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Learning Resources

Title Investments in rural finance for agriculture
Abstract Providing financial services to households and agribusiness in poorer and marginal rural areas remains a challenge for the World Bank and other funding agencies. Although the adoption of a financial systems approach and the expansion of the microfinance sector have led to significant breakthroughs in performance, outreach, and lending volumes, this has rarely extended to more marginal rural areas dependent on agriculture. Recent progress in providing financial services have impacted poor rural households with diversified nonfarm income sources or income from nonseasonal agricultural activities. Several factors increase cost and risks of financing agriculture and for these reasons financial service providers perceive investment in agriculture to be unattractive (see box 7.1). However, recent efforts by the World Bank and other organizations are starting to bear fruit in the form of emerging models and successful approaches. Rather than repeating a comprehensive treatment of the well-documented challenges and past failures of agricultural finance (World Bank, forthcoming; IADB 2001; Yaron, Benjamin, and Piprek 1997), this Module explores promising new directions in rural finance for agriculture, and identifies lessons for policy and lending.
Year 2003
Format Book (electronic)
Infotype Reference material;
AGROVOC Investment; Financing; Credit; Rural areas; Credit policies;
Subject Enabling environment for markets to improve livelihoods