The revival of smallholder cash crops in Africa: public and private roles in the provision of finance
Andrew Dorward () and
Additional contact information
Colin Poulton: Department of Agricultural Economics and Business Management, Wye College, UK, Postal: Department of Agricultural Economics and Business Management, Wye College, UK
Jonathan Kydd: Department of Agricultural Economics and Business Management, Wye College, UK, Postal: Department of Agricultural Economics and Business Management, Wye College, UK
Journal of International Development, 1998, vol. 10, issue 1, 85-103
This paper examines the role of finance in smallholder cash crop production in Sub-Saharan Africa following market liberalization, drawing on theoretical arguments and fieldwork in Ghana, Tanzania and (for comparison) Pakistan. Smallholders' needs for finance for input purchase and traders' needs for finance to facilitate the supply of inputs and the purchase of produce are considered. It is argued that many smallholders need seasonal credit if they are to use inputs and that this can often be best achieved by loans to intermediary traders. But the development of credit markets is blocked by a high incidence of 'strategic default' on loans. Various mechanisms can be used to improve loan repayment rates from farmers, and these are analysed with a particular focus on 'interlocked contracts'. © 1998 John Wiley & Sons, Ltd.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:10:y:1998:i:1:p:85-103
Access Statistics for this article
Journal of International Development is currently edited by Paul Mosley and Hazel Johnson
More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().