Abstract
Madagascar is committed to implementing local financial services to facilitate rural households' access to these various services and promote rural development. The objective of the study is to understand the realities of the financing system in rural areas and more particularly in the rural commune of Alakamisy Itenina in vohibato district, and this, through the experience of rural households that determine the different financial needs and their financial priority. Using the Schwartz formula, surveys of 81 households were statistically treated. The results show that rural households prioritize social needs by meeting the social obligations dictated by fihavanana. The first place of the social obligations is perceived through the attachment to the traditional practice by the proverb “atero k'alao” which means "one receives by giving". This is how behavioural logic has been observed in localities far from financial services. Changing this behavioral logic turns out to be the best option. Rural households should accept new forms of financial innovation.
Highlights
Agricultural and rural finance has been an important component of development strategies adopted by Southern countries since the late 1950s Yaron et al (1998)
The objective of the study is to understand the realities of the financing system in rural areas and more in the rural commune of Alakamisy Itenina in vohibato district, and this, through the experience of rural households that determine the different financial needs and their financial priority
The following question: How can rural households be motivated to access operating and investment credit to increase agricultural productivity? Since motivation is linked to the prioritization of social needs over other financial needs, the following research questions arise: How can the different types of financial needs of rural households be allocated? How can we identify the financial priority of rural households? How do rural households behave in the face of financial needs? The objective of this study is to understand the realities of the rural finance system
Summary
Agricultural and rural finance has been an important component of development strategies adopted by Southern countries since the late 1950s Yaron et al (1998). The history of institutional agricultural credit in Madagascar, dating back to 1926, has much in common with other African countries colonized by France. Malagasy peasants have experienced nominal benefit from agricultural credit because they have received only 3% of the total profits. The needs of the rural population determine their priority for access to credit and the use of their income. The analysis of new credit practices was implemented at a time when the entire rural financing system was undergoing reform. In this case, the study should focus on the factors of success and failure of interventions conducted by banks or development projects.
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