Financing agricultural development

The significant variations in agricultural production and trade, over time and among developing countries and regions, as documented in the previous chapters, raise questions as to the role that agricultural finance plays in creating such differences. Past levels of investment in livestock, tree crops, land improvement, irrigation works, agricultural machinery and infrastructure, are powerful explanatory factors. Similarly, relative levels of expenditure on agricultural services and inputs can also help explain the variations. An analysis of these flows could identify useful policy prescriptions, leading to a more rational use of scarce resources and the attainment of higher performance levels.