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Government Failures and NGO Successes: Credit, Banking and the Poor in Rural Bangladesh, 1970–90

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Part of the book series: Case-Studies in Economic Development ((CASIED))

Abstract

At the beginning of the 1990s the banking system in Bangladesh was described as ‘in distress’ (Watanagase 1990). High levels of overdue payments and defaults, especially on rural credit, had undermined the loan portfolio of most of the country’s major banks to the extent that they were completely dependent upon government refinancing and on government guarantees of their viability. Given the importance placed upon the role of the banking system, or financial markets, in the development process by a diverse range of theorists, this bodes ill for the development prospects of the country as we move towards the end of the century.

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© 1994 Tim Lloyd and Oliver Morrissey

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McGregor, J.A. (1994). Government Failures and NGO Successes: Credit, Banking and the Poor in Rural Bangladesh, 1970–90. In: Lloyd, T., Morrissey, O. (eds) Poverty, Inequality and Rural Development. Case-Studies in Economic Development. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23446-2_6

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