Development finance in rural Niger : structural deficiencies and institutional performance

The Caisse Nationale de Credit Agricole has incurred substantial losses through high transaction costs; however, its formal accounting procedures disguise this poor performance. Its 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. (Author abstract)