Prospects, problems and potential of credit-granting NGOs
Recently NGOs have begun to be regarded as ideal providers of credit to small and micro businesses. The paper investigates whether this claim is justified and how the co-operation between donor institutions and NGOs should be structured. It reports the main results of an empirical investigation of the financial efficiency of credit-granting NGOs. These results cast serious doubts on the ability of NGOs to be viable institutions and lead the authors to suggest an institution-building approach of co-operating with NGOs as a promising alternative. Such an approach requires that donors assume a much more active role than they have played up to now.
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Volume (Year): 8 (1996)
Issue (Month): 2 ()
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