Risk Management: Information Technology

Directed credit programs are common phenomenon in most developing countries. They continue to be implemented despite their inefficiencies and their ineffectiveness in reaching the target beneficiaries. Like any other developing countries, the Philippines has for many years been implementing subsidized rural directed credit programs to provide the rural poor access to credit. It was only recently that it has moved away from the implementation of subsidized credit to the adoption and implementation of market based credit policies to provide access to credit. Considering the expediency of direct credit provision, the adoption of market-based credit policy reforms in the rural sector has always been an impossible task. Policymakers who are only in power for a short period of time always prefer to implement subsidized directed credit programs as a form of assistance to the rural poor. This paper tells the story of how the Philippines was able to pursue and implement market-based credit policies and rationalize the implementation of subsidized directed credit programs, using the assistance of the Credit Policy Improvement Project (CPIP), a donor-funded technical assistance project. Section I gives a brief description of the Philippines policy environment prior to the reforms. Section II and III describes the CPIP, its components, how it was implemented and the key results of project implementation. Section IV gives a brief account of the challenges faced by the project and the policy reforms that are currently being implemented while the last section presents lessons learned from the project that are useful for the donor community.

  • Resource type
  • Author Ma. Piedad S. Geron
  • Organisation
  • Year of Publication2002
  • Region
  • LanguageEnglish
  • Number of pages13 pp.

Related Resources