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This publication provides insight into the nature and operations of agricultural investment funds and draws lessons for development agencies, governments and investors. It was developed from “Agricultural investment funds for developing countries” (2009), a research study undertaken as a joint collaboration of ConCap Connective Capital (ConCap) and the Food and Agriculture Organization of the United Nations (FAO) in order to better understand the growth and potential of agriculture and agribusiness investment funds. It included a stocktaking analysis of agricultural investment funds as well as case studies of distinct funds and fund management structures. This publication is enhanced with a complementary analysis of agricultural funds in the broader context [...]

Microcredit and micro-insurance, considered within the larger microfinance current, are two risk management tools currently being developed by governments and international development agencies to reduce vulnerability associated with poverty in rural areas. Discussions about credit protection increasingly invoke the need to create linkages with insurance services that are tailored to the risks rural people in developing countries face. Once a country’s financial and banking sectors have been developed, the pairing of these two instruments could do one of two things. It may present a veritable opportunity to emerge from the vicious cycle of poverty, or it may introduce an additional [...]

This paper introduces the key principles and methods related to socio-economic and livelihoods analysis in investment planning. It includes a discussion of the importance of understanding the constraints of the rural poor in identification and preparation of investment programmes. It explains the processes of identifying the constraints of the rural poor, the extent and nature of their vulnerability, and their coping strategies in times of food shortage. In addition, it provides an understanding of the roles/functions of rural institutions and presents some methods used in community analysis. Finally, it discusses the implications of socio-economic and livelihoods analysis for the design [...]

This paper examines the main characteristics of agricultural inputs and marketing services, including factors affecting demand and supply for major categories of services, namely fertilizers and chemicals, seeds and planting materials, agricultural machinery and equipment, and crop marketing. The main sources of market failure are outlined. The conceptual framework which underpin the main approaches to decentralization of these services and key factors that need to be considered are next discussed. The importance of the regulatory role and adoption of a regulatory strategy are highlighted. Policy implications, in terms of possible options for decentralization (divestment, deconcentration, devolution and establishing partnerships), and [...]

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 [...]

This issue paper provides an overview of “Decentralization of Agricultural Services”. It first explains the range and importance of agricultural services; the traditional role that governments had assumed in their provision; consequences of public sector interventions; and the perceived need for institutional reform, including a reduced role for central government in service provision. It then examines the conceptual framework for policy decisions. Aspects highlighted are the economic rationale for government intervention; functional responsibilities for service provision; and challenges and risks in diversifying provision. Options for reforming agricultural services and how the reform process would need to be planned and managed [...]