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Interest in access to finance and awareness of its importance have
increased significantly since the early 2000s. Growing evidence
suggests that lack of access to credit prevents many households and
firms from financing high-return investment projects, which has an
adverse effect on growth and poverty alleviation. Despite the
increasing awareness of the importance of access to finance among
both researchers and policymakers, there are still some major gaps
in our understanding of the main drivers of access, as well as
about the impact of different policies in this area. This book aims
to fill some of these gaps by discussing recent innovative
experiences in broadening access to credit in Latin America. These
experiences are consistent with an emerging new view that, while
recognizing the central role of the public sector in improving the
contractual and informational environment for financial markets,
contends that there might be room for well-designed, restricted
interventions in collaboration with the private sector to foster
the development of financial markets and broaden access to them.
The book analyzes some interesting experiences from Brazil, Chile,
Colombia, and Mexico, most of which have led to financial
innovation by developing new financial products and coordinating
different players in the financial and real sectors to overcome
barriers to access to credit. The book provides an analytical
framework to understand problems of access to finance and a
discussion of the effects and optimal design of public
interventions. It also discusses some open policy questions about
the role of the private and public sectors in broadening access to
finance in a sustainable and market-friendly manner.
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