Accounting & Finance
Informal
Micro credit And Economic Activities In Rural Areas: A Framework For
Policy Analysis
Introduction
AFRICA'S
development challenges go deeper than low income,
falling trade shares, low savings and low growth, but also include inequality and uneven access to
productive resources, social exclusion and insecurity
(Pitamber, 2003). However, more specific concern is raised in
Nigeria due to rural-urban disparities in income, access to
education, health-care services and prevalence of ethnic or boundary
conflicts, in particular. The apparent dearth of productive
resources, most especially credit from the formal financial
sector for rural dwellers to improve their
welfare, has attracted significant attention. (Aryeetey, 1998).
The dearth of formal credit in rural areas
arises from low population densities, poor infrastructure,
policy and institutional problems, remote difficult terrain, and the
small value of individual savings and loan
transactions. Besides, the cost of providing services
to rural areas is high, since the cost of opening branches in
villages and small towns is not justified by the business that can be generated, and these are the reasons why formal
banks could not really purvey
microcredit (Garuba, 19SS; Akanji, 2001; World Bank, 1989).
The
Nigerian Government has also designed various programmes to deliver micro-credit in rural areas. These programmes
have individually and collectively been unable to
provide a sustainable micro-credit delivery system in the rural
areas because of their inability to meet credit demand, sources of
which depend on government subvention which has been very
irregular in recent times (Okafor, 2000).
However,
Yaron, Benjamin and Piprek (1997) posit that rural communities, like their urban counterparts, have a
bankable demand for formal credit which they say contributes
significantly to their welfare by mitigating the impact of
seasonably and natural disaster on
their income. Puglielli (2002), however, argues that formal finance. is
customarily inaccessible to rural dwellers in a form conducive to efficient productive investment; or, worst
still, credit is unavailable altogether.
He posits that this credit starvation of rural areas is an economic development tragedy.
Therefore, there is
need for a financial institution, different from the formal financial institution, that would operate within the peculiarities of the rural areas. In searching for
alternatives to finance, attention is
increasingly being paid to informal and semi- formal microcredit for meeting rural people's credit demands to offer small loans which are suitable for rural
small businesses. More importantly,
informal micro-credit suits the needs of borrowers .in terms of: their
simplicity in the procedure of obtaining
credit; personal guarantee requirements in place of collateral
which is consistent with the ability of
borrowers; the absence of controls
and restrictions on the use to which loans can be put; the fact that loans can be granted at any time, non-payment of interest and flexibility in terms of payment
and repayment (Mabogunje, 1980;
Chipeta and Mkandawire, 1991;. And Aryeetey, 1998).
Drawing
from the above, this paper addresses the following question:
How significant is the role of the informal microcredit to the economic activities of the rural dwellers in Nigeria?
Conceptual Issues: Rural Areas and Informal Microfinance
Ledgerwood
(1999 cited in Wilson, 2001) defines microfinance as
the provision of financial services that may include credits, savings, insurance and payment services intended
to benefit low-income women and men.
Yaron, et al (1997) see it as community-managed
credit-and-saving associations that are established to improve members' access to financial services. While Okafor (2000) defines microcredit as a
programme designed to provide
financial support and ancillary services to the very poor, Wilson (2001) classifies microfinance into formal,
semi-formal and informal. Formal microfinance is defined as public and private financial institutions that are
most active in micro and small-scale
finance intermediation. These institutions are not subject to central banking regulation and
supervision and they draw their
clientele from their local catchment areas and their minimum capital requirement is significantly lower.
Examples include People's Bank of
Nigeria, Grameen Bank in Indonesia, Budan Kredit Kecamatan [BKK] in Indonesia, etc.
