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Farmer Training Promoting Sustainable Agriculture in Micronesia

sustainable agriculture in MicronesiaThe Federated States of Micronesia is comprised of more than 600 islands in the western Pacific ocean, broken down into four nation-states: Pohnpei, Kosrae, Chuuk and Yap. In recent years, the main focus for the government has been to foster sustainable agriculture in Micronesia, for the sake of farmers and the Micronesian economy.

Agriculture is a very large part of the Micronesian economy, and the majority of its economic activity revolves around subsistence agriculture and fishing, some of the country’s main crops including breadfruit, banana, taro and yams, its main exports being fish, black pepper and betel nut.

However, despite the fruitfulness and diversity of the Micronesian food supply, local communities have little opportunities to purchase fresh produce, because the majority of produce available in Micronesia is imported and expensive. The truth is that Micronesia can improve its agricultural environment by taking advantage of adequate resources and skilled farmers to improve the situation.

Virendra Verma, a researcher and faculty member at College of Micronesia – FSM, brought up key issues surrounding sustainable agriculture in Micronesia approximately nine years ago. In his research, his most prominent suggestion was finding more effective ways for farmers to raise livestock and grow food without wasting resources. He believed the best way to do this would be to train local farmers on how to effectively use sustainable and integrated agricultural systems.

In 2009, Dr. Virendra proposed the Western SARE project On-Farm Implementation and Demonstration of Integrated Sustainable Agriculture and Livestock Production Systems for Small-Scale Farmers in Micronesia, an intricate, hands-on plan that uses local resources to demonstrate integrated farming systems involving swine and crop production.

Some specific objectives of the project are as follows:

  1. To develop cropping systems for multipurpose crops in order to maximize sustainable production.
  2. To develop swine production systems based on local resources.
  3. To develop easy techniques for using various components of crops for many purposes, such as food and nutrients for plants.  
  4. To educate and train farmers the necessary components of improving and carrying out sustainable agriculture in Micronesia.  

In the proposal year, this project was awarded $38,220 and approved by Sustainable Agriculture Research and Education (SARE). From 2009 to December 2011, Dr. Viendra’s plan proved to be active and successful, as it resolved many concerns within Micronesian agriculture.

The program held training for agricultural professionals that focused on key concerns within the scope of food security and family well-being. Activities in the training included presentations, hands-on activities, discussions and a variety of “field trips” that covered topics such as vegetable production, chicken farming and food processing. Additionally, workshops were taught covering a wide range of topics, also focusing on food security and sustainable measures.  

In total, 80 people attended training activities in Chuuk, Palau and Yap, and participation was nearly equal for males and females; 47 percent of the participants were male and 53 percent were female. Likewise, 13 percent of the program participants were agricultural extension agents and 23 percent were farmers. This diverse turnout and the information relayed through the training made this program widely successful and beneficial in terms of improving sustainable agriculture in Micronesia.

The training, workshops and presentations that shaped this program were crucial in increasing the local population’s awareness regarding the importance of implementing effective and sustainable agricultural production. Due to the training, farmers are now able to make better use of their crops, and they are able to produce at higher rates, both things that have the power to improve the Micronesian economy in the coming years.  

– Alexandra Dennis

Photo: Flickr

Farmers Gain New Options for Credit Access in Burundi

credit access in Burundi

Burundi is a resource-deficient country that has been struggling to emerge from years of civil war. Underdeveloped in the manufacturing sector with the agriculture area accounting for roughly 40 percent of its GDP and employing over 90 percent of the population, the large majority of Burundians rely on agriculture to make a living. In order for the people of Burundi to grow income-generating businesses in the agricultural sector, the demand for financial assistance must be able to meet the supply. Poverty among the population has limited the capacity for credit access in Burundi.

Being able to obtain a loan at banks in Burundi is not easy; Burundi ranks 129th out of 137 economies in the 2017-18 Global Competitiveness Index compiled by the World Economic Forum. As a result of this difficulty, most entrepreneurs turn to loan sharks.

Traditional banking services are not sturdy or large enough to serve the population’s needs in building assets and establishing property. Retail and corporate banking is at a very early stage of development and many depend on microcredit or informal lending for credit access in Burundi.

