Rural finance in developing countries

The establishment of formal agricultural credit systems in most developing countries in recent decades has been motivated by the belief that widespread shortages of short- and long-term finance have arrested agricultural growth and development. The lack of affordable formal credit has been blamed for delaying, if not preventing, the timely adoption of new production technology and intensive nonlabor inputs. Commercial lending institutions generally focus on large-scale farmers and ignore small-scale farmers because of the significant cost of processing and servicing unsecured small loans and the prevalent belief that small entrepreneurs represent a greater risk than large ones. The shortage of strong formal credit markets has caused informal credit institutions to flourish in many developing countries. These informal institutions disburse funds rapidly, and the transaction costs for borrowers are low. Many specialized agricultural credit institutions have suffered from design deficiencies. They often were not expected to function as true financial intermediaries that mobilize deposits to make loans. Arrangements such as lending groups and credit cooperatives could reduce both transaction costs and the risks involved in lending to small farmers. For a rural financial institution to become viable, state or donor support should focus on institution-building and development.Environmental Economics&Policies,Strategic Debt Management,Banks&Banking Reform,Economic Theory&Research,Financial Intermediation

Inflation adjustments of financial statements : application of international accounting standard 29 : financial reporting in hyperinflationary economies

The Bank's draft Operational Directive on Financial Sector Operations requires the adjustment of financial statements in countries where the cumulative inflation rate over three years approaches or exceeds 100 percent. Financial statements in those countries are to follow the accounting principles in International Accounting Standard 29 (IAS 29) of the International Accounting Standards Committee. IAS 29 provides a list of principles and requirements but does not outline the procedures for measuring income. Nor does it provide a numerical example. This paper provides a framework for applying IAS 29 to adjust financial statements accompanied by numerical examples and thus may be considered an extension of the standard.Economic Theory&Research,Banks&Banking Reform,Environmental Economics&Policies,International Terrorism&Counterterrorism,Insurance Law

The credit risk-contingency system of an Asian development bank

This article offers a new method for the evaluation of financial institutions, one that combines socioeconomic survey data with appropriate accounting standards. A government-operated development bank in Thailand is found to be offering a risk-contingency or insurance system while being regulated as a more standard, loan-generating bank. Farmer clients experiencing adverse shocks receive indemnities that improve their well-being. With proper provisioning and accounts, that welfare gain could be weighed against premia or government subsidies.Financial crises - Asia ; Financial institutions - Thailand ; Thailand

The Subsidy Dependence Index and Recent Attempts to Adjust It

The Subsidy Dependence Index (SDI) is the most common way to measure the importance of public support for Development Finance Institutions (DFIs). We present the SDI and show its equivalence to a subsidy-adjusted measure of return on equity. We then review recent attempts to adjust the SDI. As a whole, the recent measures are either meaningless or answer unimportant questions. Their use does not lead to a better understanding of the social cost of a DFI

Measuring the performance and achievement of social objectives of development finance institutions

This paper develops and tests a proposed methodology that puts forward a new integrated method for evaluating the performance of development finance institutions. This methodology applies assessment criteria that take into account both the social objective that the development finance institution addresses and the subsidies it received in order to achieve such an objective. This methodology is applied to two pilot case studies-Banadesa (Honduras) and Banrural (Guatemala). The authors calculate the previously tested subsidy dependence index, which measures the degree of an institution's subsidy dependence. The paper develops and estimates a new measure-the output index- which indicates the level to which the institution fulfills the social objectives of the state. The analysis integrates the subsidy dependence index and the output index to assess the effectiveness associated with meeting the social objective. The findings suggest that the integration of the two indexes can constitute the basis of a meaningful evaluation framework for the performance of development finance institutions. This new methodology can also be a useful metric for policy makers who are seeking to decide on an optimal allocation of scarce funds for development finance institutions that pursue social goals and for management that seeks improved performance outcomes.,Access to Finance,Debt Markets,Banks&Banking Reform,Economic Theory&Research

Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter?

Using a two-stage DEA bootstrapped metafrontier approach, we investigate the effects of age and size on efficiency estimates of microfinance institutions (MFIs). In the first-stage, we use a metafrontier model combining with DEA bootstrapped procedure to obtain statistically robust and comparable efficiencies. In the second-stage, we employ a bootstrapped truncated regression to account for the impact of exogenous factors on both dimensions of efficiency. Results highlight the importance of model specification for MFIs operating in different geographical regions. Moreover, we find that although older MFIs perform better than younger ones in terms of achieving financial results, they are relatively inefficient in achieving outreach objectives. We also document that MFI size matters: larger MFIs tend to have higher financial and outreach efficiency

