China looks set to see a boom in access to finance since the passage in 2007 of the Property Rights Law. Last week, the Financial Times reported on the newfound ability of farmers to monetise their land. Some farmers are selling to larger, more efficient companies, while others are taking advantage of the opportunity to use their land as collateral:
access to finance
For those who are excited by new datasets (come on, I know you're out there...), these last few weeks have been a bonanza. One month ago, the World Bank Group released the Financial Infrastructure report, which provides cross-country measurements of core financial institutions such as credit bureaus and payment systems.
Editor’s Note: Murat Seker and Federica Saliola work in the World Bank's Financial and Private Sector Development Vice Presidency. This blog is a summary of the Country Note prepared for the World Bank's Enterprise Survey. The note for Turkey and several other ECA region countries can be seen at www.enterprisesurveys.org
Last week saw an all-day event at the World Bank on Mobile Innovations for Social and Economic Transformation. The sessions covered the use of mobile phones in everything from governance to education.
Microfinance has been getting its fair share of attention lately.
A recent article by Timothy Ogden (Computer Error?) provides a pretty clear answer: forget the glitzy computers, and put your scarce resources into the provision of deworming pills. The One Laptop per Child (OLPC) program provides computers at around $200 a pop, while deworming pills cost between 50 cents and 4 dollars per student per year. All the control trials of computers in classrooms have given—at best—ambiguous results.
Might access to credit have anything to do with support for employment protection legislation (EPL)? Felipe Balmaceda and Ronald Fischer propose a connection. Workers in firms with easy access to credit EPL. Workers in firms with shaky access to credit oppose EPL.
Microfinance received a nice fillip recently when Muhammad Yunus was awarded the Presidential Medal of Freedom by U.S. President Barack Obama. While Yunus's rockstar status has helped put the access to finance agenda center stage, I wonder if it might obscure some of the hard work that goes on behind the scenes. Perhaps the phrase "credit bureaus" may not cause your heart to race, but in some countries this is really where the action is at.