The objective of this paper is to identify the possible role and opportunities for the private sector to participate with governments and farmers in developing and managing irrigation and drainage (I&D) infrastructure. Over the last 50 years, irrigated agriculture has been vital to meeting fast-rising food demand and has been key to poverty reduction. In the coming years the strong demographic demand for food is expected to continue, and intensified irrigated agriculture will have to provide close to 60 percent of the extra food.
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 paper was prepared to present at the Farmer First Revisited: 20 Years On conference at the Institute of Development Studies, University of Sussex, UK, December, 2007. Its focus is the challenge of strengthening agricultural innovation systems. The paper prefaces this discussion by reflecting on an apparent paradox. While agricultural innovation has never been better studied and understood, many of our ideas about innovation have failed to fundamentally change the institutional and policy setting of public and private investment intended to promote innovation for development.