Saturday, November 20, 2010

Malawian Goverment to implement Rural Housing Credit Scheme

This is interesting.

I am generally quite leery of credit. I don't use it often myself and the financial crises that have rocked the world economy over the past couple years prove that if it is badly managed very bad things can happen.
However it is also certainly the engine of all modern economies. Provided that it is extended to people responsibly I don't see why the rural poor should be categorically denied it.
With this kind of scheme the devil really is in the details and implementation however.
I'm a fan of De Soto and his calls for developing countries to focus on property rights issues but most African nations seem to have real trouble moving forward in this regard. There is a good academic paper floating around that tries to explain why this is, I'll try to dig it up for another post.