Achieving Improved Financing for Low-Income Producers in Developing Countries: The Second Set of Approaches

Abstract

The availability of affordable financial capital to the rural population has long been a prime component of development strategy. Many rural businesses rely on borrowed funds to help finance their daily operations, and few have the resources to finance significant expansion of their capital solely with current revenues and retai ned earnings. The general consensus is that with adequate financing, businesses can adjust to market and technological developments in ways that improve the productivity of local resources. This paper reviews the second set of approaches for achieving improved financing for low-income producers in developing countries.

KEY WORDS: Approaches, Improved Access, Finance, Low-income, Producers.