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Small industry in developing countries : some issues

By: Material type: TextTextPublication details: Washington; "Development Economics Department,World Bank"; 1984Description: 73: illSubject(s): DDC classification:
  • 338.642 And
Summary: The paper discussions how two factors lead to an unwillingness of financial institutions to finance small-scale industry and agrliculture 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. It concludes that these schemes would work better, however, if the adminsitrative controls were relaxed. The paper draws on the observations made during the course of project work in several countries.
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The paper discussions how two factors lead to an unwillingness of financial institutions to finance small-scale industry and agrliculture 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.
It concludes that these schemes would work better, however, if the adminsitrative controls were relaxed. The paper draws on the observations made during the course of project work in several countries.

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