Transaction Cost and Asymmetry of Information -The Twin Odds of Indian Commercial Banks in Rural Credit Market: Theoretical Fragility

This paper delves into the issues of transaction cost and asymmetry of information in the rural credit market. The first two sections deal with theoretical postulation of bank intermediation. The third section discusses the policy and administrative interventions in the rural credit market in India. The fourth section discusses the problem of asymmetry of information and high transaction cost the faced by the commercial banks in the rural credit market in India. The fifth section analyses the interrelation between the role of trust and transaction cost and examines the role of SHGs in bridging information asymmetry, fostering trust between bankers and the rural borrowers and thereby reduce the transaction cost.Transaction cost, information asymmetry

Towards Sub-regional cooperation: India’s Northeast and Bangladesh

The South Asian countries have a shared past based on deep-rooted common cultural heritage and historical legacy. The region has demographic and geographical advantages young labour force and a contiguous border. The spatial dimension of regional integration of Northeast India and Bangladesh can be inferred from the historical fact that economic growth of Northeast during the British rule flourished essentially on the strength of its integrated transport network through East Bengal. Inland-water trade between India and Bangladesh is important in linking not only Assam but the region as a whole to Bangladesh. Cost effective trade routes through water ways is more important than land routes for India’s Northeast through the corridors of Bangladesh. Notwithstanding the importance of waterways, the land routes continue to be the safe transit for informal trade between both the countries.Regional cooperation; Northeast India

Bane of rural credit market: presence of money lender or absence of structural synchronicity

Working out ways to lift people out of poverty is a key objective within development economics. One policy area that has attracted a lot of theoretical attention is credit, access to which is often seen as critical in enabling people to transform their production and employment activities and to exit poverty. Of the total households in rural India, approximately 41 percent of the households are without any cultivable land. Along with growing landlessness there has been an increase in no occupation among the rural households. Since indebtedness is directly related to the expenditure level of the rural households, the growing landlessness and no occupation among rural households has led to overall decrease in rural indebtedness in 1999-2000. The money lenders have again emerged as the major sources of rural debt compared to the period during 1983-1993 when banks had a major share of debt for the rural households. The real issue before rural credit market is not the presence or absence of money lenders but the synchronicity between rural capital structure and the productive activities in these areas which has been the missing link.Rural credit; moneylenders

Towards Sub-regional cooperation: India’s Northeast and Bangladesh

The South Asian countries have a shared past based on deep-rooted common cultural heritage and historical legacy. The region has demographic and geographical advantages young labour force and a contiguous border. The spatial dimension of regional integration of Northeast India and Bangladesh can be inferred from the historical fact that economic growth of Northeast during the British rule flourished essentially on the strength of its integrated transport network through East Bengal. Inland-water trade between India and Bangladesh is important in linking not only Assam but the region as a whole to Bangladesh. Cost effective trade routes through water ways is more important than land routes for India’s Northeast through the corridors of Bangladesh. Notwithstanding the importance of waterways, the land routes continue to be the safe transit for informal trade between both the countries

Information asymmetry and institutions: re-looking at autonomous councils in the hills district of Assam

Abstract The transaction cost approach can be used as a tool for studying the political institutions which engage in sharing of power and responsibilities. This paper makes an attempt to present an analytical framework of governance structure in the Autonomous Councils in the two hills districts of Karbi Anglong and N.C. Hills in the State of Assam. The first section of the paper gives a brief introduction to the theoretical framework of the transaction cost and information asymmetry and moral hazard problem. In the next section, these concepts are examined in the context of the autonomous councils in the hills district

Bane of rural credit market: presence of money lender or absence of structural synchronicity

Working out ways to lift people out of poverty is a key objective within development economics. One policy area that has attracted a lot of theoretical attention is credit, access to which is often seen as critical in enabling people to transform their production and employment activities and to exit poverty. Of the total households in rural India, approximately 41 percent of the households are without any cultivable land. Along with growing landlessness there has been an increase in no occupation among the rural households. Since indebtedness is directly related to the expenditure level of the rural households, the growing landlessness and no occupation among rural households has led to overall decrease in rural indebtedness in 1999-2000. The money lenders have again emerged as the major sources of rural debt compared to the period during 1983-1993 when banks had a major share of debt for the rural households. The real issue before rural credit market is not the presence or absence of money lenders but the synchronicity between rural capital structure and the productive activities in these areas which has been the missing link

Transaction Cost and Asymmetry of Information -The Twin Odds of Indian Commercial Banks in Rural Credit Market: Theoretical Fragility

This paper delves into the issues of transaction cost and asymmetry of information in the rural credit market. The first two sections deal with theoretical postulation of bank intermediation. The third section discusses the policy and administrative interventions in the rural credit market in India. The fourth section discusses the problem of asymmetry of information and high transaction cost the faced by the commercial banks in the rural credit market in India. The fifth section analyses the interrelation between the role of trust and transaction cost and examines the role of SHGs in bridging information asymmetry, fostering trust between bankers and the rural borrowers and thereby reduce the transaction cost

Transaction Cost and Asymmetry of Information -The Twin Odds of Indian Commercial Banks in Rural Credit Market: Theoretical Fragility

This paper delves into the issues of transaction cost and asymmetry of information in the rural credit market. The first two sections deal with theoretical postulation of bank intermediation. The third section discusses the policy and administrative interventions in the rural credit market in India. The fourth section discusses the problem of asymmetry of information and high transaction cost the faced by the commercial banks in the rural credit market in India. The fifth section analyses the interrelation between the role of trust and transaction cost and examines the role of SHGs in bridging information asymmetry, fostering trust between bankers and the rural borrowers and thereby reduce the transaction cost

RE looking at forest policies in Assam: facilitating reserved forests as de facto open access

Forest is a common pool resource and share common attributes with many other resource systems which make it difficult to govern. Since forest is an open storehouse of resources, it has been subject to pressures such as encroachment, illegal felling of trees and smuggling of timber, grazing etc. Although different explanations have been put forward for degradation of forests, the nub of the present focus is that degradation of forest is mainly a property right problem. Most conflicts in forests arise due to the difficulties in clarifying the property right because different bundles of property rights, whether they are de facto or de jure, affect the incentives individuals face, the types of actions they take, and the outcomes they can achieve. The present paper, elucidates the issue of deforestation and degradation in reserved forests of Assam in the light of forest policies that have evolved in the State and how these policies have embedded scope for reserved forests to become de-facto open access