Improving Donor Intervention in Rural Financial Markets

摘要

Credit project design largely determines credit project performance. Criticisms of the performance of donor-supported credit projects often cite problems which can be traced to project design flaws. The principal modifications required for a reorientation of donor approaches to farm credit include (a) recognition and accommodation of risk, (b) attention to creating confidence in debtor-creditor relationships, (c) viewing finance as part of a process rather than as an input, and (d) consideration of non-financial as well as financial means of creating debt capacity. Taken together, these imply a dramatic change in credit project conceptualization. Taken partially, these should still prove effective for making useful incremental changes in project design.