After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives

de la Torre, Jordi ; Giné ; , Xavier ; Vishwanath, Tara

关键词: ACCESS TO CREDIT;    ACCESS TO FINANCE;    ACCESS TO FINANCIAL SERVICES;    ACCOUNTING;    AGRICULTURAL COOPERATIVE;   

DOI  :  10.1596/1813-9450-5808
RP-ID  :  WPS5808

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In light of the recent microfinancecrisis in South India, government-run institutions ingeneral, and primary agricultural credit cooperatives inparticular, may end up playing a larger role in theprovision of financial services for the poor. Using surveydata collected in 2007 from three districts in AndhraPradesh, this paper assesses the performance of 72 primaryagricultural credit cooperatives and finds lack of trainingamong the management. In addition, primary agriculturalcredit cooperatives tend to be used as political instrumentsand, as a result, borrowers prioritize all debt obligations(microfinance institutions, informal lenders, etc.) beforerepaying their primary agricultural credit cooperativeloans. The authors suggest that if the performance ofprimary agricultural credit cooperatives does not improve, alarger government role in the supply of credit may underminethe culture of repayment.