Title Page

Copyright Page

Table of Contents

Summary

1: Introduction

1.1: Background

1.2: Layout of the Paper

2: Small Producer Support and the Emergence of Minimalist Credit

3: The Effectiveness and Impact of Minimalist Credit: A Review of the Evidence

3.1: Credit and Growth

3.2: Credit and Poverty Alleviation

3.3: A Lack of Innovation

3.4: The Predominance of Trading and Processing in Lenders' Portfolios

4: The Role of Business Development Services in Fostering Innovation

4.1: Market Saturation

4.2: Other Constraints

4.3: The Key Role of Technology: The Case of the Green Revolution

4.4: Liberalization and the Growth of Market Opportunities for Small Producers

4.5: Summary

5: The Case Studies

5.1: Credit Plus Programmes

5.1.1: BRAC's Rural Development and Credit Programme – Assistance to Poultry Raisers, Bangladesh

5.1.2: Tinytech Oil Mills, Zimbabwe

5.1.3: Support to Alpaca Farmers and Fibre Processors, Bolivia

5.1.4: Rural Enterprise Development Services (REDS), Sarvodaya/ITDG, Sri Lanka

5.2: Training

5.2.1: Training Vouchers Scheme for Microenterprises, Paraguay

5.3: Technology Development and Dissemination

5.3.1: Technoserve – Assistance to Palm Oil Processors, Ghana

5.3.2: Dissemination of the Ceramic Jiko, Kenya

5.3.3: Treadle Pump Dissemination, Bangladesh and Senegal

5.4: Networking and Support to Associations

5.4.1: The FIT Programme, Kenya

5.4.2: Assistance to Small Enterprise Associations in Ceara State, Brazil

5.4.3: The Institute of Socio-economic and Technological Research (INSOTEC), Ecuador

5.4.4: Proyectos de Fomento, Chile

5.5: Summary

6: Factors underlying High Impact and Cost-Effectiveness in Service Delivery to Small Producers

6.1: Achievement of Scale of Operation

6.1.1: Subsector Approach

6.1.2: Working Through Subsectoral Nodal Points

6.1.3: Promotion of Subcontracting and State Procurement

6.1.4: Promotion of Programme Replication

6.2: Greater Role of Market Mechanisms

6.2.1: Using Existing Production and Marketing Channels

6.2.2: Promoting Competition Between the Providers of Business Development Services

6.2.3: Aiming at Full Financial Sustainability for the Institutions Created by Projects

6.2.4: Small Producers Pay for Services

6.3: Facilitative Role of the State

6.4: Enhanced Exposure of Small Producers to the Outside World

6.5: Summary

7: The Way Forward

7.1: Maximizing Synergies between Financial and Business Development Services

7.2: Building on Recent Market-Driven Developments

7.2.1: Share the Risks of Motivation

7.2.2: Promote the Acquisition of Uncodified Knowledge

7.2.3: Experiment with Clusters and Associations

7.2.4: Put Decisions on Service Provision into the Hands of the Clients

7.2.5: Make the Revenue of Support Agencies Dependent on the Performance of their Clients

7.3: Improving Impact Monitoring and Assessment

7.4: Developing Strategies for Those Areas Where Market Mechanisms are Less Effective

7.5: Re–examining Questions of Sustainability and Subsidy

7.6: Conclusion

Bibliography