Download El Salvador: Rural Development Study (World Bank Country by World Bank PDF
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Even if El Salvador has recorded amazing total monetary progress within the Nineteen Nineties, in this interval, agricultural progress has lagged significantly lower than the remainder of the economic system, which increases matters concerning the long-run ability of the sphere to elevate earning and employment in rural components and give a contribution to total development. the most targets of this area assessment are twofold: to advance a technique to revitalize the rural zone and become aware of its complete capability for effective and sustainable development through improving competitiveness; and to offer the most findings of the research of rural poverty and advance its implications for the layout of a technique for poverty relief.
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Additional info for El Salvador: Rural Development Study (World Bank Country Study)
Such a strategy should include: (i) removal of (indirect) barriers to entry to attract fresh capital and entrepreneurship into marketing, processing and distribution; (ii) removal of institutional constraints for the financing of storage activities; (iii) the development of warrant mechanisms and tradable warehouse receipts as collateral for credit during harvest time; (iv) improvements in marketing infrastructure and information flows, (v) increased competition in order to reduce the very high processing costs (slaughter, processing and distribution) in the beef industry; and (vi) modern rules for standardization and classification in the various commodity markets.
Goals should be set over the medium to long term, and for the relative contribution of both the private and the public sectors. 5% of AGDP be set for total research expenditures to be reached over a five-year period. Reform of the extension system. It is recommended that the publicly-funded extension system should be targeted to serve exclusively the small farmers, and that the delivery of the extension system could be transferred to private agents and NGOs, under a system in which CENTA retains a critical role for: (i) registry of qualified extension agents under the publicly-funded system; (ii) determining general guidelines for the operation of the system; and (iii) monitoring and supervising implementation.
The specific recommendations on these important policies are discussed below. The potential for a significant sector response exists in El Salvador today. Ultimately, this response will depend on the willingness of private agents to invest significantly more in the sector, and on the capacity of the Government to provide the key public goods essential for agricultural development. Security of property rights, better infrastructure, and higher levels of human capital appear to be the most important ingredients to stimulate greater private investment.