INSTITUTIONAL ECONOMIC RECONSTRUCTION BY OPTIMIZING THE ROLE OF MIDDLEMEN
Abstract: This study is aimed
to analize the role of middlemen in rural economic institution and formulate
the economic development model through optimalization the role of middlemen.
This study was done by conducting literature research. Data were analized by
using qualitative method. The results of study conclude that middlemen have
strategic positions in rural economic development although their role has
negative and positive side. In evolving the positive side, there must be other
institution which has capability to substitute part of middlemen role. That is
microfinance institution (MFIs) which also play the role as an empowerment
institution. In loan mechanism, the middlemen can be functioned as a credit
guarantee institution. Credit guarantee from middlemen is not only as a
contract in agriculture product marketing, but also as the supervision way to
create obedience in loan repayment by farmers. The implementation of this
pattern is purposed to nurture the social capital in rural economic system.
Author: Jajat Sudrajat,
Norasari Arani
Journal Code: jpsosiologigg160020