Dyspepsia Symptoms and Helicobacter pylori Infection, Nakuru, Kenya

The prevalence of Helicobacter pylori infection was studied in 138 patients with dyspepsia in a hospital in Nakuru, Kenya, and in 138 asymptomatic sex- and age-matched controls from the same population. Anti–H. pylori immunoglobulin (Ig) G was more prevalent in dyspeptic than asymptomatic persons (71% vs. 51%), particularly those <30 years old (71% vs. 38%). H. pylori seropositivity was associated with dyspepsia after adjusting for age, sex, and residence (urban or rural). Among adults, the association between H. pylori infection and dyspepsia remained after adjusting for the above factors and for educational attainment, family size, and manual occupation. H. pylori infection in asymptomatic residents of Nakuru, Kenya, was more prevalent in older persons, with a rate of 68%, than in those 31–40 years of age. However, young persons with dyspepsia had an unexpectedly high prevalence of H. pylori infection. H. pylori test-and-treat strategy should be considered in Kenyan patients with dyspepsia, particularly in persons <30 years of age

(1,q=−1)(1,q=-1) Model as a Topological Description of 2d2d String Theory

We study the $(1,q=-1)$ model coupled to topological gravity as a candidate to describing $2d$ string theory at the self-dual radius. We define the model by analytical continuation of $q>1$ topological recursion relations to $q=-1$. We show that at genus zero the $q=-1$ recursion relations yield the $W_{1+\infty}$ Ward identities for tachyon correlators on the sphere. A scheme for computing correlation functions of $q=-1$ gravitational descendants is proposed and applied for the computation of several correlators. It is suggested that the latter correspond to correlators of discrete states of the $c=1$ string. In a similar manner to the $q>1$ models, we show that there exist topological recursion relations for the correlators in the $q=-1$ theory that consist of only one and two splittings of the Riemann surface. Using a postulated regularized contact, we prove that the genus one $q=-1$ recursion relations for tachyon correlators coincide with the $W_{1+\infty}$ Ward identities on the torus. We argue that the structure of these recursion relations coincides with that of the $W_{1+\infty}$ Ward identities for any genus.Comment: 39 pages,latex,taup-2170 -9

Intrahepatic cholestasis of pregnancy — prevalence and ethnic distribution in northern Israel

Objectives: Intrahepatic cholestasis of pregnancy (ICP) is charachterized by pruritis and elevated serum bile acids (BA) and is associated with adverse obstetrical outcomes. ICP etiology is poorly understood and its incidence varies with ethnicity and geographical distribution. Objectives: Explore the prevalence and characteristics of ICP in the different Northern Israeli ethnic groups and compare maternal and perinatal outcomes according to disease severity. Material and methods: Single-center retrospective study. Women who were diagnosed with ICP based on clinical presentation and elevated fasting BA (≥ 10 μmol/L) were included. Disease incidence, maternal and neonatal complications were explored according to ethnic subgroups analysis and obstetrical complications were examined according to disease severity. Results: The incidence of ICP in the study population was 0.58%. Higher ICP incidence was found in our cohort compared with other reports arising from Central Israel (p &lt; 0.001). The Christian patients had a higher incidence of ICP (1.1%) and preeclampsia (23.1%). A higher rate of neonatal intensive care unit (NICU) admissions was found in the Arab Muslim and Christian groups compared with the Jewish and Druze groups (p = 0.007). A higher rate of preeclampsia was found in the severe (BA ≥ 40 μmol/L) ICP group (p &lt; 0.001). Patients in the severe ICP group had earlier gestational age at delivery (37 versus 38.14 weeks, p &lt; 0.001). Birth weight was significantly lower in the severe ICP group (p = 0.018). Conclusions: The incidence of ICP at our institution was 0.58%, which is higher compared with previous reported Israeli incidence. Higher ICP and preeclampsia incidence were found among Arab Christian patients

PTF10fqs: A Luminous Red Nova in the Spiral Galaxy Messier 99

The Palomar Transient Factory (PTF) is systematically charting the optical transient and variable sky. A primary science driver of PTF is building a complete inventory of transients in the local Universe (distance less than 200 Mpc). Here, we report the discovery of PTF10fqs, a transient in the luminosity "gap" between novae and supernovae. Located on a spiral arm of Messier 99, PTF 10fqs has a peak luminosity of Mr = -12.3, red color (g-r = 1.0) and is slowly evolving (decayed by 1 mag in 68 days). It has a spectrum dominated by intermediate-width H (930 km/s) and narrow calcium emission lines. The explosion signature (the light curve and spectra) is overall similar to thatof M85OT2006-1, SN2008S, and NGC300OT. The origin of these events is shrouded in mystery and controversy (and in some cases, in dust). PTF10fqs shows some evidence of a broad feature (around 8600A) that may suggest very large velocities (10,000 km/s) in this explosion. Ongoing surveys can be expected to find a few such events per year. Sensitive spectroscopy, infrared monitoring and statistics (e.g. disk versus bulge) will eventually make it possible for astronomers to unravel the nature of these mysterious explosions.Comment: 12 pages, 12 figures, Replaced with published versio