Burundian farmers rely on agriculture for their livelihoods, and One Acre Fund (OAF) has experienced an immense demand from these farmers for the services they offer. One Acre Fund is a nonprofit that offers credit and guidance in order to assist small landowners in growing their way out of famine and help them build thriving futures. Burundi is just one out of the many developing countries they serve.

OAF offers a complete package of services, utilizing a four-step market-based strategy that allows the organization to remain financially sustainable and grow to touch the lives of more farmers each year.

  1. Asset-Based Loans
    Financing for quality seeds and fertilizer is given to farmers on a credit basis, and they are offered a flexible repayment plan that allows them to repay their loans in any amount throughout the term.
  2. Delivery
    Farm inputs are delivered to areas that are within walking distance of all the farmers that OAF serves.
  3. Training
    Trained professionals offer the farmers guidance on advanced agricultural techniques throughout the entire season.
  4. Market Facilitation
    Solutions for storing crops and techniques on monitoring the constant variations of the market are taught to the farmers so that they are able to time the sale of their crops in order to maximize profits.

This strategy has allowed for thousands of families to yield higher-quality crops without spending additional funds. With Burundi being one of the poorest countries globally, farmers that are usually starting at a low-profit baseline have seen large improvements in their earnings since being involved with One Acre Fund. Subsequently, retention of farmers and loan repayment rates in Burundi are some of the highest of all the countries OAF serves. By providing all of these services in one, One Acre Fund allows farmers a useful way to get farming help and credit access in Burundi.

– Zainab Adebayo

Photo: Flickr

Expansion of Credit Access in Vietnam Vital for Small Businesses

Credit Access in VietnamSmall and medium-sized enterprises (SMEs) play a very important role in Vietnam’s economy. They produce approximately 40 percent of the country’s GDP and provide employment to approximately 50 percent of workers. Although a vital part of the economy, many SMEs struggle with credit access in Vietnam and are unable to invest in loans that will aid them with their finances.

Access to loans is important to SMEs, especially those just starting up, and many of them need this option to survive in the market. Many SMEs require money from loans to invest in new machinery and technology to become more efficient, stay competitive and make a profit.

SMEs struggle to stay competitive not only because of credit access in Vietnam, but also because of well-funded, larger businesses. This is where one of the issues with access to credit comes into play. Large enterprises are not only preferred by foreign investors, but also by local banks. With a better guarantee to make a profit, banks prefer providing loans to these steadier businesses instead, believing that most SMEs are too much of a risk.

It may come as a surprise that approximately 70 percent of SMEs technically have credit access in Vietnam. The issue arises in the fact that many of the businesses taking out these loans face other difficulties in the access of these funds, and most would prefer not to. SMEs often pay up to 10 percent interest or even higher on loans, while larger enterprises only pay around 5 percent at the highest. Banks also tend to require fixed collateral for the loan, such as land.

Another issue regarding credit access is that of gender. Traditional gender roles in Vietnam often affect a bank’s decision in providing a loan, worrying that women will make less profit than a man would, or simply denying access because they are female. In addition, most females do not own land to provide the fixed collateral. This is an obstacle for females in large businesses, but especially for those in SMEs.

To combat this, some peer to peer platforms, crowdfunding for businesses by investors, have appeared in Vietnam. Although this gets around stricter banks, allowing loans to be given to what the bank would consider high-risk businesses as well as more equal opportunities for both male and female business owners, it still is not enough. Not only do the current platforms not have enough willing investors providing loans to SMEs, but they also still struggle to compete with large enterprises that are well funded by the banks.

There is plenty of potential for SMEs to help improve the country’s economy and GDP, but credit access in Vietnam is preventing this from happening. In the future, the government may possibly enforce better rules to allow more SMEs to flourish, but until then, investment is one of the few ways SMEs can be funded with loans. The country simply needs more interested investors, both local and foreign.

– Keegan Struble

Photo: Flickr

Better Credit Access in South Africa to Boost Economic Growth

Credit Access in South AfricaBecause poverty has hindered a large portion of South African households from getting access to formal credit sources, informal credit like loan sharks and mashonisa loans has prevailed. Economists believe that better credit access in South Africa provided by financial institutions might help to boost the economy as well as alleviate poverty.

