Development Finance in Rural Niger: Structural Deficiencies and Institutional Performance
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 1793
Niger has been poorly served by its formal rural financial system. The Caisse Nationale de Credit Agricole (CNCA) has incurred substantial losses through high transaction costs however its formal accounting procedures disguise this poor performance. It's role was little more than a conduit to supply inputs. Other properties of financial intermediation were ignored and counterproductive centralized targeting was rampant. Total transaction costs of the system were shown to be quite high and financial viability impossible in the current organization. Necessary organizational reforms to achieve viability are discussed.
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