Dead capital is made up of assets that are not recognized in the financial economy. It is an economic term used to describe property which has no legal recognition.
It is a world where the ownership of assets is difficult to trace
and validate. It is governed by no legally recognizable set of
rules; where the assets’ potentially useful economic attributes
have not been described or organized; where they cannot be used
to obtain surplus value through multiple transactions because
their unfixed nature and uncertainty leave too much room for
misunderstanding, faulty recollection and reversal of agreement.
Where most assets, in short, are dead capital.Hernando De Soto, The Mystery of Capital
Agriculture is not just a food-producing industry. It is the backbone of the
rural livelihood system and a major source of employment. Moreover, smallholder farmers fill the major share of the global food production.
But, many rural farmers may not even have a savings account. They are located in remote areas and are not high income earners. Banks find it inconvenient and costly to provide services to those unbanked. Continue reading