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Investment and Resource Mobilisation: Sources and Uses of Financial Resources

Thematic Overview. EASYPol Module 145










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    The incidence of risk in agriculture is important to policy makers at national and international levels. Fluctuations in producer incomes, and particularly the threat of catastrophic loss, may present difficult welfare problems for these same producers, their governments, and the international community. Trading losses at the level of market intermediaries, such as traders and processors, negatively impact the development of sustainable trading and finance activities in the commodity sectors. In more extreme cases, international humanitarian assistance may be necessary, but that assistance may destabilize markets, create dependencies, or bias management via expectations of future disaster relief.
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    Strategies for Financing Farm Activities
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    This document suggests a syllabus for one of the modules in the FAO sponsored learning series which deals with investment and resource mobilization in rural economies. The document outlines basic concepts and provides a framework for thinking about various strategies, instruments and institutions for improving access by farmers to financial resources. This module discusses issues and reviews recent developments in this topical area. In addition, it suggests some new approaches for securing ad ditional financial resources for the funding of rural investments.
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    Investment and Resource Mobilisation Sector Wide Approaches (SWAps)
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    This document presents background material for the session on sector wide approaches, or SWAps, as part of the module on investment and resource mobilization. It provides an overview of the SWAp concept and summarizes recent experience in SWAp implementation. It is based largely on a recently completed review of SWAps in agricultural and rural development and good practice guidelines developed by the Organization for Economic Cooperation and Development (OECD)1. Other key reference documents are listed in the annex.

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