Previous research from the University of Cape Town had already shown the strong relationship between economic growth and credit expansion in South Africa. Recently, economist Roelof Botha from the Gordon Institute of Business Science reiterated the idea that credit expansion – especially by financial institutions lending money to unsecured borrowers – could invigorate the struggling economy.

Though South Africa is experiencing a declining economy, the household debt to income ratio has dropped consistently, from 87.8 percent in 2008 to 73.2 percent in 2017. This ratio appears to be exceptionally low compared to South Africa’s trading partners like Australia, which exceeded 200 percent in 2017 despite its growing economy.

Notwithstanding a high percentage of homeownership (more than 54 percent), Botha argues that the low value of the homes – which disqualifies them as collateral – has become “unnecessary obstacles” for the households to obtain credit from formal channels.

Lowering the bar for obtaining credit allows consumers to purchase more goods or even to start small businesses, which are both beneficial to the overall economy. Furthermore, research from Innovations for Poverty Action shows that better access to credit could not only increase the quality of life of the borrowers, but also give lenders more profit.

In an article published by Boston Consulting Group in April 2017, researchers claimed that though the percentage of South African adults who have borrowed from commercial banks rests at a modest 12 percent, informal credit accounts for a greater portion of the entire credit market.

Compared to formal channels, debts from informal channels are more difficult to regulate and might exacerbate the financial situation of already unsecured borrowers due to the sky-high interest rate.

In addition, the South African informal debit market bears an alarming default rate of an estimated 12 percent – much higher than countries that are risk-averse like China (1 percent) and Germany (2 percent).

The Reserve Bank has already started to lower its repo rate and plans to reduce the rate further to increase credit access in South Africa in 2018, expecting better economic growth. The steady inflation rate, averaging 4.9 percent through most of 2017, also provides households with better credit affordability.

From a long-term perspective, Botha said, the number of households with a buying power of R120,000 or higher per year experienced a dramatic increase from 200,000 in 2002 to 2.7 million in 2016, making the average real growth 15 percent, which is much greater than the average economic growth rate. Therefore, credit expansion should have the potential to further this growth.

Expanding credit access in South Africa provided by regulated financial institutions has the potential to increase purchase power, lower unemployment rates and eventually boost economic growth while removing the financial barriers imposed by unregulated informal credit, helping people to exit poverty.

– Chaorong Wang

Photo: Flickr

Increasing Employment Opportunities in Serbia

Increasing Employment Opportunities in SerbiaUnemployment remains a growing concern for many Serbians. The country’s statistical office reports that Serbia’s unemployment rate rose to 19 percent in June 2016. The Belgrade region had the highest unemployment rate of 20.5 percent, and southern and eastern Serbia had an unemployment rate of 20.2 percent. However, work is being done to increase employment opportunities in Serbia.

New Jobs Opening in Serbia

In March 2017, Prime Minister Aleksandar Vucic attended the signing of an agreement with the U.S. company NCR that plans to create 1,500 new jobs in Serbia. NCR will have more than 3,600 permanent employees in Serbia once the new jobs are created. This will be a significant increase from the 300 employees that NCR hired when the company arrived in Serbia in 2011.

In September 2017, Turkish investors expressed interest in opening 3,500 jobs in southern Serbia within the next three years. Zoran Djordjevic, Serbia’s labor minister, says talks will be held with the investors to explore all potential opportunities for cooperation. Djordjevic also presented the investors with Serbia’s new laws that will have an impact on their business activities.

Investing in Serbia’s Youth

The Center for Advanced Economic Studies presented a study entitled “Mapping Barriers to Youth Entrepreneurship in Serbia” to the Serbian Chamber of Commerce (SCC) at a panel discussion on April 25, 2017. Marko Čadež, the SCC president, mentioned that entrepreneurship is a key solution for increasing employment opportunities in Serbia. Čadež added that the SCC is continuously working to encourage and support business start-ups.

