18.104.22.168 Access to Inputs, Markets and Services
Rural development is hindered by the insufficient utilization
of inputs. Only specific groups of farms employ modern, yield
By means of measures affecting the price and interest policies,
the governments should encourage the small farms to increase
the utilization of purchased inputs. To that end, local institutions
have to be established in order to make them available, all
of the farms must have equal access, and it should be possible
for local groups to participate. It is of crucial importance
that the capital goods be available at the appropriate time
and as input package.
Regarding the organization of extension services, various
forms should be experimented with, and particular attention
should be paid to reaching small farms and cooperatives. In
order to equip subsistence farms with inputs, preferential
prices should eventually be conceded and the access to social
Local markets and cooperative institutions should be promoted
to improve the conditions on the credit and commodity markets.
Especially small farms will benefit from the promotion of
informal markets and cooperatives. When making credit available,
the requirements of small farms for building houses, consumption,
production, and refunding debts should be taken into consideration.
Eventually, subsidies will be required to compensate for the
high costs of granting loans to small farms; the same applies
to risk funds. Owing to the low risk capacity, insurance against
crop failures, price support, and other measures against price
fluctuations are of special importance to small farmers. All
marketing institutions need a well developed infrastructure
for which public and local funds have to be made available.
The price policy should ensure that in the choice between
products for the domestic supply and for exportation, attention
is paid to the interests of the domestic food supply.
Rural development demands more research on problems of the
rural sector and funds must be supplied for that purpose.
The goal of eliminating poverty should be given due consideration
in fixing the research priorities, and appropriate technology
for small farms and cooperatives should be conceived. The
problems of agriculture in arid regions and shifting cultivation
are also urgent. Technological and economic research should
be coordinated with social science studies in order to understand
the socioeconomic implications of technological change in
particular. Especially studies and innovations which minimize
ecological disturbances are worth promoting, as well as studies
on cheap building technology for building houses for the poor
in the rural areas.