Professor Christopher Woodruff - Professor of Economics, University of Warwick, UK

Chris discusses the innovative system of back-to-back letters of credits in overcoming financial constraints in the Bangladesh garments sector. When the manufacturing order comes it arrives with a letter of credit, which can be taken to the bank and turned into a letter of credit to pay for the inputs. When the manufacturing goods are bought, both letters of credit are resolved and the finance flows back to the bank.