A Note on Banking Reform and Poverty: Revisiting the Indian Social Banking Experiment

6 Pages Posted: 24 Jul 2011

See all articles by Brenda Platschorre

Brenda Platschorre

affiliation not provided to SSRN

Erwin H. Bulte

Tilburg University - Department of Economics; Wageningen University

Date Written: August 2011

Abstract

Recent empirical work demonstrates that state‐led bank expansion in rural India has contributed to a reduction in the number of poor people. In this note it is shown that the social banking policies have not simultaneously decreased the rural poverty gap. This suggests a potential trade‐off for policy makers, hinted at by earlier theoretical modeling: while opening new bank branches in “unbanked locations” might lift some people out of poverty, it may increase the depth of poverty of others. The result also illustrates the value added of combining complementary poverty measures to achieve a more complete picture of the impact of policies on livelihoods.

Suggested Citation

Platschorre, Brenda and Bulte, Erwin H., A Note on Banking Reform and Poverty: Revisiting the Indian Social Banking Experiment (August 2011). Review of Development Economics, Vol. 15, Issue 3, pp. 535-540, 2011, Available at SSRN: https://ssrn.com/abstract=1892607 or http://dx.doi.org/10.1111/j.1467-9361.2011.00625.x

Brenda Platschorre

affiliation not provided to SSRN

Erwin H. Bulte (Contact Author)

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 9111 (Phone)

Wageningen University

Hollandseweg 1
6706 KN
Wageningen
Netherlands

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
439
PlumX Metrics