I Fiance Apicultural

More documents

Recommendations

Info

120 'lulis hypolthetical exercise shows that public llicy should aim at building a relevant and robust RFI system, together with setting interest rates that are conducive to achieving the threefold fundamental objectives. Such a policy requires promotion of a vertically and horizontally integrated RFI system. Sustained and disciplined integrated institutional credit of this type has the potential to reduce the interest rates of informal lenders, a rate that decreased by 25 percent over two decades following 1951 in 13 developing countries, including Nigeria in Afiica; India, Indonesia, Pakistan, the Philippines, Soudi Vietnam, Sri Lanka, and Thailand in Asia; Colombia, londuras, and Mexico in Latin America and the Caribbean; andJordan and Lebanon in the Middle East (Wai 1972).
10 Conclusions and Implications ased on this review of the literature, it appears that agricuitural credit policy in most countries int the world aims to facilitate rural growth with cquity, integrate rural financial markets, and enlarge the economics of scale and scope for viability of formal RFIs, that is, public and private lending institutions such as commercial banks. Lessons learned fnom the cross-national atalysis iilicate that two main instiruents required for achieving these goals are promoting appropiate RFIs and maintaining interest rates that are conducive to the fulfillment of these goals. These policies to develop RFIs have worked best in the context of itew teclhnology that redtce; the cost of"production per unit of oultpult. Such policies follow an approach to the developmenlt of RFIs wherein supply ilntcracts with dentand. '[his is indeed different fro il supply-lealding and dctIt id-fbIllowing alproaIches. Modern forms of capital and art efficient capital nhtket infhlence not only prices but also growth and emiployment. Rural financial market development is a conplex process. This is becameise agriculture is sinallscale, geographically widely dispersed, weaticr-dependent, highly cornplenentary in its production l)roce.ss, only partially commercialized, and deprivecd of basic infiastructure and education. It is also because in developing cotrntries rural loan demtand is more elastic to tle real interest rate thanIrtmural savings it general and Inral financial deposits in partictrlar. But the borrowing, saving, and deposit responses of rural hotiseholds to tre availability of accessible and appiropriate RFIs are elastic. Thus, a widespread system of rural branches is important. Itt these circumstances, thtere are liitits to how trurch interest rates cart be raised to improve the margins for RFIs. Similarly, ill the early period of developrtlitit of t wnse institutions, there may be scale diseconomies. These suggest Ihtat promotion ofa vcrt ically and horizontally integrated fortmal RFI system is ncccssaly lb(TaltsC such Ia system has the potential to real scale an d scope ecortorIries, besides achieving the two other objectives: i-rial growtll with equity and integration of rural financial markets. Further, in many countries, government support takes the form of contributions to eqtrity capital, rediscotting facilities, adminiistered interest rates, and credit and deposit insurance guarantees. While such support is common, the policy attention paid to promoting appro priate RFIs is limited and urststaincd. lie only major exceptions are Japan, Taiwan, the Republic of Korea, and the United States, where RFI systems are successful. 121
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 and 12:
Foreword Thiis report introduces a
Page 13 and 14:
1 Summary This study analyzes two 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 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 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: Table 5 5 -Continued 119 cin scenar
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

Create successful ePaper yourself

Delete template?

Save as template?