1_fruitThe loss of credit from supply chains which reach rural parts of developing countries will impact the potential for diffusion of new technology to rural populations. While the thought of the latest iPod gadget or iPhone app being delayed by a couple of months might be palatable for many, the implication for agricultural inputs is a different matter. Better newer technologies require champions and time to become mainstreamed as inputs. Often these are more expensive in the early days but the early adopters and innovators keen to advance their skills and productivity, will be keen to try.

But, with less credit, arguably there will be longer time lags in repayment on new technology roll-out for the middlemen/intermediary suppliers of these products. Longer pay-back periods will mean slower diffusion.

The chief issue here is that diffusion crowds out previous worse practice. DDT is still used by the government agencies in Uganda

Yet, more positively, some governments are injecting cash into their agricultural economies to keep persistent innovation up. Nigeria has commiteed N200m to productivity gains .  through the private sector.

Similar plans are needed across developing countries to ensure that quantitative easing does not result in DDT persisting, and productivity further flatlining.