Axel Dittmann, Serbia’s German ambassador, noted that youth unemployment is an important segment to be addressed. Dittmann also said that Serbia’s youth have the greatest potential to boost the country’s economic growth. Snežana Klašnja, Serbia’s assistant minister of youth, says that while only 817 young Serbians have been employed through her ministry’s initiatives, there is still much work to be done.

Serbia’s Increasing Employment Rate

In October 2017, there were 622,000 unemployed people in Serbia, a slight decrease from the 55,000 additional Serbians unemployed in 2016. “We expect for the annual unemployment rate to further drop,” says Zoran Martinovic, the director of the National Employment Office. Martinovic also revealed that 206,000 Serbians found employment in the first nine months of 2017.

Martinovic added that IT professionals, engineers and financial experts are most in demand for Serbia. A few unemployed Serbians expressed interest to participate in retraining programs as well. Serbia’s government is implementing a retraining program for 900 IT professionals who are preparing for more complex IT jobs.

ICT Hub’s Success in Serbia

Decreasing job opportunities have also caused many Serbians to leave their country. However, a program known as ICT Hub is working to increase employment opportunities in Serbia. Launched as part of a partnership with USAID in 2014, ICT Hub mentors Serbia’s entrepreneurs, helping them avoid the risks and costs of pursuing innovative ideas.

“Many of my friends left Serbia, but I believe one can succeed here just as anywhere else,” says Uroš Mijalković, a Serbian entrepreneur who managed to create a mobile gaming application with ICT Hub’s help. Mijalković’s gaming application Karate DO is now played by 12,000 people in 162 countries. “So far, 25 businesses with market potential have gotten off the ground at the ITC Hub,” says Kosta Andri, the ICT Hub’s director.

While these efforts are helping Serbian citizens find more job opportunities, there is still much work to be done. The growing rate of Serbians leaving their country can still decrease based on the help of Serbia’s government, ITC Hub and other entities. For now, the main goal of these projects and efforts is to increase employment opportunities in Serbia.

– Rhondjé Singh Tanwar

Photo: Flickr

Sustainable Agriculture in Burkina Faso Improves Steadily

sustainable agriculture in Burkina Faso

Burkina Faso is a small, landlocked country located in the Sahel region of West Africa and is home to approximately 20.1 million people, 90 percent of whom rely on subsistence farming. Over the past several decades, rapid population growth has caused farmers to expand their cropland, contributing to the overfarming and overgrazing of much of Burkina Faso’s land. Ultimately, land overuse and unsustainable farming practices in conjunction with the effects of climate change has led to widespread land degradation.

Though much of the country’s land had been reduced to desert due to human action and ecological changes, the people have learned to turn conventionally unfruitful areas into arable land. Today, through soil and water conservation, crop diversification and community initiatives, sustainable agriculture in Burkina Faso is spurring economic development and food security for future generations.

 

Reversing the Ecological Damage

To reverse the “vicious agro-ecological cycle” that the population found themselves in, as the Overseas Development Institute (ODI) describes it, Burkinabe farmers began adopting three sustainable practices to conserve soil and water: zaï, contour stone bunds and demi-lunes.

Zaï is a technique that involves digging small pits to reverse desertification. The pits capture rainfall, manure and organic waste runoff, increasing soil fertility in the otherwise barren land. Contour stone bunds are stone barriers built around and throughout fields along natural contours trap rainfall and prevent soil erosion. Demi-lunes are semi-circle shaped ditches that are lined with cuttings to collect rainwater, nurturing crops planted nearby.

Through these practices and more, sustainable agriculture in Burkina Faso has made farmlands more resistant to drought and effects related to climate change. The restoration of degraded land has also contributed to increased agricultural productivity, according to the ODI.

 

Projects for Sustainable Agriculture in Burkina Faso

The Burkinabe economy is commodity-based, with cotton being the primary agricultural export. In order to help Burkina Faso diversify its crop exports and improve economic activity, organizations from the global community collaborated with the country on several initiatives. To promote sustainable agriculture in Burkina Faso, the Food and Agriculture Organization of the United Nations (FAO) worked with Burkinabe farmers in five villages between 2002 to 2007 to implement the Integrated Production Systems/Priority Areas for Interdisciplinary Action (PRODS/PAIA) project.

