David Hulme is Professor of Development Studies and Director of the Institute for Development Policy and Management at the University of Manchester. Paul Mosley is Professor of Economics and Director of the International Development Centre at Reading University.

• Preface 1 WHY DEVELOPMENT FINANCE INSTITUTIONS EXIST Market failure versus government failure 2 WHY CREDIT MARKETS FAIL THE POOR 3 FINANCIAL PERFORMANCE AND SUSTAINABILITY The role of ‘innovative credit institutions’ in the capital market 4 THE IMPACT ON PRODUCTION AND TECHNOLOGY 5 FINANCE FOR THE POOR Impacts on poverty, vulnerability and deprivation 6 THE POLITICS OF FINANCIAL INTERMEDIATION FOR THE POOR 7 THE MANAGEMENT OF FINANCIAL INSTITUTIONS FOR THE POOR 8 GROWTH VERSUS EQUITY? 9 CONCLUSIONS

David Hulme is Professor of Development Studies and Director of the Institute for Development Policy and Management at the University of Manchester. Paul Mosley is Professor of Economics and Director of the International Development Centre at Reading University.

• Preface 1 WHY DEVELOPMENT FINANCE INSTITUTIONS EXIST Market failure versus government failure 2 WHY CREDIT MARKETS FAIL THE POOR 3 FINANCIAL PERFORMANCE AND SUSTAINABILITY The role of ‘innovative credit institutions’ in the capital market 4 THE IMPACT ON PRODUCTION AND TECHNOLOGY 5 FINANCE FOR THE POOR Impacts on poverty, vulnerability and deprivation 6 THE POLITICS OF FINANCIAL INTERMEDIATION FOR THE POOR 7 THE MANAGEMENT OF FINANCIAL INSTITUTIONS FOR THE POOR 8 GROWTH VERSUS EQUITY? 9 CONCLUSIONS