A Critique of Loan Targeting and What to Do After Overcoming the Habit
Loading...
Date
1993-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Ohio State University. Department of Agricultural, Environmental, and Development Economics
Abstract
Loan targeting has been a popular development tool, especially in centrally planned countries, for addressing poverty and to speed development. The results of these efforts, however, have often been disappointing. Three weaknesses of loan targeting are discussed and suggestions are also given on how financial markets might be better used after reforms have subjected most economic decisions in rural areas to market forces.