The FAO designed the PRODS/PAIA project to improve productivity and crop diversification by applying conservation agriculture techniques, which include minimal soil disturbance via a strict no-tilling policy, crop diversification, crop rotation and mulch building using residual plant materials and cover crops. The FAO shared these techniques through a social learning process called Farmer Field Schools. Farmers applied conservation agriculture practices, along with pest and production management techniques, at benchmark sites where they discovered improved yields upon experimentation.

 

Positive Results for a Positive Future

Between the conservation agriculture and Farmer Field Schools initiatives, the PRODS/PAIA project achieved beneficial outcomes in each participating village. Highlights included higher yields related to crop rotation, increased farm incomes and greater competitiveness in domestic markets.

Shortly thereafter, The World Bank embarked on the Agriculture Diversification and Market Development Project (PAFASP) between 2006 and 2017. By providing grants, supporting infrastructure and promoting sustainable agriculture in Burkina Faso, the PAFASP has resulted in the increased agricultural exports and rural incomes of the Burkinabe people.

In light of the progress sustainable agriculture had made in the country, Burkina Faso adopted a National Policy of Sustainable Development, which espouses a commitment to environmental preservation and sustainable practices as a vehicle to accelerated economic growth and improved standards of living. Though there is still work to be done, Burkina Faso is on its way to achieving sustainability, marked by a competitive agricultural market, the conservation of natural resources and lasting food security for its people.

– Chantel Baul

Photo: Flickr

Sustainable Agriculture in Rwanda Needs Improvement

Sustainable Agriculture in RwandaAgriculture is a key sector of the Rwandan economy and has been growing in the post-genocide reconstruction era. Over 50 percent of the total surface of the country, approximately 1.4 million hectares, is arable land.

Traditionally though, Rwanda has focused on subsistence agriculture. It is one of the Vision 2020 goals for the sector to adapt and grow, moving from a focus on subsistence to a focus on commercial production. This industry growth will also increase household incomes and reduce poverty by up to 50 percent in the next two decades.

 

Barriers to Growth

For the agricultural sector to grow to its full potential, it must be sustainable. However, there are currently many barriers to sustainable agriculture in Rwanda. These include soil erosion, population pressure and water pollution.

Crops such as cassava are grown all across Rwanda but are more likely to lead to soil erosion. This is exacerbated by frequent field turnover, meaning fields are not left fallow to replenish their nutrients in favor of using them immediately. This yields immediate crops but is not sustainable.

The land has also been degraded by population pressures in both rural and urban areas. More farmers are vying for arable land than the small country of Rwanda can handle. In addition, the fertilizers that some farmers use to protect and extend their crop yields are polluting the country’s water.

 

Sustainable Solutions

There are many solutions and initiatives that are promoting sustainable agriculture in Rwanda. Sustainable land use management is a key pillar of the Vision 2020 goals. In the Umutara region, a One Cow per Family program has been successful in improving income and nutrition for families by producing and selling milk, but also in providing manure that enhances crop production. In addition, limiting the number of cows per family has reduced overgrazing in the region.

The issue of soil nutrient replacement is being tackled by the government, which has paired with the private sector to subsidize and distribute fertilizer to farmers. It remains to be seen, however, how this increase in the use of fertilizer will impact pollution. The government also promotes techniques such as terracing, which makes more efficient use of the hilly landscape, agroforestry, zero-grazing zones and better irrigation systems to expand the arable land and improve sustainability.

 

Financing Sustainable Agriculture in Rwanda

Sustainable initiatives cost money, which is a barrier in itself in Rwanda. As a result, outside organizations have stepped in to help finance sustainable agriculture in Rwanda.

The Environmental Resources Management Foundation provided a grant through the Africa Development Promise to support a women’s cooperative in the Bugesera district. The women were subsistence farmers and were suffering from very low crop yields. The grant paid for the installation of a greenhouse with a year-round irrigation system.

Furthermore, the Food and Agriculture Organization (FAO) of the United Nations provides assistance in Rwanda centered on four areas: improving food security and nutrition, sustainably managing resources to increase productivity, private sector investment and collaboration/knowledge sharing.

