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The World Bank ' s policies as embedded in Operational Directive 8.30 have shifted from the fund transfer objectives in traditional agricultural credit projects to those of building viable financial institutions which operate within the purview of the rural financial market. However, this has p...
The World Bank ' s policies as embedded in Operational Directive 8.30 have shifted from the fund transfer objectives in traditional agricultural credit projects to those of building viable financial institutions which operate within the purview of the rural financial market. However, this has presented a significant challenge and has had a negative impact on the volume of agricultual credit lending. The study was inspired by the need to learn how to design and implement realistic rural finance projects consistent with these policies. This study analyzes all of the World Bank ' s on-going rural finance projects to arrive at best practices in project design, particularly with reference to the provisions of Operational Directive 8.30. Design features of on-going rural finance projects were compared to pinpoint best practices. In addition, design issues were identified and conclusions reached on these issues. On the basis of these conclusions, guidelines have been proposed to assist Bank staff designing sound rural finance projects.
