I Fiance Apicultural

More documents

Recommendations

Info

Acknowledgments IWc arc particularly gratefil fbr the generous help of )ale W. Adams, without which tins study would not have 1)ccn possil.c, lIle facilitated our access to te valuable library collectioil at Ohio State University, guided us to ilh(ivol iiillols literature gencrated by the programi with which li ias loing 1ccit associa!rd, cotrusiIIctively coi 1iliented ol- the ilnitial resc;uch 1 rposal aod notws, ald arguedolong and hard with us ol points of disaglt'enculctt. So c suttch disagi'ceiiclit Coilfillies, evel though ititittcd ;is a rcs'Il oF oll. discussions, mid riovides a basis [ot- fil tlier rescalch. We alc also gratchil to Carlos F. (uevas, Douglas II. (iah:i, antd Richid L. Meyer, also)of Ohio State LJnivrcsity, for shariing theil pioneier ing work anld foi ecourlagilg discussion. We arc equally giatwfil to th Iiclle l aiodw associated athers with the Reserve Bank of India's Agricudiurah Cldit (;onmllitt e, oi which .1oire Mellor scrved, aod jsauticulaily to tile c'ltaii'ita, Ali Kl tsio; tle nciller secretal,, C. V. Nair; all th llw govcnlor of the Reserve Bank oflildia, R. N. ialholtra. Nihli that is iolecled il this report arises froll the insighls folll that itajiol ilVl le)tli au lv'sis ;111(1 Itoli illt crtioll with ihe va'ious Illill)v'ls amlo asso iat(,s of, the ('OIlilllit(('. We ait tlaikl'ul to Raisuddixi Ahlncd, I laold Aldcriail, Maik Roscgrlt, and Stcphc \'osti ofd" IPRI, who c-ommeldted oil Ilhc initial lroposal anl notcs. li the coutise of this stld' .c rccci'ove valuable COMlinlits Iltiot Raisliddil .\hlcd, Jolclhiim \.oil ISrin, M. I.. Dallwala, (himvlt l)'.sai, I Iiman ljzckicl, N'uiil Islam, Solmil Malik, Michael I lptoui, : Jay Oza, Mark lRose'grlt, anld Vi!jay S. \'\yas. \V, also, llol+-llynlnOls reviewers Fi' their colllllettS. \';isall '(,maidhi, Ncvillc Fliirisiigic, Dayanthatlml~Nabil Khlldi, Sllubhi I nimu, Bnlucc Sitolit, anod Sidhir' Waninali made slpccific conlotilutiolis at pils ill the i'usc of the stldy for which we owe special tIanks. We ;lso wish to thaink Mlai'k lPhilipps ad Ellen Tipper, whose assistance ill liticaitui iceiew and daa collatioI and processing w;Is intvalualle, and Suiltitt', Boca, RaIul Pa.,:dva-lorch, and Suinan Ruslagi FOi their l ittl lv ltol 'Ot 1 llip tc lt :tssistait'. We also ha illte bchielits of (coilicits of tilel, itadin)iits of Ow scitilla Ot toilchlology pouic\ held ill vaculv July 1990 at Illc I laPue, wlCic a brief petlr on this stit(l w;is picscit's dl. WVc would Cspecially thank BiaiOc -loleilo for his cOlliill(ilt oil thait )aier. Finally, we arce gratefitl to the Initi lnsiisutc of Manageient, Ahincdalbad, hidi a, for Ii i' role ill Facilitat iig lhis rescalrch ail allowing Bhi)at Desai to take tle exi Cd IGleave wiilhui wichiis study could not have I)dli coilil)]cltd. x Bliipat M. Desai Johnil W. Mellor
1 Summary This study analyzes two areas of agrictiltural credit policy: institlu tional dcvelopiment and interest rates. III the first area, it deals with relative roles of institutionral and riollinistilutional lenders ill the Iroccss of ccoliOllic deCveJrllenit; orgailizal ional JprinciplCs for dievelo)ilg riiral financial irislituilimts (RFIs); and institutioal lendcrs' transaction (administrative) costs, their ecoijoinics of' scale, and t!ieir effects oil developmennt. (TICse econ omics of scale arise From the