The jobs of rural development in the Third World and in Ghana in peculiar, have become a major concern today. This concern notwithstanding, the jobs seem every bit intractable as of all time. There are important disparities in income and criterions of life between the rural and urban populations ( GPRS, 2004 ) . This has resulted in the uninterrupted addition in the motion of people from the countryside to the metropolis, making a serious societal crisis, the branching of which is impacting the quality of life. The manifestations of this include ; people kiping on pavings and others sprawling in hovel slums, ragged mendicants, offenses and other aberrant behaviors such as harlotry, drug dependence and intoxicant maltreatment. ( GPRS, 2004 )
Approximately 60 % of Ghana ‘s population lives in rural countries and this can be regarded as a channel for economic growing and development in the rural countries and the state as a whole. This tendency is a great potency and when adequately harnessed can take to sustainable rural development. To accomplish this, assorted schemes are designed to better the economic and societal life rural inhabitants. Such schemes tend to include livelihood programmes aimed at the rural hapless. Some of these schemes include agro-based industrialisation ( agricultural processing ) , effectual decentalisation and private sector development ( GPRS, 2004 ) .
The success of these schemes flexible joints on a well working fiscal sector. It is by and large accepted that fiscal development is a requirement to economic development. Hence, Microfinance Institutions ( MFIs ) are indispensable to economic growing and development and thereby the decrease of poorness ( Heidhues and Schrieder, 1999 ) .
Furthermore, Heidhues and Schrieder, ( 1999 ) argued among others that fiscal markets are significance for economic advancement, therefore the unavailability of fiscal markets can be seen as a barrier to rural enterprisers and rural endeavor development
The Nadowli District depicts a typical rural economic system dominated by the agricultural sector with the commercialism and industrial sectors least developed. Agriculture entirely employs about 85 % of the labour force while commerce/service and industry history for 14 % and 1 % severally.
The commerce/service sector is the 2nd largest employer of the territory ‘s labour force after agribusiness. It encapsulates a broad scope of third activities. These include retailing and junior-grade trading, conveyance and fiscal services among other services ( Nadowli District, MTDP, 2004 ) .
There is merely one fiscal establishment in the territory. This is the Sonzelle Rural Bank Agency in Nadowli and its subdivision in Kaleo. The chief focal point of rural Bankss is to:
Provide loans for agricultural activities
Provide loans for commercialism and little graduated table industries
Provide security for client nest eggs ( Nadowli District, MTDP, 2004 ) .
However, this fiscal establishment has failed to supply the needful support for the assorted economic sectors in the territory peculiarly agribusiness and commercialism. This province of personal businesss is a restriction to enterprise development and enlargement.
As indicated in the territory medium term developments program, the following are the major challenges faced by rural endeavors in the territory:
Poor selling chances
Poor engineering in production ( Nadowli District, MTDP, 2004 ) .
The survey hence looks at the part of MFIs in the development of Rural Enterprises and the rural population as a whole.
1.2 Problem Situation and Statement
It is estimated that ‘About 66 % of Ghanaians live in colonies of less than 5,000 people, which are defined as rural ‘ ( GPRS, 2004 ) . Agribusiness is still the chief economic activity in rural countries of Ghana representing approximately ( 67.2 % ) of the labour force and the private informal sector ( 24.7 % ) . The authorities sector employs merely 3.9 % and about 4.2 % is employed by the private formal sector ( GLSS 4, 2000 ) .
Notwithstanding the huge part of agricultural and the private informal sectors to national development, they are bedeviled with legion jobs, of which limited entree to fiscal resources is the most often cited by enterprisers. Hence, any development efforts by these sectors require capital formation, of which efficient fiscal markets play a cardinal function ( Mckinnon, 1973 )
The state has over the past decennaries seen the proliferation of Financial Institutions and Non-Governmental Organizations ( NGOs ) which provide microfinance services and or plans. The attending these plans have drawn roots philosophically from advancement in cultivating autonomy among those in low poorness, and practically from the viability and high loan refund rates of many microfinance establishments. The plans assume that deficiency of or unequal capital is the chief barrier to the economic advancement of the hapless. The deficiency of enterpriser concern direction experience and preparation, nevertheless, may make a barrier every bit powerful and limit the growing potency of microenterprises. This is spurred by its popularity as a spacial development tool and a Panacea to the fiscal demands of rural enterprisers, who are frequently unable to run into the loan acquisition demands of conventional commercial Bankss, the direction and control of which is vested in the people as enshrined in the Banking Law 1989 ( Decree 225 ) ( Ghana: Banking jurisprudence Document ) .
