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Linking Formal and Informal Financial Intermediaries in Ghana: Conditions for Success and Implications for RNR Development

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Type: Working Paper
Author: Jones, Howard O.; Sakyi-Dawson, O.; Harford, Nicola; Sey, Aba
Date: 2000
Agency: Overseas Development Institute, London
Series: Natural Resource Perspectives, no. 61
URI: https://hdl.handle.net/10535/4290
Sector: Social Organization
Region: Africa
Subject(s): rural development
informal economy
Abstract: "Small-scale credit provided under appropriate conditions has long been recognised as an engine of rural development, and informal institutions have played an important role in providing this. However, their capacity is limited, but formal institutions with much greater financial capacity rarely reach rural people because of the risks and transaction costs. Describing how in Ghana the two types of institution have worked together, to their mutual advantage and to that of small-scale rural traders and borrowers, this paper draws out the preconditions that must be in place for linkages of this kind to prosper elsewhere."

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