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Agricultural Credit in Latin America: A Critical Review of External Funding Policy
Author(s) -
Adams Dale W
Publication year - 1971
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237428
Subject(s) - latin americans , incentive , economic shortage , agriculture , economics , credit crunch , credit history , value (mathematics) , business , finance , financial system , political science , market economy , geography , linguistics , philosophy , archaeology , machine learning , government (linguistics) , computer science , law
Abstract During the 1960's aid agencies channelled over one billion dollars to agricultural credit systems in Latin America. This plus local funds boosted the real value of rural credit by 12 percent per year. A number of assumptions underlying past credit policy are critically examined. It is argued that currently credit shortage is not the most pressing issue. Rather, emphasis should be placed on realistic pricing of rural credit and mobilizing rural savings for credit use through interest incentives.