agroprocessors. FBOs formed with the help of agricultural extension agents were formed mainly to benefit from government programs, such as fertilizer or hybrid seed programs. The World Bank–funded Agricultural Sector Investment Project promoted innovation funds, which farmers could access only after forming a group. One condition for the formation of the FBO by the agricultural extension agents is that members be prepared to serve as guarantors for and to work with one another. Typically, agricultural programs allow farmers to access credit using group liability. The extension agents train the groups in skills such as basic bookkeeping and issues of group formation. Usually, the FBO elects a leader internally, with the help of agricultural extension agents. The other group of FBOs, those formed based on a common interest, such as agroprocessing, usually have a constitution and bylaws governing their activities. They also elect executives to run the FBO for a specified period. The executives are usually the chairperson, the secretary, and the treasurer. The main purpose of this type of FBO is to market outputs. They are also formed to access funds from formal financial institutions. Although FBOs have been widely promoted as a vehicle for agricultural development, the proportion of households in all the three zones that belong to an FBO was low (12 percent of households in the forest, 13 percent in the transition, and 20 percent in the savannah zone). In these households, it was typically the male head that was a member. Among female respondents who were not household heads, only 2 percent in the forest, 5 percent in the transition, and 5 percent in the savannah zones said they belonged to an FBO. Among female household heads, the percentage was only slightly higher (3 percent in the forest, 7 percent in the transition, and 6 percent in the savannah zones). Male household heads were significantly more likely to belong to an FBO than female household heads, controlling for ecological zone, literacy of household head, and a proxy for household wealth (table 5.38). The regression analysis also indicates that wealthier households and households located in the savannah zone were more likely to belong to an FBO. The literacy of the household head was not significantly related to FBO membership. Although FBO settings are an important mode of access to extension advice, all respondents viewed the main benefit of membership in an FBO as access to credit. Access to extension advice was rated as the main benefit of FBO membership by just 20 percent of FBO members (table 5.39). Church groups were the most important form of social organization in all zones (see annex table 5.A.16). Parent-teacher associations also have fairly high membership rates. Forty-five percent of female household members in male-headed households are members of women’s groups. The proportion of female-headed households in these groups is slightly higher. These figures suggest that such groups might be a better vehicle than FBOs for reaching women in rural areas.
THE SHORT ROUTE OF ACCOUNTABILITY
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