Publication:
Subsidies as an Instrument in Agriculture Finance : A Review

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dc.contributor.authorMeyer, Richard L.
dc.date.accessioned2013-03-13T18:26:54Z
dc.date.available2013-03-13T18:26:54Z
dc.date.issued2011
dc.description.abstractThis paper presents a literature review of issues related to recent subsidies and investments in the financial sector that have been designed to address the immediate effects of the crises and to develop the financial institutions necessary to modernize agriculture. Section two of the paper discusses the impact of recent food, fuel, and financial crises on developing countries and the emergency actions taken by countries and international agencies to reduce the suffering inflicted on poor people. It also discusses the challenge of finding a balance between pragmatic immediate responses and longer-term objectives. The third section discusses the role of finance in agricultural development and poverty alleviation. Section four deals with the challenge of creating credit markets in developing countries. The fifth section covers shifts in the paradigm used to intervene in credit markets and summarizes the main features of the old directed-credit and the new financial systems paradigms. This is followed by a sixth section that summarizes highlights in the development of the microfinance industry. It covers guidelines created for developing microfinance, microfinance penetration into rural areas and agriculture, innovations and prospects for future agricultural lending, and insights gained about the impact of finance on poor households. The seventh section addresses topics related to the demand for credit, including rates of return earned in agriculture and in microenterprises, and research results analyzing sensitivity of loan demand to interest rates. Section eight describes major interventions by international agencies and points the way forward for agricultural credit. It reviews the debates about the use of grants and subsidies, especially in the food, fertilizer, and credit markets, and the rationale for smart subsidies. It then describes experiences in five major areas of international agency activities: micro-insurance and weather-index-based insurance, credit guarantee funds, warehouse receipts, specialized agricultural development banks, and agricultural investment funds. Section nine summarizes the main conclusions based on literature consulted for this review. It identifies major lessons learned with suggestions for priorities that Improving Capacity Building in Rural Finance (CABFIN) members might consider supporting in their projects and programs.en
dc.identifierhttp://documents.worldbank.org/curated/en/2011/06/16461413/subsidies-instrument-agricultural-finance-review
dc.identifier.doi10.1596/12696
dc.identifier.urihttps://hdl.handle.net/10986/12696
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCIAL SERVICES
dc.subjectAGRICULTURAL BANK
dc.subjectAGRICULTURAL BANKS
dc.subjectAGRICULTURAL COOPERATIVES
dc.subjectAGRICULTURAL CREDIT
dc.subjectAGRICULTURAL DEVELOPMENT BANK
dc.subjectAGRICULTURAL DEVELOPMENT BANKS
dc.subjectAGRICULTURAL FINANCE
dc.subjectAGRICULTURAL SECTOR
dc.subjectAGRICULTURE ORGANIZATION
dc.subjectASYMMETRIC INFORMATION
dc.subjectAVAILABILITY OF CREDIT
dc.subjectBANK BRANCHES
dc.subjectBANK DEPOSITS
dc.subjectBANK LENDING
dc.subjectBANKING NETWORK
dc.subjectBANKING NETWORKS
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL MARKETS
dc.subjectCASH FLOW
dc.subjectCASH FLOWS
dc.subjectCASH RESERVES
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL FARMERS
dc.subjectCOMMERCIAL LENDERS
dc.subjectCREDIT ANALYSIS
dc.subjectCREDIT ASSOCIATION
dc.subjectCREDIT ASSOCIATIONS
dc.subjectCREDIT BUREAUS
dc.subjectCREDIT COOPERATIVES
dc.subjectCREDIT GUARANTEE
dc.subjectCREDIT INSTITUTION
dc.subjectCREDIT INSTITUTIONS
dc.subjectCREDIT LINES
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKET FAILURES
dc.subjectCREDIT MARKETS
dc.subjectCREDIT OFFICER
dc.subjectCREDIT OFFICERS
dc.subjectCREDIT PROGRAMS
dc.subjectCREDIT SUBSIDIES
dc.subjectCREDIT UNIONS
dc.subjectCREDITOR
dc.subjectCROP FAILURES
dc.subjectCUSTOMER SERVICE
dc.subjectDEBT
dc.subjectDEBT REPAYMENT
dc.subjectDEBTS
dc.subjectDEMAND FOR CREDIT
dc.subjectDEPOSIT
dc.subjectDEPOSITOR
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT FINANCE
dc.subjectDIRECTED CREDIT
dc.subjectDONOR FUNDING
dc.subjectECONOMIC BARRIERS
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT GROWTH
dc.subjectENTERPRISE ASSISTANCE