Research shows that rural finance contributes to community economic development by raising the hapless and low-income people out of poorness by enabling them to prosecute in more productive farm and non-farm income-generating activities to raise their life criterions ( Zeller et al, 1996 ) . The effects of these are manifested in betterment in their nutritionary position, wellness and instruction, peculiarly in adult females and kids ( MkNelly and Dunford 1999, Khandker 1998, Wright 2000 ) .
This brings to the bow the critical challenge confronting all developing states of the demand to excite the development of rural endeavors, because there is turning acknowledgement that these endeavors can lend well to the creative activity of a stable civil society and the just distribution of wealth and chances.
To get the better of the fiscal restraints facing rural endeavors, all developing states, including Ghana, have developed assorted signifiers of advanced fiscal mediators over the old ages to supply the necessary fiscal and other support services required to excite their development. In Ghana, amongst the assorted signifiers of fiscal establishments initiated to advance the development of rural endeavors are the Rural Banking System, Micro-finance and Small Loans Centres ( MASLOC ) , the constitution of National Board for Small Scale Industries ( NBSSI ) , The Social Investment Fund ( SIF ) , GRATIS FOUNDATION, Formal/private sector commercial houses ( Lead houses ) , Food and Drugs Board ( FDB ) , Ghana Standards Board ( GSB ) , Ghana Export Promotion Council ( GEPC ) , District Assemblies among others for the rapid development of endeavors in the state ( Aggrey,1993 ) .
The authorization of these establishments includes the mobilization of fiscal resources within the vicinity, inter alia, for investing chiefly in the development of rural endeavors, as observed by Aggrey-Mensah ( 1993 ) . These establishments exist to supply fiscal support, preparation and proficient cognition among others to agro-based industries ( Shea-nut and Indian potato processing, cereal milling, weaving ) every bit good as handcrafts production, trading, building and conveyance services amongst others. The inquiry that lingers on is ; to what extent do MFIs lend to the development of rural endeavors in the territory?
It is in this province of personal businesss that necessitates the launch of this survey into the operations of microfinance establishments, to measure the public presentation of the rural endeavors that have benefited from microfinance establishments ‘ support and how this is reflected in the life criterions of the donees.
1.3 Research Questions:
The chief inquiry addressed by this survey is ; to what extent do MFIs lend to the development of rural endeavors the Nadowli District.
To accomplish this, the following specific research inquiries are to be addressed:
What type of support or service is being provided by microfinance establishments to rural endeavor?
Make rural endeavors have entree to micro fiscal services?
What are the conditions under which these support or services are provided?
How are the credits utilized by the donees?
What are the impacts of these on the development of rural endeavors and the supports of the enterprisers?
What are the failings and strengths of MFIs in the bringing of fiscal services to rural enterprisers?
1.4 General Aims:
The general aim of the survey is to measure the part of microfinance establishments to rural endeavors development in the survey country.
To accomplish this, the following specific aims will prosecute:
To happen out the type and extent of support being provided by MFIs to rural endeavors.
To happen out whether rural endeavors have entree to micro fiscal services.
To look into the conditions under which these supports are provided for rural endeavor development.
To analyse the use of the fiscal support given to donees and the impact on the public presentation of endeavors and local economic development.
To place failings and strengths in the bing direction system in the bringing of fiscal services to rural enterprisers.
To do recommendations based on findings for the growing and sustainable development of rural endeavors in the survey country.
1.5 Scope of the Survey:
The research will be conducted in the Nadowli Districts ( ND ) of the Upper West Region of Ghana. The survey will besides focused on the recognition installation provided by MFIs to rural enterprisers ( males and females ) between 2000 and 2010 who undertook non-agricultural activities for commercial intents and how efficaciously these endeavors are using these fiscal supports. The cardinal variables to be studied include the recognition measure and dealing cost, recognition targeting, bringing and support services. The remainder are recognition use, endeavor public presentation, alteration in family incomes and employment coevals.