The
World Bank (2004) defines semi-formal finance institutions as those formally registered by banking authorities but
are subject to supervision by government agencies where
government supports them with funds, technical assistance and
policy guidance. Examples of such institutions include credit
unions, group lending institutions, etc. Informal microfinauce, on
the other hand, is defined by Goodland, Onumah and Araadi
(1999) as an institution that comprises a multitude of different
institutions and activities, which together play
significant roles in many Sub-Saharan African economies
with high rate of poverty, and where individuals, households and regions remain isolated from the markets
and from the mechanism for borrowing and lending or
insuring against risk. These institutions are often created by the
people themselves without any external intervention and legal
status. The major types of informal microcredit institutions include
Accumulated Savings and Credit Associations [ASCRAs], Rotating Savings and
Credit Associations [ROSCAs], money lenders, trade credits, self-help groups, personal loans from friends, etc. (World Bank,
1989; Chipeta and Mkandawire, 1991).
Parker
and Nagarajan (2000) say that informal microcredit are characterized by small
loans; reduction in cost of transactions; physical
proximity to clients; regular i'ace-to-face meeting with clients;
prompt loan collection procedure; and the use of peer lending system through which clients cross-guarantee each other's loans, among others. These characteristics make
the informal microcredit institution a
uniquely high-potential, vehicle for reaching
and organizing rural communities (see also Edgcomb and Barton, 1998). Discussing the importance of informal
microcredit, Steel and Aryeetey
(1994) assert that they help in mobilizing
savings in rural areas through their daily collection of deposits, which are used for school fees, medical
expenses and working capital to restock supplies which enable clients earn a stream of profits. Besides, the amount mobilized
is also important because it protects
rural people from incessant appeals from families and friends.
Goodland,
et al. (1999) posit that the savings facilities provided enable households to.
put aside precautionary funds which they use in times of problems such as death
and diseases like HIV/ AIDS, malaria fever, blindness, etc., and
permanent disability (see also Ledgerwood,
Burand and Brown, 2002). The World Bank (1989)
observes that informal microcredit institutions provide savings opportunities for rural savers in countries where community banks are ill-equipped to accept small deposits
of illiterate savers. While Goodland, et al.
(1999) opine that they also play an important role by providing consumption
credits to augment consumption shortfalls; majority of rural people depend largely on agriculture for their livelihood. The
seasonal nature of their resources leads to fluctuating labour and capital demands, and to uneven production and income flows. During
these periods, informal microcredit
provides consumption credits needed to make up for the temporary
shortfalls. Besides, rural households also
use informal microcredits to increase income by investing on non-farm sources as well as saving part of the
credit disbursed for the lean season
(see also Morduch, 1998, Rutherford 1999; and Zaman, 1999).
Dreze
and Sen (1989) also say that informal microcredit plays an important
role in the achievement of livelihood promotion and livelihood protection in rural areas. Livelihood promotion is concerned with improving standards of living
principally through increased income while livelihood protection is essentially
social security which maintains the
living standards and income earned through the informal micro-credit (see also
Zellor, et al. 1997). Quereshi, et
al. (1996) observe that access to informal microcredit in rural Pakistan has enabled farmers purchase
agricultural inputs which have improved their productivity. The World Bank
(1989) also asserts that the
informal microcredits provided for 398 rural households in Niger Republic accounted for 84 per cent of total loans in these rural areas and was equal to 17
per cent of the agricultural income
of the farmers.
Pitt,
Khandker and Cartwright (2003) reiterate that many of the informal microcredits
in Bangladesh specifically target women, based
on their view that women are more likely than men, to be credit-constrained, have restricted access to the wage
labour market, and have an inequitable share of power in household decision-making. The Grameen Bank of Bangladesh is
the best known example of these informal microcredit programmes, and over 90 per cent of its clients are women. Pitt
and Khandker (1998) find that the
flow of consumption expenditure increases by 18 'taka' for every 100 'taka' borrowed by women, but by only 11
'taka' for every 100 'taka' borrowed by men.
Pitt,
et al. (2003), also using a totally different approach to parameter
identification, find that microcredits provide women with significantly improved health and nutrition for both .boys and girls, while credits provided for men have no
significant effect. Bolnick and Mitlin (1980) also report that informal
microcredit institutions provide
members with housing loans. For instance, the Grameen Bank in Bangladesh provided over 330,000 housing loans to its saving scheme members, while the
Self-Employment Women Association
(SEWA) in India also provided housing loans to their members. The Fundacion Carvajah in Latin America also initiated a housing loan programme which
benefited their members substantially (see also Anzorena, 1996, and
Cruz, 1994).