volunic antd comiposilion of bisiniess opcrations.) In the second area, it con'ceitrais oil uIhie ilipact of recal ilterest rates oil dllialnci for Iural loans, sul)yl of rural fiiajicial de p osits, and supply of rural savings. The analysis is Iased oil an inlcnsive review of ilte voliinii us litcratiure on rural crcTi. lhe raigc of expcricce with RFIs is illnicnse, and that experlclic covers a wvidce rallge of coindilionls. It is high tille that such experien cc was ordered and allaIyzed fbr the Ibroacd belefit of dcvclopinig coulltries. Oil severll issues, it has beci possible to use existing data Sets to pil1iSli. analysis beyolnd that coitaillcd ill the published and utiliuiblished souirces. Of coulsc, the nIIIIIrbCr of variables relating to rural financial markets is griatcr than even die large nuritlber of stuidies perused; hence only liilited ise. of standard statistical techniques is made for analyzing rclationships. This study depends inistead oii simple tabulations, Icaveld ill soei relatively simple circiiuistaliices by regression analysis. Further, exte isive use is iiiadc of a s1iiall inber of il-depth case siudics to brinrg oit par-licIlarly important and comiplex relationships. Although the studies used vary ill quality and in detail, the nurniber of studies is sulfficictltly large to draw clear coiiclursionis about the ccnitral tleldency. Such an iiturlisive, systematic, and analytic rcview of"a large li|teratlre would bc incolliplctc, if iot siliscless, if' the insights gicratcd alolg dIe way werc ilot used to I'ach cleal" policy reconlndatiolls. IInce, ith approach is fraillcd ill a Ilialilr (ihat points to s)ccific key areas of policy conclusion. This also scrvcs Ih plurrposc of sharlpering thew tebatc. In this conitext, six groups of' questions are aIdIressed: (1) Wily l)rorioi c formal RFTs, and whal is tlie historical experience ill this regard? (2) What organizational principles arc needed to encourage alppropriate RFIs? I)o such in stitutions exist, or arc tihey eliergirng? (3) Vhat are tire transaction costs of tlie RFs? Arc the RFIs viable and sustainable, and why? (I) WIiat is tile impact of real interest rates and iori[)ricc fiactors on irirl loan dcemald, stj)i)ly of rural deposits, and supply of rural savings? (5) What determines whether an institutional
Page 1 and 2: ,AFOOD POLICY EVIEWl Institutional
Page 3 and 4: FOOD POLICY REVIEW 1 Institutional
Page 5 and 6: Chapter One Chapter Two Chapter Thr
Page 7 and 8: 15. Unit transaction costs, unit ir
Page 9 and 10: 47. Relative importance of intcecst
Page 11: Foreword Thiis report introduces a
Page 15 and 16: 3 Six organizational principles for
Page 17 and 18: 2 Introduction Finance and Economic
Page 19 and 20: An obvious problem innate to an act
Page 21 and 22: 9 Selection of Theme and Issues for
Page 23 and 24: I1 TIhe issue of scale economies is
Page 25 and 26: 13 There is also a problem of indiv
Page 27 and 28: 15 Figure I-Share of borrowing of f
Page 29 and 30: 17 Figure 2-Share of'agricultural l
Page 31 and 32: 19 specific or economywile developm
Page 33 and 34: Table 1- Continued 21 Region, Count
Page 35 and 36: Table 2-Continued Government Nation
Page 37 and 38: 25 regional without higher or lower
Page 39 and 40: 27 Caribbean, compared with Asia. T
Page 41 and 42: Table 3 -Continued Proportion of Pe
Page 43 and 44: 31 LICs (including Bangladesh, Indi
Page 45 and 46: 33 Functional Structure of RFIs and
