This report demonstrates that financial cooperatives can be sustainable providers of financial services in rural areas and development assistance needs to consider supporting them as a means to enhance access to rural finance. It does not suggest that financial cooperatives are the only providers or the preferred channel in all circumstances. For financial cooperatives to function as sustainable institutions, governments need to provide an enabling environment, not exercise excessive control that restricts growth and consolidation, and not use them as channels to provide subsidized credit.

This report presents an update on the economic challenges facing Ethiopia with a focus on the shared goal of accelerating equitable growth. The starting point is the Government's own Plan for Accelerated and Sustained Development to End Poverty (PASDEP), which is in the process of finalization, and is designed to cover the period 2005-2010.

This report summarizes and consolidates the findings of three Bank studies on poverty issues in Mexico, written as part of the second phase of this work: Urban Poverty, Rural Poverty, and Social Protection. It also expands on how Mexico will seek to use social protection policy as a vehicle for redistribution. Discussed in Chapter 1, the state has a clear role in providing risk-pooling mechanisms where private insurance markets fail (e.g., old age and health insurance), but the role of social protection policy in promoting redistribution is more an issue of national choice.

This report presents the impact and lessons learned from the Andhra Pradesh Drought Adaptation Initiative (APDAI). The APDAI was implemented as a package of pilot activities in two dryland districts in Andhra Pradesh (Anantapur and Mahbubnagar) with the aim of developing and testing approaches for natural resource-based economic activities to better respond to current climate variability and long-term consequences of climate change. The report discusses how innovations are being scaled up through integration into regular government programs for greater outreach.

The report builds on the 'towards a vision for agricultural innovation in Chile in 2030' report and is further based on a series of background papers and a consultation process that took place between December 2010 and May 2011. The current study is the third in a series of three that were agreed between the Government of Chile and the World Bank to support the development of a long-term agricultural innovation strategy. The first paper reviewed the functioning of the three main public technological institutes and recommended how their performance can be improved.

Market access has been identified as one of the foremost factors influencing the performance of small-scale producers in developing countries, and in particular least-developed countries. Smallholder access to markets for higher-value or differentiated agricultural and food products (hereafter HVAF) is recognized as a vital opportunity to enhance and diversify the livelihoods of lower-income farm households and reduce rural poverty more generally (World Bank 2007a).

Over the past 25 years, Uganda has experienced sustained economic growth, supported by a prudent macroeconomic framework and propelled by consistent policy reforms. Annual Gross Domestic Product (GDP) growth averaged 7.4 percent in the 2000s, compared with 6.5 in the 1990s. Economic growth has enabled substantial poverty reduction, with the proportion of people living in poverty more than halving from 56 percent in the 1992 to 23.3 percent in 2009. However, welfare improvements have not been shared equally; there is increasing urban rural inequality and inequality between regions.

Agriculture remains fundamental for Nicaragua from both a macroeconomic and social view. It is the largest sector of the Nicaraguan economy, and it remains the single biggest employer with around 30 percent of the labor force and including processed foods, like meat and sugar, agriculture accounts for around 40 percent of total exports value. Nicaragua appears to be gradually losing competitive edge of some of its key agricultural exports within the most important export markets.

This country note briefly summarizes information relevant to both climate change and agriculture in Ecuador, with focus on policy developments (including action plans and programs) and institutional make-up. Like most countries in Latin America, Ecuador has submitted one national communication to the United Nations Framework Convention on Climate Change (UNFCCC) with a second one under preparation. Land use change and forestry are the largest contributors to greenhouse gases (GHG) emissions in the country.

Despite myriad challenges, Kenya has emerged in recent years as one of Africa’s frontier economies, with headline growth in the most recent decade propelling the country toward middle-income status. Less well understood is how risk dynamics associated with production, markets, and policy adversely impact sector performance, in terms of both influencing ex ante decision making among farmers, traders, and other sector stakeholders and causing ex post losses to crops, livestock, and incomes - destabilizing livelihoods and jeopardizing the country’s food security.