Finally, the Urwego Opportunity Bank is a Rwandan bank that issues both individual and cooperative loans to farmers. It evaluates the needs of the farmers so it does not issue loans above the amount needed, and it requires proof of the contract with buyers to purchase the harvest. Then it issues loans tailored to farmers’ needs. These loans have financed maize, rice and potato cultivation, cow and milk machine acquisition and transportation to local markets.

As Rwanda’s economy continues to grow, the key may be agriculture, and the key to leveraging agriculture is sustainability. Continued efforts toward improving sustainable agriculture in Rwanda are sure to lead to further economic development in the African nation.

– Olivia Bradley

Photo: Flickr

Starting from Scratch: Sustainable Agriculture in Nauru

Sustainable Agriculture in NauruThe small island of Nauru was once one of the world’s wealthiest nations per capita, during its phosphorus mining boom in the 20th century. But while the island was cashing in on its phosphate deposits, it was also creating a catastrophic environmental and agricultural legacy that would last for years.

Unchecked mining left an excessively jagged landscape that was almost useless for plant or food growth. With only 20 percent of land suitable for agricultural use, according to the Commonwealth Network, sustainable agriculture in Nauru became a distant dream. Since the end of the mining boom, the island has made slow progress towards rehabilitating the island for environmental and agricultural purposes. To further these efforts, in 1993 the Nauru Rehabilitation Corporation provided funding for multiple land rehabilitation projects, only of which has been successful thus far.

Due to the lack of any sustainable agriculture in Nauru, 90 percent of the island’s food is imported. Nauru’s strained financial situation makes the high costs of imported food an even greater burden. To make up for these high costs, Nauru imports cheaper, processed food, creating a severe shortage of healthy food in the diets of Nauru’s inhabitants. Increased consumption of unhealthy food led to obesity, in turn causing a rise in non-communicable diseases, threatening the health and lives of the people.

Efforts towards creating sustainable agriculture in Nauru are focused on the essential aspects: energy, water and small crops. Moqua Well, Nauru’s only underground lake, is being used for a solar-powered purification system to deliver drinkable water to the island’s inhabitants.

Buada Lagoon, Nauru’s only surface lake, is surrounded by small crops and domestic gardens, which constitute a large part of the Food and Agriculture Organization’s (FAO) plan for creating sustainable agriculture in Nauru. These provide the people with small and viable crops, mainly coconuts. Providing food security has proved a challenge; many of the agricultural and farming practices have fallen out of use, leaving the island’s current farmers ignorant of the best systems for crop cultivation.

The FAO provided training for farmers after an insect infestation caused a large decline in coconut production, demonstrating the proper methods for biological control and insect identification. Over 75 percent of Nauruan farmers used pamphlets found in the island’s resource center. Educating the farmers in these matters is the first and most important step towards creating food security and sustainable agriculture in Nauru.

– Kayla Rafkin

Photo: Flickr

Sustainable Agriculture in Suriname Working to Improve Yields

Sustainable Agriculture in SurinameThe sector for sustainable agriculture in Suriname is uniquely poised to take advantage of a highly valuable market, eschewing new and higher value organic crops while intensifying the long-held tradition of rice farming. In 2012, agriculture constituted only 9 percent of Suriname’s GDP, decreasing from 15 percent in the 1990s.

The country’s most important crops, rice and bananas, have become nearly stagnant in terms of yield and are facing major overseas competition, causing high export and transportation costs. Rice, as the essential backbone of sustainable agriculture in Suriname, is a focus of the Anne van Dijk Rice Research Institute (ADRON). In addition to rice production, sustainable agriculture in Suriname can increase its value significantly by developing a framework for organic farms.

Rice Production

Through ADRON, the Ministry of Agriculture developed a system for intensifying rice production, increasing it from 4.1 to 4.7 tons per hectare at one point. However, ADRON’s research on seed breeding and crop productivity only got them so far. Small farmers lack proper education and knowledge of the most effective rice production practices, resulting in only 400 hectares of rice being planted in 2007, as opposed to the expected 1000 hectares.

