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This paper first examines the characteristics of rural financial services, including demand and supply factors in rural financial markets. It draws attention to past failures of centralized and directed rural credit services, and the emergence of a new broader vision of rural financial services, based on liberal economics and decentralization policies. The conceptual framework for reform of rural financial services is discussed, and important principles of decentralization reiterated. Policy implications, in terms of options for decentralization, and the roles and responsibilities of the government are next examined. Various options which might be considered under deconcentration, devolution, and diversification of ownership of [...]