Johnston
(1986) defines a rural area as an area where the inhabitants'
livelihood depends on the exploitation of the soil. Mabogunje (1980) says that it is not only an aggregation of farming population but also the physical manifestation of
both the social relations of land, the ecological, technological and
organizational basis of its
utilization, that depict what a rural area is. For instance, in a rural area, the land holding is small and
owned by family members. The area is
usually built around lineages with a compound
comprising individual huts, or a continuous building of many rooms. Areas around the compound are
manured with domestic refuse or
animal droppings, which are intensively cultivated and cropped every year. Footpaths or tracks of various widths link the farms to the villages and hamlets,
and these, in turn, to the
population market towns. The World Bank (1989) observes that majority of the
population engaged in fanning and other
micro activities such as handicrafts, trading, which the World Bank calls non-corporate business. Rural areas in
Nigeria account for about 54.9 per
cent of the total population of the country (African Development Bank, 2002).
Discussing the importance of rural areas, Afolabi and Osota (1999) assert that
the areas constitute a great reservoir of indigenous technical
knowledge, acquired through centuries of
concrete experience, and their contribution
to national economy include generating resources to feed medium and large-scale enterprises; enhancing the development of the entire nation, laying the
foundation for sustainable
self-reliance, and guaranteeing optimum development of agro-based
industries.
Whynne-Hammond
(1979) also opines that rural areas' role is extremely important as contributors to the
nation's wealth. Their businesses serve as important connecting points
between the various sectors of the economy where flexible
product and service supply play a crucial role in the commercial
network of the country. Economic activities are any kind of work
people engage in for the purpose of making profit: the economic
activities in the rural areas are farming and non-farming activities. Fanning activities are the major occupation of the rural people where
grain crops such as millet, maize,
rice, etc., and root crops such as yams, cocoyams, sweet potatoes, bulbs,
cassava and fruits are grown. Some of
the rural people also engage in animal husbandry such as the rearing of cattle, goals, sheep and poultry.
The non-farming Activities include
bandicrafts, tailoring, petty trading, black and goldsmithery, etc. (Olaloku ct al, 1984).
Efforts
at Microcredit Delivery to the Rural Areas in Nigeria The government, private individuals and community-based
groups have designed some microcredit programmes
that have enhanced rural dwellers' access to credit for
increased productivity and improvement in their
economic status. For instance, at the government
level, between 1986 and 1999, several microcredit programmes were attempted at purveying microcredits to
the rural people. These programmes include the
Agricultural Development Projects (ADPs), the Better Life for Rural
Dwellers (later renamed the Family Support Programme) and
the Directorate of Food, Roads and Rural Infrastmcture (DFRRI).
Other institutions that also purvey microcredits were the Rural Banking Scheme (1977-1980), People's Bank (1987-1990) and
Community Banks (1990-date). In
addition to the above is the Central Bank of Nigeria (CBN) microcredit scheme tagged the Agricultural
Credit Guarantee Scheme (ACGS) which
came into existence in 1977 (Akanji, 2001).
These
institutions have provided microcredit to the rural people to
improve their economic activities. For instance, community banks gave loans and advances worth N14.621
million between 1999 and 2000 to
agriculture, food processing and trading (Aderibigbe, 2001; Okafor, 2000) while the Agricultural Credit Guarantee Scheme (ACGS) guaranteed loans worth
N27, 687,169 million for the
development of agriculture in the country. On the part of the People's Bank,
the bank granted loans and advances worth
N3.490 billion to the rural people. (Phillips, 1991; Okafor, 2000; Aderibigbe, 2001 and Akanji, 2001).
