IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v40y2017icp94-104.html
   My bibliography  Save this article

A post-Marxist approach in development finance: PMF or production mutualisation fund model applied to agriculture

Author

Listed:
  • Son, Vien Nguyen
  • Schinckus, Christophe
  • Chong, Felicia

Abstract

Development finance offers several solutions to support economic activity in poor areas usually based on a lending system. Such a perspective is mainly founded on the idea that the payment of a high interest rate by small farmers and small producers can compensate their non-sustainability or non-bankability. Instead of focusing on individual producers, sustainability which is a macro-concept would more likely be obtained at the level of the overall value chain. Agriculture’s potential to develop rural areas depends on the scale of production and its impact on regional consumption and economy altogether. This article presents a way of improving these fundamental aspects through the development of a post-Marxist scheme transforming agriculture into a growth engine even for emerging countries. With this purpose, we introduce a new development model called PMF (Production Mutualisation Fund) whose aim is to mutualize the production and post-production chains and, therefore, extend the notion of bankability to the whole value chain. Such initiative suggests an alternative way of thinking development finance. It is no more about finding a way to lend money to the non-sustainable smallholders\producers. It is about financing viable industrial service companies which will provide all necessary services to secure an optimized production, traceability and distribution of processed agricultural produce to end-distributors. This goes beyond the mere agricultural sphere and applies to many production sectors increasingly challenged by a forever accelerated deployment of new technologies: it combines the implementation of production services with infrastructure services (water management, logistics, power production and supply, etc.) to support a production economy using the producer’s income as the key variable to optimize. In other words, such a model can contribute to the development of least to most industrialized economies.

Suggested Citation

  • Son, Vien Nguyen & Schinckus, Christophe & Chong, Felicia, 2017. "A post-Marxist approach in development finance: PMF or production mutualisation fund model applied to agriculture," Research in International Business and Finance, Elsevier, vol. 40(C), pages 94-104.
    • Handle: RePEc:eee:riibaf:v:40:y:2017:i:c:p:94-104
    DOI: 10.1016/j.ribaf.2016.12.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531916302173
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2016.12.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cooper, Christine, 2015. "Accounting for the fictitious: A Marxist contribution to understanding accounting's roles in the financial crisis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 30(C), pages 63-82.
    2. [multiple or corporate authorship]., 2014. "CASE annual report 2013," LSE Research Online Documents on Economics 58040, London School of Economics and Political Science, LSE Library.
    3. Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," American Economic Review, American Economic Association, vol. 92(2), pages 160-164, May.
    4. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    5. Anis Chowdhury, 2009. "Microfinance as a Poverty Reduction Tool—A Critical Assessment," Working Papers 89, United Nations, Department of Economics and Social Affairs.
    6. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    7. Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 939-993.
    8. World Bank, 2012. "World Development Report 2013 [Rapport sur le développement dans le monde 2013]," World Bank Publications - Books, The World Bank Group, number 11843.
    9. Schultz, Theodore W., 1979. "The Economics of Being Poor," Nobel Prize in Economics documents 1979-1, Nobel Prize Committee.
    10. repec:oup:qjecon:v:129:y:2014:i:2:p:939-993. is not listed on IDEAS
    11. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391.
    12. Steven Haggblade & Jeffrey Hammer & Peter Hazell, 1991. "Modeling Agricultural Growth Multipliers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 361-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jia, Fu & Blome, Constantin & Sun, Hui & Yang, Yang & Zhi, Bangdong, 2020. "Towards an integrated conceptual framework of supply chain finance: An information processing perspective," International Journal of Production Economics, Elsevier, vol. 219(C), pages 18-30.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    2. Yi Li, 2020. "Internet Development and Structural Transformation: Evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(1), pages 1-8.
    3. Xavier Oudin & Laure Pasquier-Doumer & Thai Pham Minh & François Roubaud & Dat Vu Hoang, 2014. "Adjustment of the Vietnamese Labour Market in Time of Economic fluctuations and Structural Changes," Working Papers DT/2014/04, DIAL (Développement, Institutions et Mondialisation).
    4. Paula Bustos & Juan Manuel Castro Vincenzi & Joan Monras & Jacopo Ponticelli, 2019. "Structural Transformation, Industrial Specialization, and Endogenous Growth," Working Papers wp2019_1906, CEMFI.
    5. Aimable Nsabimana & Patricia Funjika, 2019. "Mobile phone use, productivity and labour market in Tanzania," WIDER Working Paper Series wp-2019-71, World Institute for Development Economic Research (UNU-WIDER).
    6. Mai, Nhat Chi, 2022. "Capital Raising and Management of Vietnamese Small and Medium Sized Enterprises after Integrating into Global Economy," OSF Preprints dv68m, Center for Open Science.
    7. J. Vernon Henderson & Sebastian Kriticos, 2018. "The Development of the African System of Cities," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 287-314, August.
    8. Tasso Adam & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2024. "Land Security and Mobility Frictions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1941-1987.
    9. Sofia Amaral & Siddhartha Bandyopadhyay & Rudra Sensarma, 2015. "Public Work Programs and Gender-based Violence: The Case of NREGA in India," Discussion Papers 15-09, Department of Economics, University of Birmingham.
    10. Bagayev, Igor & Najman, Boris, 2013. "Less quality more costs: Does local power sector reliability matter for electricity intensity?," MPRA Paper 46943, University Library of Munich, Germany.
    11. Grimm, Michael & Paffhausen, Anna Luisa, 2015. "Do interventions targeted at micro-entrepreneurs and small and medium-sized firms create jobs? A systematic review of the evidence for low and middle income countries," Labour Economics, Elsevier, vol. 32(C), pages 67-85.
    12. Kotsadam, Andreas & Tolonen, Anja, 2016. "African Mining, Gender, and Local Employment," World Development, Elsevier, vol. 83(C), pages 325-339.
    13. Katherine V Gough & Francis Chigunta & Thilde Langevang, 2016. "Expanding the scales and domains of (in)security: Youth employment in urban Zambia," Environment and Planning A, , vol. 48(2), pages 348-366, February.
    14. Andréasson, Hannes & Elert, Niklas & Karlson, Nils, 2013. "Does Social Cohesion Really Promote Reforms?," Ratio Working Papers 211, The Ratio Institute.
    15. Donou-Adonsou, Ficawoyi & Sylwester, Kevin, 2017. "Growth effect of banks and microfinance: Evidence from developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 44-56.
    16. Ugo Panizza, 2023. "State-owned commercial banks," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 26(1), pages 44-66, January.
    17. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    18. Tetsushi Sonobe & Keijiro Otsuka, 2012. "The Role of Training in Fostering Cluster-Based Micro and Small Enterprises Development," WIDER Working Paper Series wp-2012-099, World Institute for Development Economic Research (UNU-WIDER).
    19. Asadullah, M. Niaz & Savoia, Antonio & Mahmud, Wahiduddin, 2014. "Paths to Development: Is there a Bangladesh Surprise?," World Development, Elsevier, vol. 62(C), pages 138-154.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:40:y:2017:i:c:p:94-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.