Finance is the key to investment and hence to the process of growth. Providing saved resources to others with more productive uses for them, raises the income of saver and borrower alike. Without an efficient financial system lending can be both costly and equally risky. Trade, specialisation of production, profesionalisation, savings, efficient use of resources and risk-taking which are cornerstones of a growing economy are duly stimulated and streamline with a well structured networking of financial institutions. In fact development of any economy demands a responsive financial system free from undue temptation for acting merely as "Profit Centre". It has to act as constructive agent for development. It has to act as partner of development. It has to act as resource mobiliser. It is, therefore, one of the basic economic infrastructures.
The first concern in any developing economy is lack of efficient mechanism of mediation between highly organised financial institutions and highly unorganised private savers whose savings constitute the foundation of the financial market. We have to monitor and review this linkage from time to time. The constraints and loopholes have to be dully addressed and plugged promptly.
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