However, these formal microfinance
institutions have suffered from a number of the volume of funds they could supply was limited, arid it was impossible for these lending institutions to meet
the demands of their clients. Okafor (2000) notes that the fundamental
source of this problem is the absence of
autonomous sources of funds for the
institutions. , These institutions, especially those owned by the government, depend largely on government
subvention, which has become very
erratic these days. Besides, most of the credit systems are tailored towards
meeting the needs of the elite rather than
the poor, and this makes it easy for the wealthy household to annex the benefits of the institutions. Also, the
fact that the poor cannot provide
the collateral demanded by banks continues to make microcredit delivery
to rural dwellers elusive (Olashore, 1979; Aderibigbe
2001; and Akanji, 2001). Okafor (2000) also reiterates that community and rural banks are avoiding
credit delivery to productive
activities in rural areas by siphoning local savings for portfolio investment outside the rural areas.
From the foregoing,
therefore, it can be deduced that the formal' financial
institutions have not been able to provide a reliable independent credit
delivery system in the rural areas because, despite the huge amount invested in the formal financial institutions,
it has proved to be irrelevant and cannot meet the economic needs of the areas. Furthermore, there is a breach of mutual trust between the formal financial
institutions and the rural dwellers
because the savings mobilized in these areas are used to support credit
delivery operations to choice customers in urban areas. Therefore, there is need for a financial institution that would operate within the peculiarities of the rural
areas. That financial institution is
the informal finance institution like the informal microcredit, the institutions whose formation must
be based on the concept of social capital that emphasizes mutual trust.
Analytical Framework on the Impact of
Informal Microcredit on the Economic
Activities
of Rural Dwellers in Nigeria
The
analytical frameworks that discuss issues relating to finance are usually based on trust, and these are better
discussed under the social capital theory. For instance, financial intermediation depends upon trust between the borrower and the
lender that contracts will be
honoured (Bennett, 1996a:3). The basis for that trust depends on two
crucial elements: the applicant's reputation as
a person of honour and the availability of collateral against which claims can be made in case of default. The first
two elements -reputation and
character - were assessed based on the lender's intimate knowledge of the borrower, or on the witness of other reliable persons and a documented history of the
borrower's behaviour. But these are
the two elements that are lacking between the formal financial institutions and the rural dwellers. The consequence of these barriers are what the formal
lender perceives would make administrative costs of gathering information
and processing application for the rural
people to be too costly compared to
the small size of the loans and their expected profit. These barriers made the
formal financial institutions to abandon the delivery of microcredit to the rural dwellers. Therefore, something needs to be created to overcome, these
barriers so as to improve the
economic activities of the rural dwellers. That something is a financial institution that is based on social capital (Edgcombe
and Barton, 1998; and Goodland, et al. 2001).
According
to Narayan (1999), Bebbington and Carroll (2001:1), Collier (1998), Gugerty and Kremer (2000), Knack (1999), Krishna and Uphoff (1999) and Woolcook and Narayan (2000:226), social capital is the norms and social
relations embedded in the social structures of the
society that enable people to co-ordinate action collectively in order to
achieve desired goals (sec also Ijaiya, 2002). According to Putnam
(1995:3), social capitals are those features of a social organization such as
networks, norms and trust that facilitate co-ordination and co-operation of
mutual benefits, which enhance the benefits of investment in physical and human
capital (Bennett 1991:1). Funkiyama
(undated) (cited in Edgcomb and Barton, 1998) further defines networks, norms and trust as "local clubs,
temple, associations, work groups and other forms of
association beyond the family and kinship groups', and large,
publicly owned corporations. This made Grotaert (1999:4-10)
to opine that social capital is relevant at macro, mcso and micro levels.
Social capital at the macro level includes large and public
institutions like government, with the rule of law, civil and
political liberties, etc. At meso and micro levels, social capital can take
place at local clubs, work groups, and other forms of association beyond the
family and kinship groups. Therefore, social capital refers to the networks and norms that govern interactions among
individuals, households and
communities. Ostrome (1994) cited in (World Bank ,1999) observes that networks are social capital in the form of rudimentary "insurance companies" or
'banking institutions' for the people
lacking fundamental assets like collateral for loans. Such people, he argues,
may draw on their social capital as a substitute.
Discussing the
importance of social capital, Bennett (1996b:2) says that social capital is
important because both civil and commercial associations which reach beyond the
family depend on - and foster on - traditions of collaboration and a certain
level of trust between members of society. This level of trust allows the
society to reduce what economists call the transaction cost of doing business
in that society.