1.6 Research Methodology:
The chief research design to be adopted is the Cross-sectional Design, with Case Study as the specific method. This is an empirical question that allows the research worker to look into and understand the kineticss of a peculiar system. It investigates modern-day phenomena within existent life state of affairss. Hence the instance survey method permits generalisation of the findings ( Twumasi, 2001 ) .
The “ before ” and “ after ” comparing will besides be adopted to measure the impact of the loans on endeavor public presentation in relation to alterations in end products, gross revenues and employment. These alterations observed will be analyzed in relation to the intercessions of Micro Finance Institutions in the country.
1.6.1 Data Beginnings and Collection Methods:
Both primary and secondary information beginnings will be used. The primary informations intends to arouse utile information from the Micro Financial Institutions ‘ staff that will include nest eggs and recognition targeting, bringing and support services and loan public presentation, while such variables as recognition use, endeavor public presentation, alteration in family incomes and employment coevals will be elicited from enterprisers who are engaged in agro-processing, trading, building, conveyance and other services and have had entree to loans from the micro fiscal establishments. The secondary beginnings will include records and other certifications.
In position of this, a two-pronged attack will be employed in the survey, concentrating on both supply and demand issues in relation to the funding of rural endeavors in the survey country ( Twumasi, 2001 ) .
1.6.2 Data aggregation tools:
Both quantitative and qualitative research methods shall be employed to ease the primary informations aggregation procedure. Specifically, the undermentioned methods shall be used:
Questionnaire is merely a self-administered interview. Therefore, it requires peculiarly self-explanatory instructions and inquiry design since there is frequently no interviewer or monitor present to construe the questionnaire to the topic. ( Smith, 1975:170 ) . This method shall be employed in bring forthing information from staff of NGOs and complementing bureaus that are into the country of rural endeavor development in the territory. This will ease the assemblage of quantitative informations on the aims. Open-ended and close-ended inquiries will be used to react to the demand of the assorted variables in the analysis. An open-ended inquiry is a inquiry the leaves the respondent free to react in a comparatively unrestricted mode. By contrast, a closed-ended inquiry restricts pick of response by coercing the respondent to react in footings of present classs or options. ( Smith, 1975:172 )
Interviews shall be conducted to bring forth qualitative information about the tendencies, degrees, and challenges involved in RED by the MFIs. Cannell and Kahn ( 1968:530 ) have defined the interview as a conversation with purpose specifically the intent of information-getting. Maccoby and Maccoby, ( 1954:499 ) as in Smith ( 1975:170 ) , view interview as a curious verbal interactive exchange “ in which one individual, the interviewer, efforts to arouse information or looks of sentiments or belief from another individual or individuals ” . Structured and semi-structured interviews shall aim staff of MFIs, and other NGOs who are confederates to the services of the studied MFIs in the territory every bit good as beneficiary persons, groups of persons and communities within the country of survey.
Focus Group Interviews will be employed in the survey of MFIs intercessions that are more of group or community benefit than individualistic.
1.6.3 Sampling technique:
In footings of trying technique, simple random trying technique shall be used to choose MFIs that will be covered by this research exercising, given the known list of MFIs that operate in the territory. This technique gives all the MFIs that operate in the territory, equal opportunities of being selected for the survey.
1.6.4 Sampling units:
Beneficiaries of MFIs under the survey will be arrived at utilizing graded sampling technique which will be based on age, sex and endeavor groupings. This method allows the survey population to be grouped into strata of homogeneousness to guarantee representative sample units for efficient and effectual appraisal of the parts of the MFIs in endeavor development in the territory. It will be ensured that respondents will represent 50 % of each beneficiary stratum per MFI to be studied utilizing simple random sampling. Questionnaires and interviews will so be administered to the respondents to bring forth elaborate information on beneficiary experiences and perceptual experiences about the services and impacts of the MFIs endeavor development in the territory ( Twumasi, 2001 ) .
1.6.5 Analysis of informations:
Qualitative and quantitative methods will be used for the analysis and readings of informations.
Quantitative informations obtained from the rural enterprisers and MFIs will be compiled and processed utilizing the Statistical Package for Social Scientist ( SPSS ) computing machine package.
Cross-tabulations will be used for the analysis. These will besides analyze the end product / growing in relation to certain features of the houses ( loan sums granted, figure of loan rhythms and instruction of proprietors ) . Tables, per centums, frequences and bar-charts will be used for the presentation of the consequences. Qualitative information will be analyzed by sum uping them into subjects and pulling decisions from them ( Twumasi, 2001 ) ..
