By Ramón López, Alberto Valdés (eds.)
This publication offers clean perception into rural poverty in Latin the US. It attracts on six case reviews of contemporary rural loved ones surveys - for Chile, Colombia, El Salvador, Honduras, Paraguay, and Peru - and several other thematic stories studying land, labour, rural monetary markets, the environments, and deprived teams. spotting the heterogeneity in the rural financial system, the reports signify 3 very important teams - small farmers, landless farm employees, and rural non-farm employees - and supply quantitative and qualitative analyses of the determinants of family income.
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Additional resources for Rural Poverty in Latin America
Most studies have examined only simple correlations, which provide ambiguous results. Recent studies of the effect of land titling on farm productivity (López, 1996b, on Honduras; Carter and Olinto, 1996a, on Paraguay) have made a major contribution to this topic. In both Honduras and Paraguay, land titling has positive and signiﬁcant effects on farm income, and the collateral effect dominates the attached-investment demand effect. The results of both studies suggest that the rate of return on investment in titling programs is competitive with other investment alternatives, and that land titling is a good investment in Latin America.
One ﬁnal observation by Lanjouw conﬁrms that a relatively small proportion of rural enterprises received ﬁnancial assistance from formal sector ﬁnancial institutions, suggesting that such enterprises are largely ﬁnanced through personal savings. Chaves and Sánchez (Chapter 7), in their study on Mexico, show that nonfarm rural enterprises can expect to pay much higher interest rates than farmers. This could be attributed in part to the lack of collateral and in particular to their inability to use movable assets as such, because of regulations that speciﬁcally prohibit such collaterals.
Land tenure security In most of Latin America relatively few small and medium farmers have legal title to their land – less than 55 per cent of the farmers in Honduras, Paraguay and Colombia. Insecure property rights are an important source of production inefﬁciency, owing to the negative effect of that insecurity on the incentives to invest in capital that is attached to the land, and to credit constraints faced by farmers who lack titles for both formal and informal security of loans. , 1991), the subject has received much less attention in Latin America.