New Economics Papers
on Microfinance
Issue of 2007‒08‒18
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted? By Roy Chowdhury, Prabal; Roy, Jaideep

  1. By: Roy Chowdhury, Prabal; Roy, Jaideep
    Abstract: This paper examines public-private partnerships in micro-finance, whereby NGOs can help in channelizing credit to the poor, both in borrower selection, as well as in project implementation. We argue that a distortion may arise out of the fact that the private partner, i.e. the NGO, is a motivated agent. We find that whenever the project is neither too productive, nor too unproductive, reducing such distortion requires unbundling borrower selection and project implementation, with the NGO being involved in borrower selection only.
    Keywords: Public-private partnerships; micro-finance; motivated agent; NGO.
    JEL: O17 H5 G28 G21 E62
    Date: 2007–08–14

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