The World Bank
(1999:91) also opines that access to social capital turns out to be
indispensable to successful “entrepreneurs” in order to improve their living
conditions through their own efforts. The lack of social capital, the absence
of connectedness and relationships with the formal financial institutions, have
been identified as the root problems of the rural people. For these people, the
slightest worsening of their situations, whether as a result of sickness or a deteriorating economy, may plunge them into
crisis from which they may never recover. Therefore, they need a source of finance through which the people
can relate to others in the society
and through which members can develop a substitute for the collateral they
lack. This would enable them have access
to credit that would improve their economic activities. For instance, the guarantee mechanism, a major
characteristic of the informal
microcredit, introduces shared liability and pressure from social groups which serve as a replacement for the
formal finance security and business
appraisals. This guarantee mechanism slashes
administrative cost of the informal lender since they gather information about borrowers. This enables informal
lenders to shift the cost of loan
processing and loan approval tasks to the people. Also, shared liability and the promise of repeat loans in increasing
amount are recognized as key factors in motivating repayments (Ryne and Otero,
1994).
In
effect, a village bank or a savings and credit co-operative creates an
"information asset" for the people. That information asset is first and foremost the collective endorsement-of
character that each member of the
group provides for the other, which is accepted by the financial intermediary in lieu of other assets. Secondly, the knowledge that each member has knowledge of
each other's economic activities (and
household situations) which support an accurate
assessment of ability to pay is another information asset. Ostrom (1994, 1997)
cited in World Bank (1999) also says that social capital prevents the deterioration of common pool resources
or ensures members' contributions to the maintenance of local infrastructure. Thus, a change in economic conditions has to be accompanied by investments in economic
activities that stabilize and prolong the regulator)' function of the existing
social capital. To allow the functioning of the existing social capital, the participation of the people in the whole process
of identifying and managing
community-based projects to the needs of the people is considered essential. It is critical to
ensuring local commitments and
sustainability. Apart from the fact that such social capital would enable
people to build assets, it will also improve
their consumption pattern and general economic activities.
However, even if
societies are rich in social capital, i.e., have a well-functioning mechanism for mutual co-operation, there is still no guarantee that banks or other formal financial
institutions will recognize,
co-operate, or work with groups of marginalized men and women. Edgcomb and
Barton (1998:5) say there is need for transformation within the groups.
This transformation involves using the
groups to expand access to social services (like health, adult literacy, and family planning) and
production of support services like agricultural extension, trade, etc., if
needed. The second step is financial
intermediation, involving training of members
to participate in management, accounting, and basic financial management, which help groups to
establish good record and audit
systems to "keep score." This grouping will enable the rural dwellers
to benefit more from the social services, using the informal microcredit in their reach to improve
their economic activities (see also
Goldberg, 1988).
However,
Bennett (1996b) maintains that successful informal microcredit
efforts (particularly those working through groups) should seek to create sustainable access to financial services for
micro entrepreneurs, create locally controlled systems that will bridge the gap between formal financial
institutions and the people (Berenbach
and Guzman, 1992). These systems should also" include institutions that work together to deliver
and regulate social and financial
intermediation services to the people. In some instances, it could be an institution that consists of one organization that delivers both types of
services., with the clients organized
into some form of groups with varying degrees of autonomy and
control, to regulate social interactions effectively (see also World Bank, 1999). That institution is the
informal financial institution that formed the basis
of our analytical framework of determining its role in the growth of economic activities in rural Nigeria. Figure 1 depicts the
analytical framework to show the
interaction of the rural dwellers with the informal microcredit institutions.
It
is important to note that the success of this framework in achieving
its goals depends on the following assumptions:
(i)
that the informal microcredit will not use
concessional interest rate
(often negative in real terms);
(ii) that the informal microcredit will not favour only
agriculture but all rural economic activities, which include non-farming activities;
(iii) that the informal microcredit will not ignore or oppress
the creation of saving deposits, i.e., will
provide saving with real returns;
(iv) that the informal microcredit will not implement costly
and inefficient service deliver)' mechanism;
(v)
that the informal microcredit will favour
long-term loan that would allow rural dwellers to invest in long-term
productive activities.
