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Author
Ferri Giovani (University of Bari Aldo Moro, Italy), Patruno Giuseppe (University of Bari Aldo Moro, Italy)
Title
The Credit System as an Instrument for the Deyelopment of Agriculture: the Case of the Apulia Region
Source
Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia, 2008, nr 13, s. 69-90, bibliogr. 23 poz.
Keyword
Kredyt, Rozwój rolnictwa
Credit, Rural development
Note
, summ.
Abstract
This paper explores the possible links between the set up of agricultural credit and the progress of agriculture by investigating the experience of Apulia in two selected periods. Specifically, the first one is the period including the last decades of the 19th century (after Italy was unified in 1861), while the second one refers to the Second Postwar period (up to the early 1960s, before the European Com-mon Agricultural Policy was phased in). The first period brought about widespread change for Apulia's agriculture with attempts to im-prove land tenure - where the investment was entrusted onto peasants by the large land-owners through "land improvement contracts" - together with increasing exports. Regarding the credit sys¬tem, at the same time, Apulia witnessed the birth of a surprisingly large number of private banks -some as joint stock companies, others as cooperative banks (banche popolari). These banks were launched by the very same large land-owners promoting the improvement in land tenure and by and large focused on lending to those peasants. Such a mechanism, which initially seemed to give good results, eventually delivered only ephemeral effects. The possible progress of agriculture tumed soon into an impoverishment. During the second period, instead, as the rest of Southern Itały, ApuHa benefited from the Land Reform providing an extensive redistribution of land ownership - implying a reduced role for the large land-owners - by widespread innovation in agricultural techniques and by visible change in the agri¬cultural product mix. Through this, Apulia's agriculture achieved increased returns. Regarding the credit system, the change of the agricultural sector was accompanied by the evolution of new agricul¬tural credit schemes which, sińce the 1930s, were entrusted onto newly founded public sector lending intermediaries: the agriculture special credit institutions. These institutions - through the backing of public guarantees and subsidies plus their different modus operandi - took a longer-term approach, thus promoting the long term progress of Apulia's agriculture. In this case, the evolution was not short lived but was there to stay.(original abstract)
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ISSN
1640-6818
1733-2842
Language
eng
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