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Assessing the Effects of Hazards and Interventions on Farm Household Liquidity in Sudan ‐ A Preliminary Accounting Model

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  • Geoff Bright

Abstract

The informed assessment of the effects of hazards on farm households and the design of appropriate interventions requires a knowledge of the pattern of household cash and asset stocks and flows. This paper uses the example of a poor farm household in Kordofan, Sudan to build a debt/savings model and then study the effects of environmental “shocks” and different forms of interventions. The results suggest that, in the absence of external injection in the form of technological improvement or worker remittances, over the period 1988–1992, households would have descended into a debt spiral, even with formal credit. With income improvements solvency would have only been ensured if formal credit had been available. Although more work needs to be done to increase the validity of such “accounting” models of farm household liquidity, this study has established a methodology which can be improved upon and applied elsewhere.

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  • Geoff Bright, 1999. "Assessing the Effects of Hazards and Interventions on Farm Household Liquidity in Sudan ‐ A Preliminary Accounting Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 83-92, January.
    • Handle: RePEc:bla:jageco:v:50:y:1999:i:1:p:83-92
    DOI: 10.1111/j.1477-9552.1999.tb00796.x
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    References listed on IDEAS

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    1. Saleem, Samir Taha, 1987. "On the Determination of Interest Rates in Rural Credit Markets: A Case Study from the Sudan," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 11(2), pages 165-172, June.
    2. Adam B. Elhiraika, 1996. "Risk‐Sharing And The Supply Of Agricultural Credit: A Case Study Of Islamic Finance In Sudan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 390-402, January.
    3. Christopher Udry, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 495-526.
    4. Adams, Dale W, 1988. "The Conundrum of Successful Credit Projects in Floundering Rural," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 355-367, January.
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    Cited by:

    1. Charvériat, Céline, 2000. "Natural Disasters in Latin America and the Caribbean: An Overview of Risk," IDB Publications (Working Papers) 1804, Inter-American Development Bank.
    2. Céline Charvériat, 2000. "Natural Disasters in Latin America and the Caribbean: An Overview of Risk," Research Department Publications 4233, Inter-American Development Bank, Research Department.
    3. Céline Charvériat, 2000. "Desastres naturales en América Latina y el Caribe: panorámica general del riesgo," Research Department Publications 4234, Inter-American Development Bank, Research Department.

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