Premium
Credit management for rural development: Albania, a special case
Author(s) -
Nela Naim,
Marshall David
Publication year - 1999
Publication title -
public administration and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.574
H-Index - 44
eISSN - 1099-162X
pISSN - 0271-2075
DOI - 10.1002/(sici)1099-162x(199905)19:2<165::aid-pad69>3.0.co;2-q
Subject(s) - government (linguistics) , poverty , communism , order (exchange) , economic growth , politics , economics , rural area , constraint (computer aided design) , business , rural development , agriculture , finance , economic policy , political science , engineering , mechanical engineering , philosophy , linguistics , law , ecology , biology
Lack of rural credit in north‐eastern Albania is one of the most important challenges facing the peasants in the area. In order to overcome the ineffective credit infrastructure prevailing after the break‐up of the communist system in 1991, the Government of Albania, with the support of the World Bank, designed a project for the alleviation of this area's rural poverty. The project, which started in 1995, is co‐financed by the International Fund for Agricultural Development, the Islamic Bank for Development and the Government of Albania. One of the project components is small scale credit for rural farmers. In the light of the experiences of the above project, this article reflects upon the future of rural credit in Albania by developing a theoretical framework which identifies the characteristics and principles to be addressed when attempting to rehabilitate the system. The framework examines the desirable preconditions, the strategic considerations, the optimum credit delivery systems and operational requirements to address the current constraints. The conjectural framework developed around some assumptions which, as the political situation was still uncertain at the time of writing, were not tested in the field. The conclusion of the study reflects the need to test these assumptions and to discuss the feasibility of using the policy framework with those empowered to implement the strategies. Copyright © 1999 John Wiley & Sons, Ltd.