Cesar Del Pozo Brasilia, September 10th – 11th 2014 The impact of linking conditional cash transfers to agricultural credit on productive assets accumulation of rural households in Peru Social protection, entrepreneurship and labor market activation; International Seminar and Policy Forum.
This presentation is part of the programme of the International Seminar "Social Protection, Entrepreneurship and Labour Market Activation: Evidence for Better Policies", organized by the International Policy Centre for Inclusive Growth (IPC-IG/UNDP) together with Canada’s International Development Research Centre (IDRC) and the Colombian Think Tank Fedesarrollo held on September 10-11 at the Ipea Auditorium in Brasilia.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Cesar Del Pozo
Brasilia, September 10th – 11th 2014
The impact of linking conditional cash transfers
to agricultural credit on productive assets
accumulation of rural households in Peru
Social protection, entrepreneurship and labor market activation; International Seminar and Policy Forum.
CCT´s can have effects on agricultural outcomes (Todd et al. 2010; Gertler et al.
2006); CCT´s can reduce liquity constraints, CCT´s are a relevant, stable and
regular source of non-labor income, CCT´s can serves as a form of colateral for
credit.
Credit can increase income- generating activities and can improve assets position
of poor households (Karlan et al., 2007: Banerjee et al., 2009; Dong et al., 2010).
• Can CCT´s increase the stock of productive assets of rural and poor
households in Peru?
• Can the linking of CCT´s to agricultural credit improve assets position of rural
and poor households in Peru?
• Wich is the magnitude of these impacts?
• The linking of CCT´s to agricultural credit is a valid public policy option to
promote rural development?
Motivation and Research questions
Programa Juntos: relevant policy instrument to poverty alleviation in Peru:
• Start in 2005
• Operating at national level, mainly in rural areas
• Covers around 700000 households
• Fixed transfers UDS 71 bimonthly for at least 4 year.
• Conditionals: use of health services, school asistance.
• Targeting mechanism poor distritcs and poor households.
Agricultural credit
• Lack access to credit by rural households: 8% of total rural producers has credit
• Several types of credit lenders: informal, private banks, public bank (Agrobanco),
Microfinance Institutions
• Microfinace Institutions are the most relevant credit provider (66%)
Context background
• Juntos’ was not randomly assigned
• Credit access is a endogenous decision of households
• Programa Juntos is not formarly linked with any credit program at
national level
• The linking of CCT´s to agricultural credit is based on own decisions
of rural households.
• In households surveys does not exist enough information about
productive assets or agricultural credit.
• Census data is available.
Methodology: empirical challenges
Data:
• Agricultural Census: 1994 and 2012
• Around 2 million farming households.
Dependent variables:
• Agricultural assets: cultivated, land, rrrigated land, rate of cultivated land over total
land, rate of irrigated land over cultivated land, accumulation of productive
equipment, productive infraestructure.
• Livestock assets: number of cows, number of sheeps, small animals (guinea pigs
«cuyes»), poultry.
Independent variables:
• Household belong to CCTP in Peru: Programa Juntos.
• Household has agricultural credit by type of credit lender.
• Socioeconomics and geographical characteristics at district and household level.