Agriculture Reference
In-Depth Information
Loans and credits - Access for formal credit from banks is limited, and
only 14 per cent of the producers reported having received bank loans. The
remaining 86 per cent have not received any loan. Thirty-five per cent of all of
the farmers surveyed have received credit (credit being different from a loan).
For these farmers that have received credit, the main sources are stores that
sell agricultural products and fertilizer, and other small enterprises. The
principal reason for asking for financial assistance was to cover the input costs
of growing vegetables. Lack of access to credit restricts the growth of their
businesses and illustrates an important problem associated with smallholder
farming in urban areas.
Savings - There does not seem to be a very broad range of options for
saving money for the population living in Carapongo. Interviews revealed
there is no custom of formal saving (in banks, for instance). Some people
indicated that they save by keeping money safe at home or by purchasing
animals that will be sold later.
Social capital
Carapongo is made up of a population who are originally from various
regions and who grow different crops. For Durston (1999), common socio-
cultural elements such as outlooks and values, memory of historical events,
religion and myths, identity, rules of relationship, principles of reciprocity, as
well as the social phenomena of neighbourhood and friendship, comprise the
necessary precursors for the formation of social capital. He identified four
levels of analysis: the individual; closed small groups, where there is shared
experience and a high degree of trust; the wider community where there are
common interests and objectives; and external relationships and interactions.
After noting Durston's constructs, four categories of social capital in
Carapongo were identified: individuals; family or closed groups; community
groups; and 'exogenous' groups, such as local government:
1 Individual actors, especially community leaders, have access to networks and
contacts with other groups that permit them a greater control of information
and resources.
2 Family and/or closed groups have kinship ties and linkages that influence
their actions. This is especially true among those coming from rural areas
who share land and help new arrivals to establish their housing and
employment. Furthermore, in many cases it was discovered that activities
in the field are performed by the members of the family.
3 Community groups are an important source of social capital and include
organizations such as farmers' associations and groups that are initiated
with the purpose of defending property rights both of land and housing.
This research found that in some cases, the leadership of these groups was
not completely trusted. The leadership of the Water Users Association was
cited as more trustworthy than leadership of other groups.
4 Exogenous groups such as, for instance, local government are characterized
by very weak ties and a high degree of mistrust within the community. An
