CULTIVATION AND THE CREDIT CRUNCH

How the economic crisis affects poor farmers

Everywhere we look today, we are bombarded by stories of financial collapse and a growing economic crisis.

At IDE, we are seeking to balance a hard-nosed realism with our ongoing commitment to achieving audacious goals. We are driven also by the realization that the farmers we serve are often the first to be forgotten when crisis hits closer to home.

Just how are farmers in Africa and Asia being affected by the current meltdown?

We are seeing thousands of workers returning to Nepal as they lose their manual labour and service industry jobs overseas. With few other options, these workers will be turning to agriculture as their primary source of income.

The credit crunch affects start-ups in developing countries disproportionately as investors seek safety elsewhere. We have seen some recent commercial ventures – which promised to provide markets for small-scale farmers – dropped by jittery financiers.

In Zambia, a booming mining industry has been driving demand for fruits and vegetables in supermarkets and restaurants. With a crash in commodity prices and investment drying up, farmers will need to be more creative in finding alternative markets.

Investment by donors in North America and Europe is falling, which limits the ability of organizations like IDE to deliver services that increase opportunities for poor farmers.

On the last point, we are encouraged by Bill Gates’ recent response to the crisis – committing the Bill and Melinda Gates Foundation to increased spending this year, despite having lost over 20% of his personal fortune. We hope that his bold statement provides an example for others who find themselves in a position to give. In many ways, this is the time that farmers need our services most.

In this issue, we highlight some of the new initiatives and products that IDE is developing. We hope you find these stories reason for optimism in difficult times.