New WB Report Discusses Importance of Agriculture for Development

Developing countries should invest in agriculture if they want to reduce poverty and hunger, says the new World Development Report. The report, titled “Agriculture for Development”, pointed out that the agricultural and rural sectors have suffered from underinvestment and disregard for the past 20 years. The report notes that less than 5 percent of the government budget is allotted for agriculture in many agriculture-based countries. In these countries  the agricultural sector is essential to overall growth and food security for about 417 million rural people, 170 million of whom live on less than $1 a day.

According to the report, the GDP growth originating from agriculture is about four times more effective in reducing poverty than those coming from other sectors. The report also noted that agriculture can offer an escape from poverty; should the developing countries invest in the staple food sector, enhance the participation of smallholders in horticulture, aquaculture, dairy and poultry markets, and provide jobs to the rural non-farm economy.

The World Bank Group is advocating a new ‘agriculture for development’ agenda. It has four policy objectives namely:

• Improvement of market access and establishment of efficient value chains
• Enhancement of smallholder competitiveness to facilitate their market entry
• Improvement of livelihoods in subsistence agriculture and low-skilled rural occupations
• Increase of employment opportunities in rural labor markets and skill enhancement

For its part, the Bank intends to continue increasing its support for agriculture and rural development, with the commitments for the 2007 fiscal year reaching $3.1 billion. Read the full report at http://siteresources.worldbank.org/INTWDR2008/Resources/WDR_00_book.pdf