The
framework, as depicted by the diagram, shows the link between the informal micro-credit and the economic activities
(measured in terms of the volume realized). Put
differently, the framework shows how the
informal microcredit, through credit facilities, savings
facilities, insurance facilities, leasing facilities, warehouse receipt facilities, housing facilities, combating diseases
like malaria, fever, blindness, HIV/AIDS, etc.,
relief materials, including contingencies and provision of
social services, could improve the economic activities of the rural
dwellers.
The framework also indicates a feedback loop
from the gains through the role of the informal microcredit by rural dwellers to the boost in their economic activities. This
feedback is necessary if the activities of the informal microfinance are
to be sustained. It is assumed that as the rural dwellers income improves, they
would return the amount borrowed and also
save part of their earnings in the
informal microcredit programmes to keep the process moving. This process applies to all categories of individuals that benefit from the programmes as
they would also return the amounts borrowed and also save part of their
earnings to enhance the sustainability of
the programme. This process will allow
others to take loans from the pools, thus boosting the economic activities of
all the rural dwellers. Therefore, the schematic
flow is established and maintained, to make a continuous process of the operation of the microcredit and
improvement in the economic activities
of the rural dwellers possible.
Informal Microfinance Inslutitions (Types)
Associations (ROSCAS) known as "esusu"
* Rotating Savings
and Cred
* Money lenders
* Trade creditors
* Self-help groups
* Friends and
relations
Conclusion
The
insufficient delivery of microcredit to rural areas in Nigeria has
been traced partly to the inability of the formal financial institutions to deliver microcredit because of the
problems enumerated earlier. These
shortcomings from the formal financial institutions
are increasing, as rural areas are involved in agriculture, trading and other small enterprises which
represent about 75 per cent of the
rural economic activities in Nigeria. Therefore, providing an analytical framework that is based on the role of informal microcredit to the rural areas becomes
necessary, as this would improve the
delivery of informal microcredit to the rural areas, which accommodate more than 70 per cent of the total population of Nigeria.
References
Aderibigbe, J. O. (2001).
"The Role of the Financial Sector in Poverty Reduction." Central Bank
of Nigeria. Economic and Financial Review, 39(4):135-158.
Afolabi, J. A. and O. O. Osota (1999). "Overview of
the Implementation of the Family Economic Advancement Programme
(FEAP) and its Implication for the Banking System
andBeneficiaries'BankingHabits in Nigeria."
Nigeria Deposit Insurance Corporation, 9(l&2):33-63.
African Development Bank (2002). Selected Statistics
in African Countries, Abidjan:
ADB.
Akanji, O. O. (2001). "Microfinance as a Strategy for
Poverty Reduction." Central Bank of Nigeria Economic
and Financial Review. 39(4):111-134.
Ansorena, J. (1996). SELAVIPNewsletter (Latin
American and Asian Low Income, Housing Service), April.
Aryeetey E. (1998).' 'Informal Finance for Private
Sector Development in Africa'' African Development
Bank Economic Research Paper No. 41.
Aryeetey, E. (1994). "The Relationship between the
Formal and Informal Sector Financial Market in Ghana." African
Economic Research
Consortium Paper
No. 10. Nairobi, L. Kenya. Bebbinglin and
Carroll, T. F. (2000). "Induced Social Capital and Federation of
the Rural Poor." World Bank Social Capital Initiative Working Paper.
Bennett, L. (1996a). "Social Intermediation:
Building Systems and Skills for Sustainable
Financial Intermediation with the Poor." In Tlic World Bank Sustainable Banking with the Poor Project, Rural Finance Seminar.
Washington, D.C., May 1.
Bennett, L. (1996b). "Microfmance and the Creation
of Social Capital Sustainable Banking with the Poor." ASTHER,
Washington, D.C.: The World Bank, October
9.
Berenbach, S. andD. Guzman, (1992). The Solidarity Group
Experience Worldwide. Washington D.C.: ACCION International.