1.7 Scheme of Work:
I propose a 10-Month research programme, working with three field helpers. The work will be based on the activities of micro finance programmes and rural endeavor development in Nadowli District of the Upper West Region, Ghana.
The research will be based on one-on-one interviews, focal point groups, and personal observations. I anticipate about 30 interviewees from rural enterprisers, including 3-5 microfinance suppliers as “ instance surveies ” who will be interviewed over clip. Focus groups will complement the interviews.
Fieldwork will be conducted in English and where executable, in the local linguistic communication, to continue people ‘s thoughts. Two field helpers that I will develop in qualitative research methods will carry on some of the interviews.
1.8 Significance of the Survey:
Majority of Ghana ‘s population lives in rural countries with agribusiness and little graduated table activities as their chief economic activities. With the rural sector bring forthing the majority of the state ‘s end product, their criterion of populating demand to be improved. One manner of making this is a carefully planned and implemented rural finance programmes necessary to speed up the gait of economic development.
Amongst the aims of the constitution of MFIs for illustration Rural Banks in Ghana is to set up institutional recognition to the rural inhabitants in their several countries of operation and thereby help in increased productiveness to make wealth for improved life criterions. As a consequence of this, the proviso of recognition to the rural hapless for the development of their endeavors has been high on the docket of authoritiess and many-sided assistance establishments for sometime now, but success has eluded most of the Rural Financial Institutions in developing states ( Yaron, 1992 ) . This has been blamed on high dealing cost involved in loaning to little and micro-enterprises that are widely scattered, direction cost, and deficiency of acceptable indirect amongst others. These constantly underpin the conditions under which most Bankss provide support to entrepreneurs. This therefore called for a survey into the recognition bringing support system of these MFIs, how the rural enterprisers utilize these supports and how it translates into betterment in the local economic system in the survey country.
The research hence sought to supply an entry point for reconstituting the recognition strategies with the position of doing them more efficient and effectual for the growing and sustainable development of rural endeavors in the survey country.
In position of the above, the findings of the research will be utile to the MFIs direction squads since their fiscal viability and long-term sustainability depend on the backing and degree of committedness of their patronage, every bit good as the public presentation of their endeavors.
The findings of the research will besides function as inputs and lessons to the authorities and those bureaus spearheading the run for support for rural endeavors. The significance of this survey besides lies in the fact that there are limited surveies in MFIs activities in the development of rural endeavors and hence it will besides add to the organic structure of literature which serves as a mention stuff for pupils and research workers.
1.9 Administrations of Study Report
The survey study shall be presented in six chief chapters. The first chapter which forms the introductory facets of the survey study shall consist: background to the survey, job state of affairs and statement, research inquiries and aims, and significance of the survey.
Chapter Two shall concentrate on reappraisal of relevant related literature and besides look at the historical and conceptual models of the survey. Chapter Three shall turn to methodological and analytical models of the survey. Emphasis shall be on profile of the survey country, trying techniques, informations aggregation and analytical methods. Chapter four shall be centered on presentation of instance descriptions from the survey whilst Chapter Five shall be discoursing the major findings of the survey.
Chapter Six shall consist Summary, Conclusions and Recommendations from the survey.
2.1 Literature Review
Rural finance and rural endeavor development:
This chapter examines the productive systems in rural economic systems, the MFIs and inventions in rural endeavor funding in the planetary position. In the context of Ghana, the reappraisal will be focused on the development of rural endeavors and the relationship between finance and rural endeavor development, and besides examine the rural fiscal systems. Consequences and lessons learnt from assorted advanced MFIs in relation to funding and endeavor development will be reviewed, it will besides supply an overview of what has happened in other parts of the universe to assist inform the analysis of the survey.
The Nature, Characterization and Operations of Rural Financial Systems:
Rural fiscal systems or markets are mechanisms within the domestic fiscal systems which guarantee the handiness, handiness and use of rural finance. The nature and feature of each fiscal system is frequently based on the demand for and supply of rural finance. Harmonizing to Pagura ( 2004 ) , “ rural finance is normally demanded for ;
Agribusiness production – medium and long-run loans, renting agreements, lines of recognition, harvest insurance among others.
