Читать книгу Promoting Investment in Agriculture for Increased Production and Productivity - Saifullah Syed - Страница 8

Investment in agriculture must be viewed in the wider economic context in which agricultural development occurs. In designing policies and programmes for promoting investment in agriculture it should be recognized that agricultural development depends on the simultaneous growth of agricultural production and the value chains to which it is linked. These value chains include a wide range of small- and large-scale activities that involve supplying farm inputs, processing, storing, distributing, wholesaling, retailing and exporting farm products. All these activities can be referred to collectively as ‘agro-industry’. When considering agricultural investment, it should also be recognized that there are different types of investors operating in agriculture and its value chains. These investors have different objectives and roles. In addition, there is a variety of sources of financing for investment and all the sources are not equally accessible to all investors.

It must also be acknowledged that investment capital comes in many forms: financial capital, productive capital, fixed capital, working capital, as well as human capital, social capital and natural capital. Different forms of capital cannot simply be added together to determine the total amount of capital available or needed. They overlap and complement each other, and some forms of capital cannot be substituted for others. Moreover, different types of investors exercise varying degrees of control and ownership over these different types of capital, and at different stages along value chains. Investments made by different investors can on occasion complement each other, whereas in other situations different investments cannot simply be substituted for others. For example, farm capital formation, which is essential for increasing agricultural production, depends on farmers’ own investment of labour and financial resources and cannot be substituted by other investors and sources of financing investment. Likewise, there are certain areas where only the public sector can or will invest. Conflicting goals can arise between different types of investors leading to tradeoffs that require public intervention to find the right balance between the economic, social and financial costs and benefits.