Local development is facilitated by the establishment of strong links with institutions and sources of information and services to help rural people, in their efforts to increase agricultural production. Small farmers and rural producers become an agent for the economic welfare of the community by acting as a link between the poor farmers and the financial institutions, like banks. In some projects vertical linkages with organized industries have increased local agricultural production and returned a fair price for their produce. Access to technology, credit and services, and meaningful dialogue for non-exploitative relationships with local tradespeople and organizations are a necessity if local people are to take control of their development process. This is one way in which village people can develop the capability to deal with many other aspects of their situation over the course of time. The experience of rural producers helps other institutions and organizations to become more oriented to deal with local people without the pressure of an intermediary organization.
The ANARDE Foundation (funded by Aegis Chemical Corporation, Bombay) is an example of effective connections between farmers and financial institutions to the benefit of the farmer. The foundation has sponsored 350 villages in five centres of Gujarat State, India. They attempt only work which is part of current government programmes and in which they are confident of financial input. This ensures that village programmes which are initiated can be successfully implemented without raising false hopes. The foundation staff are thoroughly conversant with government programmes attend all government meetings and are prepared to guide villagers and help them to obtain financial input. ANARDE mobilizes and co-ordinates various resources such as government, banks, voluntary agencies and its own by providing managerial and technical assistance based on modern business norms.
In the Philippines, the Small Farmers Development Project worked with the government to acquire land ownership. The project promoted local participation through both public community meetings and working with designated leadership. Participants acquired skills in leadership, defining objectives and encouraging broader community participation.
In 1953 following the land reforms in China (Taipei), farmer's associations were formed at different levels, owned, operated and governed by bonafide farmers. Such associations have been cited as useful because they are effective partners with the government in planning and programme implementation in agricultural and rural development.