dc.subjectENTERPRISE DEVELOPMENT
dc.subjectEXPENDITURES
dc.subjectEXPORT CROPS
dc.subjectFARMER
dc.subjectFARMERS
dc.subjectFEMALE CLIENTS
dc.subjectFINANCIAL ACCESS
dc.subjectFINANCIAL DELIVERY
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INNOVATIONS
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL NEEDS
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL REFORMS
dc.subjectFINANCIAL SECTOR DEVELOPMENT
dc.subjectFINANCIAL SECTOR POLICIES
dc.subjectFINANCIAL SECTOR REFORM
dc.subjectFINANCIAL SERVICE
dc.subjectFINANCIAL SERVICE PROVIDERS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SUSTAINABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFLEXIBLE LOANS
dc.subjectFORMAL CREDIT
dc.subjectFORMAL FINANCIAL INSTITUTIONS
dc.subjectFORMS OF COLLATERAL
dc.subjectFUNDING SOURCES
dc.subjectGOVERNMENT CREDIT
dc.subjectGOVERNMENT INTERVENTION
dc.subjectGOVERNMENT SECURITIES
dc.subjectGREEN REVOLUTION
dc.subjectGROUP LENDING
dc.subjectGUARANTEE SCHEMES
dc.subjectHIGH INTEREST RATES
dc.subjectHOUSEHOLD FOOD SECURITY
dc.subjectHOUSEHOLDS
dc.subjectID
dc.subjectINFORMAL CREDIT
dc.subjectINFORMAL FINANCE
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION SYSTEMS
dc.subjectINSTITUTIONAL CAPACITY
dc.subjectINSTITUTIONAL REFORMS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE CEILINGS
dc.subjectINTEREST RATE RESTRICTIONS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT VEHICLE
dc.subjectJOINT LIABILITY
dc.subjectLACK OF COLLATERAL
dc.subjectLAND MARKET
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLOAN
dc.subjectLOAN CONTRACTS
dc.subjectLOAN DEFAULT
dc.subjectLOAN DEMAND
dc.subjectLOAN FUNDS
dc.subjectLOAN GUARANTEES
dc.subjectLOAN OFFICER
dc.subjectLOAN PAYMENTS
dc.subjectLOAN PORTFOLIO
dc.subjectLOAN RECOVERY
dc.subjectLOAN REPAYMENT
dc.subjectLOAN SIZE
dc.subjectLOANS TO FARMER
dc.subjectLOANS TO FARMERS
dc.subjectLOW INTEREST RATE
dc.subjectLOW INTEREST RATES
dc.subjectMARKET DEVELOPMENT
dc.subjectMARKET INFORMATION
dc.subjectMFI
dc.subjectMFIS
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMICROINSURANCE
dc.subjectMONEY TRANSFERS
dc.subjectMONEYLENDERS
dc.subjectMORAL HAZARD
dc.subjectMUTUAL FUND
dc.subjectNUTRITION
dc.subjectOPERATING COSTS
dc.subjectOUTREACH
dc.subjectPAWN
dc.subjectPAWN SHOPS
dc.subjectPOINT-OF-SALE
dc.subjectPOLICY ENVIRONMENT
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE INVESTMENT
dc.subjectPROFITABILITY
dc.subjectPROVISION OF CREDIT
dc.subjectPROVISION OF FINANCE
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC SUBSIDIES
dc.subjectPUBLIC-PRIVATE PARTNERSHIPS
dc.subjectRATES OF RETURN
dc.subjectREINVESTMENTS
dc.subjectREMITTANCES
dc.subjectREPAYMENT SCHEDULES
dc.subjectRESERVE REQUIREMENTS
dc.subjectRISK MANAGEMENT
dc.subjectRURAL BUSINESSES
dc.subjectRURAL CREDIT
dc.subjectRURAL FINANCE
dc.subjectRURAL FINANCIAL INSTITUTIONS
dc.subjectRURAL FINANCIAL SERVICES
dc.subjectRURAL FINANCIAL SYSTEMS
dc.subjectSAFETY NET
dc.subjectSAFETY NETS
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNTS
dc.subjectSAVINGS BANKS
dc.subjectSAVINGS GROUPS
dc.subjectSAVINGS RATES
dc.subjectSMALL BANK
dc.subjectSMALL FARMER
dc.subjectSMALL FARMERS
dc.subjectSMALL LOANS
dc.subjectSMALLHOLDERS
dc.subjectSMART CARDS
dc.subjectSTART-UPS
dc.subjectSUBSIDIZATION
dc.subjectSUPPLY CHAIN
dc.subjectSUPPLY OF CREDIT
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTRANSACTION COSTS
dc.subjectURBAN AREAS
dc.subjectVILLAGE
dc.subjectVILLAGES
dc.subjectVOUCHER
dc.subjectVULNERABLE GROUPS
dc.subjectWAREHOUSE
dc.subjectWAREHOUSE RECEIPT
dc.subjectWAREHOUSE RECEIPT SYSTEMS
dc.subjectWAREHOUSE RECEIPTS
dc.subjectWAREHOUSES
dc.subjectWORKING CAPITAL
dc.titleSubsidies as an Instrument in Agriculture Finance : A Reviewen
dspace.entity.typePublication
okr.date.disclosure2012-07-03
okr.date.doiregistration2025-05-07T11:28:22.919698Z
okr.doctypeEconomic & Sector Work::Other Agricultural Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2011/06/16461413/subsidies-instrument-agricultural-finance-review
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.guid722071468154458817
okr.identifier.externaldocumentum000333037_20120703022627
okr.identifier.internaldocumentum16461413
okr.identifier.report70730
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/07/03/000333037_20120703022627/Rendered/PDF/707300ESW0P1120ies0as0an0Instrument.pdfen
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicMacroeconomics and Economic Growth
okr.unitAgriculture & Rural Dvmnt (ARD)
okr.volume1 of 1
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