Rural finance policies for food security of the poor

The objective of IFPRI's multicountry research program on rural financial policies for food security of the poor is to identify policies and institutional arrangements that help the poor integrate themselves into sustainable savings and credit systems such that they have an increased capacity to invest, bear risk, and smooth consumption. The focus of the research on policy and program design and their effects on household investment and consumption requires field data collection at the institutional and household level. This paper presents the underlying conceptual framework and various methodological approaches that have been reviewed and tested by the team at IFPRI and at collaborating institutions. Methodologies are presented for analysis at the institutional level, mainly focusing on the determinants of the formation of financial institutions and the analysis of effects of program design on institutional conduct and performance, and at the household level, thereby addressing determinants of access to and participation in financial markets and related effects on household welfare.Food security Developing countries. ,Financial institutions. ,Households Economic aspects. ,

Food insecurity, poverty and agriculture: a concept paper

This paper argues for a twin-track approach to hunger and poverty reduction that combines measures to promote rural development through growth in agriculture and rural off-farm activities with measures to provide direct and immediate access to food for the most needy. The paper begins with an exposition of the concepts of food insecurity and poverty and shows that the majority of the hungry and poor in developing countries still live in rural areas. It then documents the substantial economic costs of hunger to show that direct action against hunger can itself contribute to poverty reduction. It goes on to argue that if the income from agricultural growth is spent locally and promotes growth in rural off-farm activities, this can have a strong impact on the incomes of the poor. Evidence is presented to substantiate this argument. The paper concludes by discussing the implications of the twin-track approach for anti poverty strategies