason for this dismal scenario can be associated with adverse environment created by the financial sector reforms, which have reduced the entire rural credit delivery through cooperatives to a moribund state. The financial sector reforms have accorded greater flexibility to cooperatives to invest in non-target avenues like shares and debentures of corporates, units of mutual funds, bonds of public sector undertakings, etc. This has affected credit flow from these major institutions operating in rural Maharashtra as most of their loans meant for farm finance are diverted to investments. The estimates of this study also show not only wide variation in total and crop loan advances of PACS but also their outstanding loans, overdue and per member borrowing across different regions of Maharashtra. The outstanding loan of PACS based on per hectare GCA is seen to have exceeded loan advances with a comfortable margin in all the regions of the state. Although increase in outstanding loan with rise in loan advances and GCA is another issue, the most important one among all is the mounting overdue and NPAs of cooperatives that sets a path where from there is no return and, which ultimately leads to inefficiency in cooperative credit delivery. In order to rejuvenate rural credit delivery system through cooperatives, the major problems facing the system, viz., high transaction cost, poor repayment performance, mounting NPAs, distributional aspect of credit, coverage of various social groups, etc., need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, particularly large farmers. In fact, insofar as the rural credit delivery system is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development. |
| Keywords: | Cooperative Credit Region-wise Analysis |
| JEL: | G00 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7275&r=cwa |
| By: | Shah, Deepak |
| Abstract: | In the era of financial sector reforms, sustainability, viability and operational efficiency of rural financial institutions (RFIs) are the major issues that need to be taken cognizance of in ensuring effective rural credit delivery system. However, the major problems plaguing the efficiency of rural credit delivery system are the mounting overdue and Non Performing Assets (NPAs) of RFIs. In the state of Maharashtra, the credit cooperatives have not only shown slower growth in their institutional finance coupled with much slower growth in their membership but also faster growth in outstanding loans as against their loan advances during the reform period. The reason for this dismal scenario can be associated with adverse environment created by the financial sector reforms, which have reduced the entire rural credit delivery through cooperatives to a moribund state. The financial sector reforms have accorded greater flexibility to cooperatives to invest in non-target avenues like shares and debentures of corporates, units of mutual funds, bonds of public sector undertakings, etc. This has affected credit flow from these major institutions operating in rural Maharashtra as most of their loans meant for farm finance are diverted to investments. The estimates of this study also show not only wide variation in total and crop loan advances of PACS but also their outstanding loans, overdue and per member borrowing across different regions of Maharashtra. The outstanding loan of PACS based on per hectare GCA is seen to have exceeded loan advances with a comfortable margin in all the regions of the state. Although increase in outstanding loan with rise in loan advances and GCA is another issue, the most important one among all is the mounting overdue and NPAs of cooperatives that sets a path where from there is no return and, which ultimately leads to inefficiency in cooperative credit delivery. In order to rejuvenate rural credit delivery system through cooperatives, the major problems facing the system, viz., high transaction cost, poor repayment performance, mounting NPAs, distributional aspect of credit, coverage of various social groups, etc., need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, particularly large farmers. In fact, insofar as the rural credit delivery system is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development. |
| Keywords: | Institutional Credit Cooperatives Region-wise Analysis |
| JEL: | G21 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7140&r=cwa |
| By: | Dutta, Jayasri; Horsewood, Nicholas; Vasilakos, Nicholas |
| Abstract: | We use panel data for fourteen Indian states to assess the influence of public infrastructure on industrial activity, namely productivity, employment, real wages and investment, at the state level and over the period 1974-1998. Our results indicate that the length of national highways has on average the greatest impact on each of the four measures of industrial activity. While the length of national highways and electricity generating capacity are found to be important determinants of state real wages and productivity, total highway length is a key variable in determining the level of investment in fixed capital in each state. |
| Keywords: | Industrial activity; productivity; infrastructure; wages; investment |
| JEL: | H54 R12 D24 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7184&r=cwa |
| By: | Vladimir Gligorov (The Vienna Institute for International Economic Studies, wiiw); Leon Podkaminer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Fast economic growth - in excess of 5% per year - continues in most New EU Member States (NMS). Growth in Bulgaria and Romania (which joined the EU on 1 January 2007) was also accelerating throughout 2006. Everywhere, except Hungary, GDP growth has been driven predominantly by domestic demand. External trade, which significantly boosted GDP growth in a number of NMS in 2005, has been losing significance and continues to be a drag on growth in Bulgaria and Romania. wiiw growth forecasts of the GDP in individual NMS in 2007 and 2008 are looking very good. It is expected that household consumption will continue to rise strongly. Rising employment and wages (strengthening under the impact of emerging labour shortages) will be supportive. Rising remittances of migrant workers would be adding to fast rising consumer spending. Gross fixed capital investment is expected to remain strong in most NMS. With the exception of Hungary, fiscal policies will not interfere with real growth. The slight deceleration of growth in the EU-15 expected in 2007 is not likely to restrict the growth of both NMS exports and their overall GDP too much as further gains on industrial unit labour costs are expected. Given the ongoing structural changes and quality improvements in production and exports, the NMS should continue to gain market shares even despite further currency appreciation. However, growth in imports responding to growing domestic demand will be reducing the contribution of trade to GDP growth. This contribution is likely to be negative in the 'old' NMS, but small. In Bulgaria and Romania, the contributions of external trade to growth will be negative