Rural financial services as a development factor

To begin, it discusses four reasons for the recent interest in financial markets: inflation, foreign debt, urban bias, and the deficiencies of traditional agricultural credit programs. The conceptual framework for the design of these programs is then evaluated. Lack of institutional viability, borrower domination, mistrust of the market, and savings pessimism are examined in this connection. The contributions of finance to development are explored in terms of access, transfers of purchasing power, quality of services, and transaction costs. The elements of Ohio State University"s new vision are highlighted, and the promotion of rural financial markets examined in terms of environment, policies, institutions, and technologies. (Author abstract)