What makesr uralc reditm arketsi n developingc ountriesd ifferentf romo ther
credit markets?T he three principalf eaturesd istinguishedh ere-collateral
security, underdevelopmenitn complementaryi nstitutions, and covariant
risks-characterizea ll creditm arketst o some extent. The distinctioni s in degree
rather than in kind; these problems are felt much more acutely in rural
credit markets, and in developing countries, than in other contexts in which
credit marketso perate.T hat is why those governmentsh ave regardedp olicy
initiatives in this area as important.