Public-private partnerships in micro-finance: Should NGO involvement be restricted?
AbstractThis paper examines public-private partnerships in micro-finance, whereby NGOs can help in channelizing credit to the poor, both in borrower selection, as well as in project implementation. We argue that a distortion may arise out of the fact that the private partner, i.e. the NGO, is a motivated agent. We find that whenever the project is neither too productive, nor too unproductive, reducing such distortion requires unbundling borrower selection and project implementation, with the NGO being involved in borrower selection only. Further, we compare and contrast two alternative credit delivery mechanisms, the linkage mechanism (which is the focus of this paper), with the 'Grameen' one.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 90 (2009)
Issue (Month): 2 (November)
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Web page: http://www.elsevier.com/locate/devec
Public-private partnerships Micro-finance Motivated agent NGO Ownership;
Other versions of this item:
- Jaideep Roy & Prabal Roy Chowdhury, 2008. "Public-private partnerships in microfinance: Should NGO involvement be restricted?," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-11, Indian Statistical Institute, New Delhi, India.
- Roy Chowdhury, Prabal & Roy, Jaideep, 2007. "Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?," MPRA Paper 4469, University Library of Munich, Germany.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- H5 - Public Economics - - National Government Expenditures and Related Policies
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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