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A Push towards Revitalizing Rural Financial Institutions: Lessons from Mexico’s PATMIR Project

In: Promoting Microfinance

Author

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  • Julia Paxton

Abstract

Despite strong evidence that links financial development to economic development (Levine, 2005; Demirgüç-Kunt et al., 2008), it is estimated that approximately two-thirds of the population in developing countries does not have access to formal finance (Pinar Ardic et al., 2011). In rural areas, the situation is much worse. A World Bank (2000) survey of marginalized rural areas in Mexico found that only four per cent of households utilized formal finance. The question that naturally arises is why this void of formal financial services exists and what can be done to improve financial penetration into rural areas.

Suggested Citation

  • Julia Paxton, 2013. "A Push towards Revitalizing Rural Financial Institutions: Lessons from Mexico’s PATMIR Project," Palgrave Macmillan Books, in: Ronny Manos & Jean-Pierre Gueyié & Jacob Yaron (ed.), Promoting Microfinance, chapter 4, pages 56-76, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-03491-5_4
    DOI: 10.1057/9781137034915_4
    as

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