Bolnick, J. and D. Mitlin (1980). "Finance and
Empowerment: Shack Dwellers." International Conference on
Financing Low Income Communities, South Africa.
Chipeta,
C. and M. L. Mkandawire (1991). The Informal Financial Sector and Macweconomic Adjustment in Malawi. Nairobi: Africa Economic Research Consortium (AERC).
Collier, P. (1998). "Social Capital and
Poverty." World Bank Social Capital Initiative
Working Paper No. 4.
Cruz, L.F. (1994). "Fundacion Carvajal: The
Carvajal Foundation." Environment and Urbanization, Vol. 6, No. 2,
pp!75-182.
Dreze, J. and A. Sen (1989). Hunger Public Action. Oxford:
University Press. Edgcomb, W. and L. Barton (1998). Social
Intermediation andMicrofmance Programmes: A Literature Review. Bethesda, MD: Microcntcrprisc
Best Practices Development Alternatives Inc.
Garuba, G. I. (1998). "Comparative System for
Supporting Agricultural Credit and Rural Finance Delivery in Nigeria
and India. "Lagos, Central Bank
of Nigeria, 12(2).
Goodland, A., G. Onumah, and J. Amadi (1999). Rural
Finance. Policy Series I, U. K: Charham.
Goldberg, M. (1998). Memo on Social Intermediation February
8. Grootaert, C. (1999). "Social Capital,
Household Welfare and Poverty in Indonesia."
Local Level Institutions Working Paper No. 6.
Gugerty,
M.K. and M. Kremer(2001). "Docs Development Assistance Help Build Social
Capital?" World Bank Social Capital Initiative Working Paper No. 10.
Ijaiya,
G T. (2002). "The Role of the Informal Sector in Alleviating Poverty in llorin
Metropolis." Unpublished Ph.D. Dissertation. Department of
Economics, Usman Dan Fodio University, Sokoto.
Johnston,
R.J. (1986), (ed.). The Dictionary of Human Geography. Oxford: Basil
Black\vell Limited.
Knack,
S. (1999). "Social Capital, Grov/th and Poverty: A Survey of Crosscountry
Evidence." World Bank Social Capital Initiative PaperNo. 1.
Krishna,
A. andN. Uphoff, (1999). "Mapping andMeasuring Social Capital: A
Conceptual and Empirical Study of Collective Action for Conserving and
Developing Watersheds on Rajasthan, India." World Bank Social Capital initiative
Working Paper No. 13.
Ledgerwood,
J.; D. Burand, and G. Braun(2002). The Micro Deposit-Taken Institution Bill
2002. Summary of Workshops and Information Exchanged Events. Kampala,
SPEED-USAID.
Mabogu'nje,
A. L. (1980). The Development Process: A Spatial Perspective. London:
Hutchinson Publishing Group.
Morduch,
J. (1998). Does Microfmancc Really Help the Poor: New Evidence from Flagship
Programmes in Bangladesh. Department of Economics and HID, Harvard
University and Hoover Institute, Stanford University.
Narayan,
D. (1999). "Bonds and Bridges Social Capital and Poverty." World
Dank Policy Research Working Paper No. 2161.
Olaloku,
F.A; P.O. Fajana; O. Tomori; and Ukpong, II (1984), (eds.). Structure of the
Nigerian Economy. London and Basingstockc: Macmi1lan Publishers.
Okafor,
F. O. (2000). "Microcredit: An Instrument for Economic Grov/th and
Balanced Development." Journal of flic Chartered Institute of Bankers
of Nigeria. July-December, pp. 38-45.
Olashore,
O. (1979). "Rural Banking Strategies and Policies of Government and the
Central Bank of Nigeria." Bullion.
Parker,
J. and G. Nagarajan, (2000). Can Microfmancc Meet the Poor's Financial Needs
in Times of Natural Disaster? Bethesda, MD: MicrofmanceBest
Practices (MBP) Development Alternative Inc.. Phillips, T. (1991). "The Role of
the Banking System in the Management of the
Economy." Central Bank of Nigeria, 15(2): 8-24.
