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OPPORTUNITIES IN AN URBANIZING WORLD

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First, there are a number of challenges for the first step of the credit creation, the decision of the lower tier of the financial system to extend credit to some enterprise which wants to conduct some investment project. The first problem is that a number of entrepreneurs and firms which in principle could conduct some profitable investment project have no or very constrained access to formal credit. There are a number of reasons for this phenomenon. First, in developing countries, the informal sector usually is of a larger relative size than in developed countries. Firms in the informal sector often...
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OPPORTUNITIES IN AN URBANIZING WORLD

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