Agriculture and Pro-Poor Growth: An Asian Perspective
AbstractNo country has been able to sustain a rapid transition out of poverty without raising productivity in its agricultural sector. Despite this historical role of agriculture in economic development, both the academic and donor communities lost interest in the sector, starting in the mid-1980s. This was mostly because of low prices in world markets for basic agricultural commodities, caused largely by the success of the Green Revolution in Asia. After two decades of neglect, interest in agriculture is returning. This paper explores the reasons why agriculture is back on the policy agenda for donors and poor countries alike. The most important reason is new understanding that economic growth is the main vehicle for reducing poverty and that growth in the agricultural sector plays a major role in that overall growth as well as in connecting the poor to growth. There is a sharp debate, however, between “optimists” and “pessimists” over the potential for small-scale agriculture to continue to play these historic roles. In a world of open trade, ready availability of cheap food in world markets, continued agricultural protection in rich countries, and economies of scale in access to food supply chains that are increasingly dominated by supermarkets and export buyers, large-scale farms with state-of-the-art technology and access to efficient infrastructure can push smallholders out of commercial markets. Consequently, the paper concludes, geographic coverage and operational efficiency of rural infrastructure, coupled to effective investment in modern agricultural research and extension, will determine the future role for agriculture in poverty reduction.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 63.
Length: 39 pages
Date of creation: Jul 2005
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Web page: http://www.cgdev.org
agriculture; economic development; economic growth; poverty;
Find related papers by JEL classification:
- Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- F35 - International Economics - - International Finance - - - Foreign Aid
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-08-26 (Agricultural Economics)
- NEP-ALL-2006-08-26 (All new papers)
- NEP-DEV-2006-08-26 (Development)
- NEP-EFF-2006-08-26 (Efficiency & Productivity)
- NEP-SEA-2006-08-26 (South East Asia)
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- Timmer, C. Peter, 2009. "Do Supermarkets Change the Food Policy Agenda?," World Development, Elsevier, vol. 37(11), pages 1812-1819, November.
- Benjamin N. Dennis & Talan Iscan, 2007. "Agricultural Distortions, Structural Change, and Economic Growth: A Cross-Country Analysis," Department of Economics at Dalhousie University working papers archive distort35, Dalhousie, Department of Economics.
- Kaya, Ozgur & Kaya, Ilker & Gunter, Lewell F., 2008. "The Impact of Agricultural Aid on Agricultural Sector Growth," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6743, Southern Agricultural Economics Association.
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- Kuhn, Arnim & Gaiser, Thomas & Gandonou, Esaïe, 2010. "Simulating the effects of tax exemptions on fertiliser use in Benin by linking biophysical and economic models," Agricultural Systems, Elsevier, vol. 103(8), pages 509-520, October.
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