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PROCERA: Institutionality, subsidy and effectiveness

Author

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  • Gervásio Castro de Rezende

Abstract

This paper presents the results of a research on the efficacy of the Special Program of Credit for Agrarian Reform (PROCERA). It begins by showing the recent evolution of disbursements within the Program, the sources of funds and the subsidy rate. It then proceeds by discussing the objectives of the Program and proposing a measure of its efficacy. In addition to that, it is argued that, due to the high subsidy rate and the Program’s institutional framework, that generates the belief on the part of the borrower that the loan is not to be paid, the Program’s efficacy must be very low. This means that most credit is used to buy consumer goods or to increase production for self-consumption, instead of increasing production geared to the market. Some empirical evidence in favor of this hypothesis is also presented. JEL Classification: Q18; O13; Q15.

Suggested Citation

  • Gervásio Castro de Rezende, 2001. "PROCERA: Institutionality, subsidy and effectiveness," Brazilian Journal of Political Economy, Center of Political Economy, vol. 21(4), pages 725-743.
    • Handle: RePEc:ekm:repojs:v:21:y:2001:i:4:p:725-743:id:2188
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    More about this item

    Keywords

    Land reform; income distribution; land ownership;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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