Agribusiness based industry – investing and working capital loans, lines of recognition
Non-farm endeavor and trade-investment loans, short-run on the job capital loans, and
Household consumer finance – exigency loans, wellness insurance, nest eggs, remittals, lodging ”
As a consequence of these, there are a myriad of rural fiscal systems which tend to be fragmented ( Germidis, 1990 ; Besley, 1994 ) and consist of informal, semiformal and formal fiscal mediators ( Pearce, 2004 ; Pagura, 2004 ) . The function and activities of these sub-sectors are mostly complementary and do convergences.
The Informal or Non-Institutional Rural Finance:
Informal fiscal establishments tend to be non-bureaucratic and much more flexible in regard of loan intent, involvement rates, collateral demands, adulthood period and debt rescheduling ( Ghate, 1992 ) . However, Gordon ( 2000 ) observed that involvement rates for rural finance are normally high and loans are taken out for short periods. Such loaners are normally based within the community – they know their clients ; they know their clients ‘ concerns ; and they can use force per unit area from within the community to guarantee that loans are repaid. For many rural people, borrowing from the informal beginnings is a last resort, but even though the cost of adoption may be high, such loaners provide an of import beginning of hard currency in rural communities where there are few, if any, options. Where recognition is non available, families may hold to consume their plus base ( spend nest eggs, or sell gems or farm animal ) or travel without indispensable points, including nutrient.
Despite these restrictions, including unequal fiscal resources and legal restraints ( Nwanna, 1996 ) , informal fiscal establishments continue to play a important function in run intoing the recognition demands of rural dwellers and rural enterprisers.
Semiformal Rural Finance:
In Pagura ‘s word picture, Village Banks, Cooperatives, Non Governmental Organizations ( NGOs ) , Credit Unions ( CUs ) , Input Suppliers, Agribusiness Companies and Marketing Companies are considered to be the semi formal mediators in the rural countries, in that they are officially registered, but are non licensed and regulated by the cardinal bank of a state.
The Formal or Institutional Rural Finance:
The formal fiscal mediators or establishments are those that are incorporated under Companies ‘ Codes, which give them legal entities as limited liability companies, and later licensed by their several Cardinal Banks under either the Banking Laws or the Fiscal Institutions ( Non-Banking ) Law as in the instance of Ghana to supply fiscal services under lay down ordinances.
Pagura ( 2004 ) indicated that the beginnings of financess in the formal portion of rural finance markets are chiefly: ( a ) co-operatives that meet the demands of short, average and long-run recognition ; ( B ) commercial, concerted and specialised Bankss ; ( c ) micro-finance establishments ( MFIs ) and assorted authorities bureaus including those established for agricultural development. The operations of fiscal establishments in formal rural fiscal markets are typically to a great extent regulated, and the nature and extent of formalities, every bit good as the involvement rate construction, normally make entree to recognition from this market restricted to limited sections of the rural population.
Inventions in Rural Enterprise Financing in the Global Context:
Assorted advanced banking systems have been developed all over the universe to function the rural population, peculiarly the hapless, who are unable to entree recognition from the conventional banking establishments for investing into their endeavors and other family demands. These establishments frequently expand entree to new sections of the rural population non traditionally served, create quality additions in footings and status of current merchandises already being offered and broaden the assortment to offering new merchandises and services. Amongst these advanced banking systems are the Grameen banking in Bangladesh and the Village banking in Latin America.
The Grameen Bank, started in 1976 is the encephalon kid of Dr.Mohammed Yunus, and the first microfinance organisation started in Bangladesh that provide little loans to the hapless with no collateral.
The bank will give an sum to little groups and the persons in the group use the money available in bends until all members benefit. However, loan refund is arranged to be paid hebdomadal ( Yunus, 2002 ) . The bank ‘s current operation covers over two million adult females globally and can be found in several states worldwide.
Village banking, a construct developed in Latin America in the Bolivian Andes by John Hatch, Rupert Scofield and Achilles Lanao in 1980s, is now being implemented in 28 states worldwide including El Salvador, Honduras, Mexico, Costa Rica and Haiti, in different signifiers. Village banking is a rural fiscal services theoretical account that enables hapless communities to set up their ain recognition and nest eggs associations, or, village Bankss. ( Nelson, MkNelly, Stack & A ; Yanovitch, 1996 ) .