ADRON has since supported the Seed Growers Association, an extension program for the support of small farmers and providing them with the technology they need to create sustainable agriculture in Suriname. According to the International Institute for Sustainability, world rice production must increase 50 percent by 2025 to accommodate average consumption per capita. Since 2009, rice production has shown an upward trend of above 200,000 tons per year, but ADRON is looking to push it even further with the following programs:

  • Plant breeding program: breeding a seed with higher yields and better quality when cooked that will flower at a specific time after it is planted.
  • Crop management program: researching the potential results of planting rice at higher elevations, as well as soil, weed and pest management.
  • Post-harvest processing program: optimizing waste management and researching the cooking quality of different rice varieties.
  • Technology transfer program: reaching out to farmers and farmer field schools through mass media.
  • Rice seed production program: transferring rice produced in Suriname to a separate agency for continued research.

These five ADRON programs will provide the education and technology necessary for the expansion of rice production, as well as an assurance of rice quality that will survive rising competition in the world market.

Organic Farming

Organic farming has become a worldwide trend and highly dynamic market, particularly in Europe, and Suriname is going along with the trend. The Suriname Business Development Center and the United Nations Development Programme (UNDP) have funded multiple projects for boosting organic farming and sustainable agriculture in Suriname. With funding from the Global Environment Facility (GEF), UNDP created the GEF Small Grants Programme, allowing Suriname to begin instituting projects involving biodiversity, sustainable land management and non-timber forest products.

Institutions like the Centre for Agricultural Research provide a gateway to the national market for organic food, creating initiatives to capture national interest. Safe farming, an environmentally friendly initiative for the small-holder farmers, is one of many that uses fewer chemicals in their crops.

Sustainable agriculture in Suriname has become a nationwide focus, with support from the government, research institutions and local farmers. They have the means to succeed and they are taking advantage of it.

– Kayla Rafkin

Photo: Flickr

Credit Access in El Salvador Growing Among Rural Population

Credit Access in El SalvadorThe country of El Salvador is known for being the smallest and most densely populated country in Latin America. It has the twelfth-highest GDP in the Americas. A large portion of its economic growth comes from remittances.

Meanwhile, agriculture, which had fallen off in the 1990s, continues to play an important role in the economy as it employs 25 percent of the country’s labor force. Coffee and sugar, El Salvador’s main exports, account for a significant portion of the agricultural sector. But despite its comfortably high GDP, 32.7 percent of its citizens live in poverty.

A significant obstacle to alleviating poverty is limited credit access in El Salvador. In particular, while banking is common and easy to obtain in larger cities like San Salvador and Santa Ana, the poor, especially in rural areas, have the most difficulty. Of the 40 percent of the population with low income, only 6 percent have accounts at financial institutions. And while access has grown, most banks do not have branches outside of the major cities.

To combat this, in 2013 the World Bank funded and developed a program that, through technical assistance, supported the Salvadoran authorities in developing legal frameworks and financial services. The World Bank team provided a framework for financial correspondents (third parties such as grocery stores and pharmacies) that authorized them to provide basic financial services. As well, the World Bank provided feedback on models of regulation for mobile banking and electronic banking.

Through these efforts, the World Bank was able to legally enact a framework that allowed for those third-party groups to carry out basic financial services. And between December 2013 and May 2014, basic banking transactions through third parties totaled nearly US $45 million. By utilizing technical channels outside of banks themselves, the World Bank has been able to provide credit access in El Salvador for all its citizens.

And in 2010, the International Finance Corporation, which is a part of the World Bank, financed a $30 million project specifically for micro-financing. Based on remittance flow, which accounts for more than $2.8 billion of El Salvador’s GDP, this project will establish a new funding platform for Fedecredito, a cooperative of 55 El Salvador credit unions and banks. Through support from the World Bank, which will grow Fedecredito’s portfolio by up to 25 percent, Fedecredito hopes to use this new structure to give credit to over 30,000 micro-entrepreneurs.

Through these programs, credit access in El Salvador has improved, especially for the rural poor. As these projects continue and El Salvador gains more stability, hopefully, their citizens will have more economic freedom.

– Nick McGuire

Photo: Flickr