strategy
Providing loans to agriculture
Implementation:
In thirty-three years of operations in Latin America and the Caribbean, the Inter-American Development Bank (IDB) has made 586 loans for US$10,900 million finance agricultural and fisheries projects costing a total of $25,400 million. Some of the largest agricultural loans in 1993 include $48 million for agricultural development in the Dominican Republic, and $7.25 million and US$8.75 million to strengthen agricultural services in Nicaragua.The UN Food and Agricultural Organization (FAO) Investment Centre helps countries to identify and formulate investment projects and directs capital to agricultural development. By 1992, some 873 FAO assisted investment projects had been approved for a total of US$45,000 million. More than half of this sum was provided in the form of loans from financial institutions such as the World Bank, with the balance made up by recipient countries.
Broader:
ProvidingConservingProviding loans Facilitates:
Developing agricultureReducing uncertainty of development programmes due to short-term loans Problems:
Bad loansBank fraud
Defaults on international loans
Deteriorating terms of international financial loans to vulnerable countries
Discrimination against women in banking
Domination of restrictive project loans by transnational banks
Excessive anxiety on overseas lending
Fraudulent loans
Inadequate diversification of loans to vulnerable countries
Insufficient programme funding
Limited availability of loans
Over-dependency on international financial institutions
Racial discrimination in according financial loans
Restrictive conditions on loans through intergovernmental facilities
Reverse flow of financial aid
Uncertainty of development programmes due to short-term loans
Unethical financial practices
Unpaid debts
Organizations:
FAO Investment Centre Inter-American Development Bank Subjects:
Commerce → CreditAgriculture, Fisheries → Agriculture
Type Classification:
C: Cross-sectoral strategies Related UN Sustainable Development Goals:
