It began with the Job-AQTIV-Gesetz, an act which was designed to get people back into work and which came into force on 1 January 2002, and was followed at the beginning of 2003 by the first two pieces of legislation to promote modern labour market services, better known as “Hartz I” and “Hartz II”.
Modernising smallholder farming will entail smallholders making greater use of purchased farm inputs. Hence modernisation will require smallholders having better access to finance. Nevertheless finance is unlikely to be the binding constraint on modernisation of smallholder agriculture and unless more important constraints are tackled, enhancing smallholders’ access to finance will be ineffective.