> For the complete documentation index, see [llms.txt](https://ethichub.gitbook.io/ethichub/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ethichub.gitbook.io/ethichub/en/introduction/the-problem.md).

# The Problem

It is very worrying to know that **according to the World Bank**, **a quarter of the global population is excluded from the traditional financial system.** Their only source of working capital is the small cash loans they sometimes get within their own communities, often paying more than 100% annual interest for extremely scarce money. 

The worst thing about it is that **70% of these unbanked people are small farmers who live in poverty despite producing a third of the world's food**. 

This exclusion is particularly concentrated in long-term agricultural financing, for which 98% of global demand remains unmet (almost $1 trillion dollars). 

Its social, economic and environmental consequences have a global reach and are very severe: migration, poverty and deforestation to name a few, so it is crucial to implement an immediate solution with short and long-term results, because **agriculture is key to climate change.**

**Coffee is a clear example of the asymmetry of current supply chains**, where **the small producer is the weakest link**: 80% of all the coffee in the world is produced by small farmers who cultivate an average of 2 hectares each, but Banks and microfinance institutions do not serve them, even though coffee is one of the most traded commodities on the stock market. 

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This is mainly because their lands do not qualify as commercial collateral and their lack of connectivity prevents the generation of data.
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