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Journal of Microfinance / ESR Review

Abstract

This paper analyzes the relationship between financial services provided by different agents, the adoption of agroforestry systems, and the implications for food security and sustainable soil management. Attention is focussed on the role of rural finance in reducing risk and stabilizing household income and yields. We conclude that credit provision performs critical functions for reinforcing the resilience of rural livelihoods in less-favored areas. Rural development programs in the Occidental region of Honduras have been rather reluctant to provide rural financial services. Unfavorable agroclimatic conditions and the scarcity of infrastructure lead to extreme poverty. The local economy is fairly dynamic due to the availability of nonfarm income sources and crossborder trade. Within the framework of the FAO Lempira-Sur program, provision of rural credit and savings services created the conditions for adopting the Quezungual agroforestry system. This innovation contributes to higher and

Biography

Ruerd Ruben is Associate Professor of Development Economics, Wageningen University, Department of Social Sciences.; Lunc Clerx is a researcher and consultant with the Centre for Rural Development Research, Free University Amsterdam.

Section

Articles

Journal Title

Journal of Microfinance

Issue and Volume

5-2

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