How well do credit markets function in developing countries Discuss Essay

How well do credit markets function in developing countries Discuss with reference to relevant theory and evidence - Essay Example This persistency has not been justified by the lender’s hypothesis. The term used is the widespread rationing which refers to the fact that the investors and the creditors are not loaned in the ratios in which the loans are required. The formal credit has a link with the person’s wealth. The formal as well as the informal providers of the credit are inclusive of the local money lenders, landlords, the shopkeepers, relatives as well as the friends (Karlan 4). In the case of the informal credit markets, the borrowers have access to only a small number of credit markets as well as the finance institutions and money lenders. There are many arguments given, including the collateral being offered for the aim of securing the loans and it may be considered to be of higher values for the money lenders. Thereby, the lenders may be attempting to make the loans with the aim of acquisition of the assets that are often given as collateral (Townsend 67). These goals are achieved by setting the interest rates higher, thus leaving the borrower with lesser options but to be the defaulter. These reasons mark the inequalities in the land rates as well as the bonded labour as this has been especially noticed in the poorer countries and these regions have been known for uncertainties (Morduch 180). Microfinance, specially the ones used in the loans to be given out to the micro creditors, has been considered as collateral as well as costly and labour intensive. If the banks start to take interests on the microfinance, that is able to generate to the profits. The main need of the banks shall be the greater number of the micro creditors (Ray 23). The credit shall be given to these micro creditors according to the finances that are needed by them. The interest rates in the developed countries are higher as compared to the countries that are less rich. On an average, the banks have 900,000 clients for the micro credits

Mr Ulysses S. Grant ,Mr Robert E. Lee Essay Example | Topics and Well Written Essays - 500 words

Mr Ulysses S. Grant ,Mr Robert E. Lee - Essay Example This document will compare and contrast the two personalities in light of their roles during the Civil War. Ulysses S. Grant was one of the personalities that played a critical role during the Civil war. Bonekemper (233) notes that although people did not know him at the beginning of the war, he was later to emerge as a leading and important commander of the Union forces at the last stages of the war. In fact, Grant was not a soldier at the beginning of the Civil War. His attempt to join the army in 1861 was met with strong resistance from some quarters before being allowed to join the army. He was later to join the Union forces where Grant was elevated to become the Union Commanding General at the last stages of the war. As the commanding general for the Union forces, Grant used military tactics and strategies that helped the Union forces triumph over the confederate forces at the south. By contrast, Lee was a prominent soldier right from the beginning of the Civil War (Bonekemper 233). Unlike Grant, who became a soldier when the war had begun, Lee was the confederate Commanding General right from the beginning of the war, a position, which he held until the end of the Civil War. Secondly, Grant was a very ruthless commander who showed no compassion and mercy to either the confederate soldiers or the civilians. For instance, upon taking command in the last stages of the Civil War, the first thing he did was to order General William Tecumseh Sherman to harass the civilians who were defenseless. Sherman went ahead to implement the direction by ruthlessly taking whatever they wanted from civilians without paying for them. This resulted in the looting of the properties of the local residences even as crops were destroyed, houses torched, and livestock killed (Bonekemper 232). Grants inhumane style of leadership also came to the limelight after ordering a stoppage to the exchange of prisoners of war. Before Grant took command, there was a system in