Design Issues in Rural Finance

Design Issues in Rural Finance

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World Bank Discussion Paper No. 291. Discusses the major issues associated with transforming and improving payment systems in emerging market economies. Economic activity requires a system of payments to facilitate trade and exchange between consumers and suppliers of products and services. This paper looks at the differences between payment systems in centrally planned and market economies. The authors examine both short- and long-term methods of improving payment systems. Distinctions between the various payment instruments are made, and the roles of country size, banking structure, and institutional framework are discussed. An appendix provides a summary checklist of information needed to plan adequately for changes in payment systems.In the process of intermediating rural deposits to urban investment, capital is invariably moved out of the rural sector. While a net outflow of ... In some countries, agriculture banks do not take deposits and depend entirely on external sources of funds. This system is not a ... This strategy should not result in market segmentation as long as institutions are competitive and market-based. This conceptualanbsp;...

Title:Design Issues in Rural Finance
Author:Orlando J. Sacay, Bikki K. Randhawa
Publisher:World Bank Publications - 1995-01-01


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