Rural Enterprise Development and Financing in Ghana:
There are assorted types and sizes of rural endeavors. The nature and features of these endeavors influence the extent to which they can entree fiscal and other support services for their development. A brief on the nexus between finance and endeavor development is hence necessary from which the rural fiscal systems in Ghana can be dovetailed.
Word picture of rural endeavors in Ghana
A glean at some of the Medium Term Development Plans revealed most of the cardinal rural economic activities in Ghana. A study conducted by Boapeah and Poppe ( 1992 ) in the Dangme West District, Ghana besides provided some of the endeavors that can be found in a typical rural environment of Ghana. These endeavors have been grouped into the following five major classs as used by Boapeah and Poppe:
Agro-based: Bakery, Cassava processing ( bitter cassava ) , Palm oil extraction, Shea butter extraction, Dawadawa Processing, Cotton ginning, Pito brewing, Milling, Fish smoke, Distillation
Clothing: Dressmaking, Textile, Mat weaving
Wood-based: Carpentry, Charcoal combustion, Boat edifice
Metallic element: Blacksmithing, Suiting
Others: Basketry, Block devising, clayware
Most writers and research workers have observed that the size of an endeavor plays a important function ( amongst others ) in whether or non the endeavor will obtain recognition. By and large, the larger the endeavor, the greater the likeliness it has to get the better of some of the structural lacks, and hence the better its opportunities of obtaining recognition. In the same vena, the smaller the endeavor the more unattractive it is most likely to be as most fiscal establishments will ever desire to retrieve their costs and do a sensible net income, which ever non gettable from little loaning. It is for the latter extremely disadvantage group located largely in the rural countries that the Microfinance construct was developed to do extension of recognition to this group possible.
The Theoretical nexus between Finance and Enterprise Development
The intent of this subdivision is to discourse the relation between finance and endeavor development.
The economic mechanism by which more investing leads to more growing and hence development can be described in footings of the Harrod-Domor growing theoretical account. The theoretical account relates the coevals of entire end product to the stock of capital through what is described as the capital – end product ratio: the sum of end product that the capital can be transformed into. This theoretical account was designed by two people ; Roy Harrod ( 1939 ) and Evesey Domor ( 1946 ) . These two economic experts worked independently but about came to a similar decision. Their decision was that economic growing was dependent on investing which is described as the traveling force behind the procedure of growing ( Todaro, 2000 ) .
The Harrod-Domor growing theoretical account argues that as a premier mover, investing has a double function ; the demand and capacity functions. They defined investing as a alteration in capital stock, and when this is taking topographic point in an economic system it creates an chance for increased demand ; the investings create extra ingestion and therefore trigger off demand for existent end product. They besides argued that net investing in an economic system has the inclination to increase the economic systems productive capacity. Therefore for growing to be sustainable, investing must ever increase to increase ingestion to absorb the extra capacity that is created.
The function of finance is hence a critical component for economic growing and constantly the development of endeavors. There is strong and turning grounds that many endeavors, peculiarly rural endeavors, have really high rates of return to capital that may prevail overtime for some endeavors because of the extremely disconnected nature of fiscal markets. McKenzie and Woodruff ( 2004 ) found that the rate of return is every bit high as 15 % per month for micro endeavors in Mexico.
Enterprises are frequently found in both the rural and urban sectors of a state, hence it ‘s of import to analyze the rural fiscal systems in Ghana and how they contribute to the development of rural endeavors.
Rural Financial Systems in Ghana
The rural fiscal markets in Ghana is every bit disconnected as in the instance of other developing states and consist of informal, semiformal and formal fiscal mediators.
The informal fiscal establishment covers a scope of activities known as susu, including single nest eggs aggregators, recognition associations and nest eggs and recognition “ nines ” run by an operator. It besides includes usurers, trade creditors, self-help groups, and personal loans from friends and relations. Whiles the semiformal fiscal establishments includes the assorted NGOs and the Credit Unions ( CUs ) which are officially registered, but are non licensed and regulated by the Bank of Ghana. The Formal fiscal system in Ghana consist mostly of a cardinal bank, commercial Bankss, insurance companies, price reduction houses, finance houses, renting companies ‘ nest eggs and loans associations, rural Bankss and a stock exchange ( Nwanna, 1996 ) .