Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?

Prabal Roy Chowdhury () and Jaideep Roy ()

MPRA Paper from University Library of Munich, Germany

Abstract: This 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.

Keywords: Public-private partnerships; micro-finance; motivated agent; NGO. (search for similar items in EconPapers)
JEL-codes: O17 H5 G28 G21 E62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-mac, nep-mfd and nep-ppm
Date: 2007-08-14
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http://mpra.ub.uni-muenchen.de/4469/

Related works:
Working Paper: Public-private partnerships in microfinance: Should NGO involvement be restricted? (2008)
Journal Article: Public-private partnerships in micro-finance: Should NGO involvement be restricted? (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:4469

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