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Financing small-scale industry and agriculture in developing countries : the merits and limitations of "Commercial" policies (anglais)

The paper discusses how two factors lead to an unwillingness of financial institutions to finance small-scale industry and agriculture in developing countries: (a) controls on interest rates, and (b) the initially high risks and administrative costs involved. Most economists appeal for a relaxation of the controls. But by reference to the observed reactions of the institutions to (b), it is shown that this policy alone would not achieve an efficient...
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