and large. Unlike the 'old' NMS, these two countries will be running very high current account deficits and rely on rising private foreign debt in order to finance consumption and investments. The risk of making big errors in growth forecasts for the 'old' NMS is fairly low. Their fundamentals are nowadays much sounder than in the past (Hungary being temporarily an exception). The rates of inflation are quite low and firmly under control. Interest rate differentials vs. the major international currencies are also low, falling, or even negative. Incentives for potentially destabilizing speculative capital inflows (and outflows) are therefore weak. Nominal currency appreciation is likely to continue, signifying the NMS' economic strength rather than potential weakness. The estimates of GDP growth rates for Bulgaria and Romania may be less certain. Both countries are growing turbulently. But, as in the Baltic countries, their growth is to a large extent induced by booming household consumption which is credit-driven and fed by excessive imports. Yet the experience of the Baltic countries indicates that such a type of growth can go on for a very long time. However, there are many examples of such debt-financed expansions coming to a rather sticky end. Thus, it might come as no surprise were the rising debt burden to put a lid on further expansion in Bulgaria and Romania. The Balkan economies continue to grow despite political risks and external shocks. Consumption is the main source of growth, with investments also increasingly contributing. High exports are accompanied by high imports and external balances remain strongly negative. Price and exchange rate stability, however, remain manageable because of strong growth of productivity and downward pressure on wages from excess supply of labour. The expectation of sustained growth is supporting growth of foreign investments in privatized assets but also increasingly in green-field projects. Fast rising prices of assets and declining interest rates due to strong credit expansion are proving worrisome for the central banks, which fear asset bubbles and weaknesses in the banking sector. These challenges are met with a tightening of monetary policy, which has led to some moderation of growth rates. Overall prospects are positive for growth and stability in the short and medium run. The main risks to positive expectations emanate from remaining political problems and from doubts about the process of EU integration and accession. The major political risk is connected with the upcoming decision on the Kosovo status. If that risk is managed well and if other political problems are addressed that will make it possible for all the countries in the region to either sign association agreements with the EU or continue or start negotiations on membership in the EU, rather positive economic news should be coming out steadily from the Balkans. That would also help the region to address the serious social risks, especially those connected with high or very high unemployment. Overall, prospects for growth are good in the short and medium run and prospects for stability are risky in the short run and good in the medium run. The region as a whole should be included in the EU by 2015, except perhaps for Kosovo and Turkey. Russian economic growth was once more over 6% in 2006, the cumulated GDP has increased by more than 40% since 2000. GDP growth is driven by the surging private consumption, recently also by investments. Owing to sluggish exports and booming imports, the contribution of real net exports to GDP growth has been negative already since 2003. The economic outlook remains positive with both consumption and investments (including FDI) growing rapidly. However, wiiw expects growth to settle between 5% and 6% in the coming years. With more oil and gas money as well as power consolidation at home, Russia's self confidence will grow further. In Ukraine, GDP growth accelerated markedly in 2006; macroeconomic imbalances were largely avoided and the 'gas price shock' reasonably well digested. Foreign debt increased by some 25%, reaching 47% of GDP by the end of the year - mainly caused by the banking sector's rapidly growing external borrowing, possibly associated with the growing presence of foreign banks. Inflation apart, the country's short-term economic outlook is good. In 2007 2008 we expect economic growth close to 6%. Despite the persistent stand-off between the president and the prime minister, the country is now living through a period of its greatest political stability since the 'orange revolution'. In China, GDP grew by 10.7%, driven by investment and an exploding trade surplus but supported by private consumption as well. For 2007-08, prospects remain good but a slight deceleration of growth may occur, due to a certain slowing down of investment and measures to contain the trade surplus. |
| Keywords: | Central and East European new EU member states, Southeast Europe, Balkans, former Soviet Union, China, Turkey, GDP, industry, productivity, labour market, foreign trade, exchange rates, inflation, fiscal deficits, EU integration. |
| JEL: | O52 O57 P24 P27 P33 P52 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:335&r=cwa |
| By: | Christophe J. Godlewski (Laboratoire de Recherche en Gestion et Economie, Université Louis Pasteur); Laurent Weill |
| Abstract: | There has been a considerable expansion of the volume of syndicated loans in emerging markets in the recent years. We provide the first analysis of the determinants of the decision of banks to syndicate a loan on a sample of loan facilities from 50 emerging countries. We show the significant role of loan characteristics and of financial development, banking regulation, and legal institutions, on the decision to syndicate a loan. We support the efforts of authorities to increase banking competition and efficiency, and to implement binding banking regulation on capital requirement to promote the expansion of syndicated loans. |
| Keywords: | Bank, Loan, Syndication, Emerging Markets, Logit Regressions. |
| JEL: | G21 C25 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2007-03&r=cwa |
| By: | Tazul Islam (American International University Bangladesh) |
| Abstract: | The wisdom in rural finance has long been that lending to and saving by the poor is doomed to failure: costs are too high, they are not creditworthy and they are not able to save. A number of success stories in microfinance industry (MFI) have changed this pessimistic assessment during the past twenty years or so. Recounting the failure of traditional financial liberalization theory in ensuring the access of the rural poor to the institutional sources of finance, this paper, taking the Grameen Bank (GB) of Bangladesh- the cradle of microfinance movement, as a case study, argues for a continuation of the support towards institutional innovation in MFIs that will help achieve the goal of ensuring the access of the rural poor to the institutional sources of finance. |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:aiu:abewps:34&r=cwa |