By Eric Clayton
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Extra resources for Agrarian Development in Peasant Economies
Indebtedness often places the cultivator at the mercy of the money-lender who, in extreme situations, can force him to 58 AGRARIAN DEVELOPMENT IN PEASANT ECONOMIES pay over everything, in excess of subsistence, leaving him no incentive to increase productivity. In Kenya, such debt problems are inhibited by tribal tenure arrangements. But, with the coming of private ownership in the land and the right to pledge it against a loan, debt may become a problem of the future, despite certain actions of Government to counteract this evil.
In extreme cases, this may make the sale of surplus produce not worthwhile and thereby hinder the growth of agriculture. In many parts of the world, one of the biggest problems of the peasant is debt. Indebtedness often places the cultivator at the mercy of the money-lender who, in extreme situations, can force him to 58 AGRARIAN DEVELOPMENT IN PEASANT ECONOMIES pay over everything, in excess of subsistence, leaving him no incentive to increase productivity. In Kenya, such debt problems are inhibited by tribal tenure arrangements.
The idea of the scheme had been that free gifts would induce people to practise better farming who, on experiencing the advantages of it, would maintain these standards. But, as with group farming (see next section), the African saw better farming only as a means of procuring government largesse and not apparently as a 1 The cess was originally a wartime, anti-inflationary measure. 26 AGRARIAN DEVELOPMENT IN PEASANT ECONOMIES benefit in itself. The scheme was, therefore, gradually wound up and, in its place, inducements to better farming took the form of loans to individual farmers.
Agrarian Development in Peasant Economies by Eric Clayton