A Model of the Political Economy of Agricultural Credit: The Case of Bolivia

摘要

The document contends that although these programs are economically oriented, agricultural development programs in LDCs are used as an instrument for consolidating political support. A model of the political economy of agricultural credit is examined and applied to Bolivia. Conclusions and policy implications are then drawn. The model demonstrates that under typical LDC conditions of direct government control of financial institutions, concessionary interest rates, defaulting, and inflation, credit is used for both economic and political reasons.