Colombia - Rural Finance : Access Issues, Challenges and Opportunities
The history of rural - mostly agricultural - finance in Colombia, is characterized by a system which channels benefits to limited numbers of beneficiaries, at the expense of the public sector, and the economy as a whole. A legacy of powerful agricu...
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| Format: | Other Rural Study |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/11/3044045/colombia-rural-finance-access-issues-challenges-opportunities http://hdl.handle.net/10986/14712 |
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okr-10986-147122021-04-23T14:03:17Z Colombia - Rural Finance : Access Issues, Challenges and Opportunities World Bank RURAL FINANCE ACCESS TO CREDIT RURAL POVERTY INEQUITY PUBLIC SECTOR AGRICULTURAL CREDIT MARKET FORCES MARKET SEGMENTATION AGRICULTURAL POLICIES LEGAL & REGULATORY FRAMEWORK JUDICIAL REFORM INSTITUTIONAL FRAMEWORK INSTITUTIONAL CAPACITY FINANCIAL SERVICES FINANCIAL INTERMEDIATION FINANCIAL INNOVATION REFORM POLICY DEVELOPMENT CREDIT INSTITUTIONS MICROFINANCE AGRICULTURE CREDIT REPORTING INSURANCE REGULATORY FRAMEWORK RURAL DEVELOPMENT SUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT UNIT TASK TEAM LEADER The history of rural - mostly agricultural - finance in Colombia, is characterized by a system which channels benefits to limited numbers of beneficiaries, at the expense of the public sector, and the economy as a whole. A legacy of powerful agricultural lobbies (coffee, livestock) has translated into sector-biased legislation, that established the "Sistema Nacional de Credito Agropecuario" (National Agricultural Credit System), and related institutions. Nonetheless, current agricultural policies send mixed signals in terms of the degree of protection vs. subjection to market forces producers can expect, thus preventing the development of a profitable, and competitive agriculture. Against this background, the advent of a new administration faced a rather dangerous policy juncture, as the pressure to tackle poverty in rural areas, coincides with severe fiscal, and public debt constraints. The Government however, has now the opportunity to build substantive reforms in the financial sector, enacted under previous regimes. The study found that access to financial services in rural Colombia is limited and segmented, whose causes are traced to inadequate services, lack of innovation in financial intermediation in rural areas, and, to an outdated model of public intervention in agricultural credit. Recommendations center on a re-direction of public interventions, aimed at substantially expanding institutional outreach, and financial services and quality in rural areas. Recommended reforms would exploit the existing private (including cooperative) and public retail institutional base, and, the skills and capabilities in the two main institutions, one playing as second-tier institution a strong development agency role, and the other as a lead innovator in rural microfinance. Also suggested is a substantial revision of the usury law, and reforms of the legal and judicial framework, for the use of moveable property as collateral. 2013-07-31T21:37:22Z 2013-07-31T21:37:22Z 2003-11 http://documents.worldbank.org/curated/en/2003/11/3044045/colombia-rural-finance-access-issues-challenges-opportunities http://hdl.handle.net/10986/14712 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Rural Study Economic & Sector Work Latin America & Caribbean Colombia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
RURAL FINANCE ACCESS TO CREDIT RURAL POVERTY INEQUITY PUBLIC SECTOR AGRICULTURAL CREDIT MARKET FORCES MARKET SEGMENTATION AGRICULTURAL POLICIES LEGAL & REGULATORY FRAMEWORK JUDICIAL REFORM INSTITUTIONAL FRAMEWORK INSTITUTIONAL CAPACITY FINANCIAL SERVICES FINANCIAL INTERMEDIATION FINANCIAL INNOVATION REFORM POLICY DEVELOPMENT CREDIT INSTITUTIONS MICROFINANCE AGRICULTURE CREDIT REPORTING INSURANCE REGULATORY FRAMEWORK RURAL DEVELOPMENT SUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT UNIT TASK TEAM LEADER |
| spellingShingle |
RURAL FINANCE ACCESS TO CREDIT RURAL POVERTY INEQUITY PUBLIC SECTOR AGRICULTURAL CREDIT MARKET FORCES MARKET SEGMENTATION AGRICULTURAL POLICIES LEGAL & REGULATORY FRAMEWORK JUDICIAL REFORM INSTITUTIONAL FRAMEWORK INSTITUTIONAL CAPACITY FINANCIAL SERVICES FINANCIAL INTERMEDIATION FINANCIAL INNOVATION REFORM POLICY DEVELOPMENT CREDIT INSTITUTIONS MICROFINANCE AGRICULTURE CREDIT REPORTING INSURANCE REGULATORY FRAMEWORK RURAL DEVELOPMENT SUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT UNIT TASK TEAM LEADER World Bank Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| geographic_facet |
Latin America & Caribbean Colombia |
| description |
The history of rural - mostly
agricultural - finance in Colombia, is characterized by a
system which channels benefits to limited numbers of
beneficiaries, at the expense of the public sector, and the
economy as a whole. A legacy of powerful agricultural
lobbies (coffee, livestock) has translated into
sector-biased legislation, that established the
"Sistema Nacional de Credito Agropecuario"
(National Agricultural Credit System), and related
institutions. Nonetheless, current agricultural policies
send mixed signals in terms of the degree of protection vs.
subjection to market forces producers can expect, thus
preventing the development of a profitable, and competitive
agriculture. Against this background, the advent of a new
administration faced a rather dangerous policy juncture, as
the pressure to tackle poverty in rural areas, coincides
with severe fiscal, and public debt constraints. The
Government however, has now the opportunity to build
substantive reforms in the financial sector, enacted under
previous regimes. The study found that access to financial
services in rural Colombia is limited and segmented, whose
causes are traced to inadequate services, lack of innovation
in financial intermediation in rural areas, and, to an
outdated model of public intervention in agricultural
credit. Recommendations center on a re-direction of public
interventions, aimed at substantially expanding
institutional outreach, and financial services and quality
in rural areas. Recommended reforms would exploit the
existing private (including cooperative) and public retail
institutional base, and, the skills and capabilities in the
two main institutions, one playing as second-tier
institution a strong development agency role, and the other
as a lead innovator in rural microfinance. Also suggested is
a substantial revision of the usury law, and reforms of the
legal and judicial framework, for the use of moveable
property as collateral. |
| format |
Economic & Sector Work :: Other Rural Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| title_short |
Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| title_full |
Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| title_fullStr |
Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| title_full_unstemmed |
Colombia - Rural Finance : Access Issues, Challenges and Opportunities |
| title_sort |
colombia - rural finance : access issues, challenges and opportunities |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/11/3044045/colombia-rural-finance-access-issues-challenges-opportunities http://hdl.handle.net/10986/14712 |
| _version_ |
1764428464728834048 |