The Importance of the Informal Financial Market for Rural Development Financing in Developing Countries: The Example of Pakistan

Winfried Manig
Additional contact information
Winfried Manig: Institute of Rural Development, University of Göttingen, Germany.

The Pakistan Development Review, 1996, vol. 35, issue 3, 229-239

Abstract: The informal credit market is of crucial importance in the rural areas in Pakistan, even after decades of considerable development of formal credit organisations and of subsidised credit programmes by the government. This is due mainly to the fact that informal credit relations are embedded in the economic, political, and social interaction networks of the inhabitants in the rural areas. These interaction networks also maintain the direct credit costs and the transaction costs at a low level. However, the national development policy underestimates or even negates the significance of the informal financial market. Here, political action is required for initiating change.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/1996/Volume3/229-239.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:35:y:1996:i:3:p:229-239

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().