For decades, governments and donors have attempted to improve social welfare through public support for development finance institutions (DFIs). This monograph presents two measures of social cost. The first measure is the Subsidiary Dependence Index (SDI) and the second is the Net Present Cost to Society (NPCs). These measures help to establish benchmarks and to chart trends. They help to measure the social cost of development finance institutions (DFIs) that receive public funds. This is significant since funds earmarked for development are scarce. The measurement of social cost in this...

Affordable financial services to the rural population have been a prime component of development strategy for the past several decades. This paper outlines the traditional approach to rural finance, which relied heavily on supply-led, state-owned, agricultural credit institutions. It then illustrates an emerging new approach that focuses on promoting rural financial markets within the context of rural development and presents criteria for assessing rural finance institutions. The paper reviews and analyzes the performance of three successful rural institutions: the Bank for Agriculture and...