Solutions to Financial Exclusion in Rural and Depopulated Areas: Evidence Based in Castilla y León (Spain)

Financial literacy and inclusion for rural agrarian change and sustainable livelihood in the Eastern Cape, South Africa

Finance and growth underpin the debate on the implication of financial literacy and financial inclusion for development among scholars. While financial inclusion and financial literacy are positioned as enablers of sustainable development, literature has failed to link the two with sustainable development, especially for rural agrarian dwellers in dire need of financial development attributes. Therefore, this study applied variance-based structural equation modelling to examine the implication of financial literacy and financial inclusion for the sustainable livelihood of rural agrarian settlers in the Eastern Cape province of South Africa. Global scales were adapted and validated before administering them to 283 farmers and subsistence businesses in the region. The results revealed that financial literacy positively and significantly influences financial inclusion (β = 0.452) and the attainment of sustainable livelihood (β = 0.444). Financial inclusion partially mediates the influence of financial literacy on sustainable livelihood (β = 0.253), as it directly explains the province's sustainable livelihood (β = 0.114). The study's implication informs structured intervention for improving financial literacy to assist the target group with access to requisite funding, which could support their economic activities for a decent living.

Financial Exclusion in Rural and Urban Contexts in Poland: A Threat to Achieving SDG Eight?

Financial inclusion, which consists of having a financial system that is easily accessible to citizens, is identified by various international organizations such as the new UN Agenda 2030, as a priority objective. This objective is particularly relevant in rural areas, where access to these services is more difficult, as citizens have to travel several kilometers to access them. In this study, we analyze the current situation of the Polish financial sector in terms of its accessibility, in order to measure the degree of financial inclusion. For this purpose, we use three combined methodologies. Initially, a data extraction from the Central Bank of Poland was carried out. Subsequently, three methodologies are applied to calculate financial inclusion. First, we apply the criteria of the Financial Access Survey (FAS) of the International Monetary Fund. Secondly, the Access to Cash Index (ACI) methodology by calculating a score that describes the access to banking services according to certain items. Finally, we applied the nearest neighbor methodology to detect in each voivodship those points where it is most difficult (measured in km distance) to access banking services. Some areas, especially in rural areas of the different voivodeships, present certain problems when it comes to accessing banking services. Therefore, the fulfillment of SDG 8.10 will be more difficult to achieve in these areas. The public authorities must pay attention to this, in order to reach the commitments acquired with the 2030 agenda, in terms of financial inclusion.