Page 47 and 48: 35 approximated from available lite
Page 49 and 50: Figure 3-Stylized organizational fr
Page 51 and 52: 5 Transaction Costs, Profitability,
Page 53 and 54: 411 or fiom new borrowers. Moreover
Page 55 and 56: 43 Table 6-Unit transaction costs o
Page 57 and 58: 45 tiotis largely by borrowing fi'o
Page 59 and 60: 47 Table 9 -Transaction costs of br
Page 61 and 62: 49 'T7heSonali Bank's unit uct marg
Page 63 and 64:
Table 14-Estimated parameters of th
Page 65 and 66:
53 PACS) was established ill March
Page 67 and 68:
55 Table 16-Deposit growth rates of
Page 69 and 70:
57 rIIIIal Output (28 p)Celt) and o
Page 71 and 72:
59 Although APS loans were dominant
Page 73 and 74:
Table 2 0-Pattern of loans advanced
Page 75 and 76:
63 Table 2 1- Unit profit and unit
Page 77 and 78:
65 resources are mainly channeled t
Page 79 and 80:
67 Table 25-Various costs, gross ma
Page 81 and 82:
69 BAAC also en1joyced sc.;le ,~ol
Page 83 and 84:
71 iuzividual farmers at the distri
Page 85 and 86:
73 Agriculture and Cooperatives 197
Page 87 and 88:
75 like the county and plimaly coop
Page 89 and 90:
77 Table 33-Transaction and financi
Page 91 and 92:
79 Table 3 6 -Structure of assets a
Page 93 and 94:
Response of Rural Loan Demand to In
Page 95 and 96:
83 Table 3 9-Estimated multivariate
Page 97 and 98:
85 Table 40-Estimated multivariate
Page 99 and 100:
87 separate deteriminants of demand
Page 101 and 102:
Table 4 1-Continued Type of Demand,
Page 103 and 104:
Table 4 1-Confinued Type of Demand,
Page 105 and 106:
Table 4 2 -Evidence on interest ela
Page 107 and 108:
7 Response of Supply of Rural Depos
Page 109 and 110:
Page 111 and 112:
99 Table 4 6-Relative importance of
Page 113 and 114:
101 I1e positivc respolse of supply
Page 115 and 116:
Table 48- Continued 103 eBased on t
Page 117 and 118:
Table 4 9 -Pattern of total rural s
Page 119 and 120:
107 is substantial saving even in d
Page 121 and 122:
Page 123 and 124:
111 nient), and lastly, the inverse
Page 125 and 126:
113 Table 54-Positive and negative
Page 127 and 128:
9 Flow of Funds of the Rural Financ
Page 129 and 130:
117 interest I'evellie and payment.
Page 131 and 132:
Table 5 5 -Continued 119 cin scenar
Page 133 and 134:
10 Conclusions and Implications ase
Page 135 and 136:
123 differential increase in demand
Page 137 and 138:
125 can be attained. Multifunctiona
Page 139 and 140:
127 fully achieved. Had the institu
Page 141 and 142:
129 so doing, improvements in verti
Page 143 and 144:
The standard error of The standard
Page 145 and 146:
Appendix 2 Reasons for Delinquency
Page 147 and 148:
Region/Country 135 Reaso.z Near Eas
Page 149 and 150:
References Abbott, J. C. 1 9 7 3a.
Page 151 and 152:
139 Aku, P. S. 1986. Lending to far
Page 153 and 154:
141 Caibbean Country Department II,
Page 155 and 156:
143 144. Princeton, N.J., U.S.A.: W
Page 157 and 158:
145 1975. Agriculturalcredit in Asi
Page 159 and 160:
__ 147 Gurley, J. G., and E. S. Sha
Page 161 and 162:
149 G. Hunter and A. F. Bottrall, 5
Page 163 and 164:
151 Lee, T. Y., D. H. Kim, and D. W
Page 165 and 166:
153 __ _. 1976. The new economics o
Page 167 and 168:
155 Olu, W. 1985. Formal credit and
Page 169 and 170:
__ 157 Rao, B. P. 1970. The economi
Page 171 and 172:
159 Singh, G., and S. R. Asokan. 19
Page 173 and 174:
-- 161 Verghese, S. K. 1983. tivfit
show all

I Fiance Apicultural

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?