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March 2010 |
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In this Issue |
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From the Editors, Information and Communication Technology (ICT) can improve the service delivery capacity of rural financial institutions as well as businesses in the rural economy. A number of studies and experiences have demonstrated that ICT applications can reduce operational and transaction costs. Inefficiencies in the use of capital and human resources can also be reduced. A recently published World Bank book - Linking up and Reaching out in Bangladesh: Information and Communications Technology for Microfinance, offers an in-depth view of the microfinance industry in the country and identifies constraints related to insufficient use and availability of technology. The book provides lessons on the role ICT can play in addressing the constraints hindering the transformation and modernization of the microfinance sector in Bangladesh, a country that has one of the most effective and dynamic microfinance sector in the world. The book outlines specific technological and institutional design elements that are needed to establish an operational centralized ICT platform, which can enable all institutions and their respective decentralized units to be connected to each other and other actors in the financial sector, including credit bureaux and other financial infrastructure. ICT tools, when well utilized can have an impact in the agribusiness value chain. ICT can be used for dissemination of information and knowledge on good production practices and techniques to farmers that can improve their yields. ICT plays a critical role in connecting farmers to market information (market prices, demand and trade opportunities) for their commodities. A forthcoming study by the Food and Agriculture Organization of the UN (FAO) - ICT as a facilitator of market access and small holder inclusiveness in agrifood value chains will aim to analyze the role of ICT for agriculture service delivery including finance in the agribusiness value-chain. It will explore the potential value of ICT in production and linkages with value chain actors. The study will be accompanied by case studies selected based on their usefulness to illustrate practical lessons on the effects of ICT in specific value chains - such as efficiency gains, ability to generate innovative products and processes, risk management measures, market access and linkages. We would like to encourage our readers to suggest relevant experiences that can be used for the aforementioned study as practical cases illustrating the impact of ICT in agriculture value chains. You can submit your suggestions to the Rural Finance Learning Centre at RFLC@fao.org. Best regards,The RFLC Editorial Team |
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The Rural Finance Learning Centre is a part of the CABFIN Partnership Project which aims to promote and facilitate capacity building in rural finance. The concerns of rural finance are to ensure that people living in rural areas have access to financial services such as deposit and money transfer facilities, insurance and loan products. Effective use of these services can help to improve livelihoods and reduce rural poverty. The following CABFIN Partners have provided financial support to the RFLC:
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