Abstract
An efficient rural financial market plays an important role in the development and growth of productivity in agriculture and livestock. This means setting up a financial system to meet the typical functions of a market economy and above all the mobilization and allocation of financial resources to this sector and coordination with sources of donors and of the state budget. In this context, perhaps it is useful to set up a bank profiled in agriculture and rural development, ending anarchy of today and by establishing opportunities for better coverage to the growing needs of this sector. This would help for the displacement of available funds to the agrarian sector, either through a specialized bank without curb or deter the existing commercial banks, and the combination with other efforts in the form of investment funds, would constitute a good opportunity for to finance agricultural development with nonpublic resources. DOI: 10.5901/ajis.2015.v4n3s1p611
Highlights
Agricultural producer’s opportunities for additional financial resources over the past two decades, faced a lot of constraints which have impacts on production, farm restructuring and investments to be carried out
An efficient rural financial market, plays an important role in the development and growth of productivity in agriculture and livestock. This means setting up a financial system to meet the typical functions of a market economy and above all the mobilization and allocation of financial resources of this sector and their coordination with donors and the state budget resources
All this paper identifies the problems of market performance and microcredit in rural sector and the impact of this form of financing in the sector
Summary
Agricultural producer’s opportunities for additional financial resources over the past two decades, faced a lot of constraints which have impacts on production, farm restructuring and investments to be carried out. These restrictions are a result of a combination of factors derived from the incomplete and costly information in rural financial markets and a number of specific problems that characterize the rural sector. An efficient rural financial market, plays an important role in the development and growth of productivity in agriculture and livestock This means setting up a financial system to meet the typical functions of a market economy and above all the mobilization and allocation of financial resources of this sector and their coordination with donors and the state budget resources. It combines research profit motive with social development priorities of these economies
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