Pitambcr, S. (2003). "Factors Impeding the Poverty
Reduction Capacity of Macrocrcdit: Some Field Observations from
Malawi and Ethiopia" Abidjan: African
Development Bank, Economic Research Paper? No.
74.
Pitt, M.; S. Khandker and J. Cartwright, (2003).
"Does Microcredit Empower Women? Evidence from Bangladesh."Policy
Research Paper No. 2998. Washington DC: The World Bank.
Pitt, M. and S.R. Khandker, (1998). "The Impact of
Group-Based Credit Reforms on Poor Households in B angladesh:
Does the Gender of the Participant Matter?" Journal of
Political Economy 106, pp 958-996. Puglielli,
D. (2002). "The World Bank and Microfinance: An Elephant Trying to Build a Bird's Nest.
Putnam, D. (1995) "The Prosperous Community: Social
Capital and Public Life." The American Prospect. No.
13, Spring, pp 35-36. Quereshi.S.; I.Nabi and R.Famqee (1996). "Rural Finance for
Growth and Poverty Alleviation." Policy
Research Working Paper No. 7593.Washington
DC: The World Bank
Rutherford, S. (1999). The Poor and Their Money. An
Essay about Financial Services
for the Poor People. University of Manchester: Institute of Development Policy and Management.
Ryne, E. (2001). Commercialization
and Crisis in Bolivian Microfinance. Bethesda, MD: Microfinance Best Practices Development Alternatives Inc.
Ryne, E and M. Otero (1994). The New World of
Microenterprises Finance: Building HeallJiy Financial
Instit;;tionsfor the Poor. West Hartford, C. T: Kumanan Press.
Sagbama, J. E. (1997). "Community Banking: The
Nigerian Experience." Central Bank of
Nigeria (CBN), 21(2):27-45."
Steel, W. and E. Aryeetey (1994). "Informal Savings
Collectors in Ghana: Can They Intermediate?"
IMF/ World Bank Finance and Development,
Vol. 31, No. 1:36.
Vonb Pischke, J. D. (1991). Finance at the Frontier:
Debt Capacity and the Role of Credit in the Private
Economy. Washington DC: The
World Bank.
Whyme-Hammed (1979). Elements of Hitman Geography. London:
George Allen and Unv/in.
Wilson, T. (2001), (ed.) Microfir.ancc. during and
after Armed Conflict:Lessons from Angola, Cambodia, Mozambique and Rwanda Durham: The Springfield Centre for B
usiness in Development Mountjoy Research Centre.
Woolook,
M. andD. Narayan, (2000). "Social Capital: Implication forDevelopment Theory, Research and Policy." World
Bank Research Observer 15(2), pp 225- 250.
World Bank (1989). "Financial Systems and
Development." World
Development Report
1989. New York: Oxford University Press. World
Bank (1999). "Inclusion, Justice and Poverty Reduction." Villa Borsig Workshop Series, Washington DC: The World Bank. World Bank
(2004). Micro and Rural Finance in Ghana: Evolving Industry and Approach to Regulation Findings Washington DC: The World Bank.
Yaron, J., (1994). Successful Rural Finance
Institutions: Finance and Development. Washington
DC: IMF/The World Bank.
Yaron, J.; M. P. Benjamin and G. L. Piprek (1997). Rural
Finance: Issue, Design and Best Practice Washington DC: The World Bank. Zaman,'H. (1999). "Assessing the Impact of
Microcredit on Poverty and Vulnerability in
Bangladesh." World Bank Policy Research Working Paper No 2145, July.
Zellor, M.; G. Schneder; J.Von Braun and F. Heldhues
(1997). Rural Finance for Food Security for the Poor:
Implications for Research and Policy Review 4, Washington DC: International
Food Policy Research Institute.
Informal Micro Credit and Economic Activities in
Rural Nigeria: A Framework for Policy Analysis. In Democracy and Development in Nigeria, Saliu, H.A. et al. (eds.) 2:
172-191, (A Publication of Faculty of Business and Social Sciences, University
of Ilorin, Ilorin).