IDEAS home Printed from https://ideas.repec.org/p/fao/wpaper/0702.html
   My bibliography  Save this paper

Rural Development and Poverty Reduction; Is Agriculture Still the Key?

Author

Listed:
  • Gustavo Anríquez

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Kostas Stamoulis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

This paper examines the relationship between rurality and poverty, and the role the agricultural sector can play in rural development, poverty reduction, and overall development. The historical views regarding the role of the primary sector in development are presented, and then using original data, the paper argues that there was an historical misjudgment against the primary sector that served as a foundation for anti-agricultural bias in public policy until the late 80’s. Finally, this paper explains how under certain conditions territorial/regional development strategies may prosper, but in other conditions, particularly in the least-developed countries rural space, agriculture is still necessarily the starting point for rural development.

Suggested Citation

  • Gustavo Anríquez & Kostas Stamoulis, 2007. "Rural Development and Poverty Reduction; Is Agriculture Still the Key?," Working Papers 07-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  • Handle: RePEc:fao:wpaper:0702
    as

    Download full text from publisher

    File URL: ftp://ftp.fao.org/docrep/fao/010/ah885e/ah885e.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
    2. Ruttan, Vernon W., 1984. "Integrated rural development programmes: A historical perspective," World Development, Elsevier, vol. 12(4), pages 393-401, April.
    3. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007. "New Evidence on the Urbanization of Global Poverty," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 667-701, December.
    4. Nanak Kakwani & Shahid Khandker & Hyun H. Son, 2004. "Pro-poor growth: concepts and measurement with country case studies," Working Papers 1, International Policy Centre for Inclusive Growth.
    5. Johnston, Bruce F, 1970. "Agriculture and Structural Transformation in Developing Countries: A Survey of Research," Journal of Economic Literature, American Economic Association, vol. 8(2), pages 369-404, June.
    6. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    7. Chomitz, Kenneth M. & Buys, Piet & Thomas, Timothy S., 2005. "Quantifying the rural-urban gradient in Latin America and the Caribbean," Policy Research Working Paper Series 3634, The World Bank.
    8. A. de Janvry & E. Sadoulet, 2002. "World Poverty and the Role of Agricultural Technology: Direct and Indirect Effects," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 1-26.
    9. Haggblade, Steven & Hazell, P. B. R. & Reardon, Thomas, 2002. "Strategies for stimulating poverty-alleviating growth in the rural nonfarm economy in developing countries," EPTD discussion papers 92, International Food Policy Research Institute (IFPRI).
    10. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
    11. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications - Books, The World Bank Group, number 14084, December.
    12. Davis, Benjamin & Covarrubias, Katia & Stamoulis, Kostas G. & Winters, Paul C. & Carletto, Calogero & Quinones, Esteban & Zezza, Alberto & Di Giuseppe, Stefania, 2007. "Rural Income Generating Activities: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7913, European Association of Agricultural Economists.
    13. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
    14. Ocampo, José Antonio & Parra, María Angela, 2003. "The terms of trade for commodities in the twentieth century," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    15. Khan, Haider A., 1999. "Sectoral Growth and Poverty Alleviation: A Multiplier Decomposition Technique Applied to South Africa," World Development, Elsevier, vol. 27(3), pages 521-530, March.
    16. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    17. Vogel, Stephen J, 1994. "Structural Changes in Agriculture: Production Linkages and Agricultural Demand-Led Industrialization," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 136-156, January.
    18. François Perroux, 1950. "Economic Space: Theory and Applications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(1), pages 89-104.
    19. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 121-139, June.
    20. Ocampo, José Antonio & Parra, María Angela, 2003. "Returning to an external debate: the terms of trade for commodities in the twentieth century," Series Históricas 7797, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    21. Kostas G. Stamoulis & Prabhu Pingali & Prakash Shetty1, 2004. "Emerging Challenges for Food and Nutrition Policy in Developing Countries," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 154-167.
    22. Lopez, Ramon E. & Anriquez, Gustavo & Gulati, Sumeet, 2007. "Structural change and sustainable development," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 307-322, May.
    23. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    2. Peguero, Felipe & Zapata, Samuel & Sandoval, Luis, 2019. "Agricultural Production of Central America and the Caribbean: Challenges and Opportunities," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 34(3), September.
    3. Loayza, Norman V. & Raddatz, Claudio, 2010. "The composition of growth matters for poverty alleviation," Journal of Development Economics, Elsevier, vol. 93(1), pages 137-151, September.
    4. Stamoulis, Kostas & Zezza, Alberto, 2003. "A conceptual framework for national agricultural, rural development, and food security strategies and policies," ESA Working Papers 289082, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    5. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
    6. Aparna Rao & Risa Morimoto, 2020. "An Analysis of the use of Chemical Pesticides and their Impact on Yields, Farmer Income and Agricultural Sustainability: The Case for Smallholder Farmers in Ethiopia," Working Papers 234, Department of Economics, SOAS University of London, UK.
    7. repec:zbw:iamodp:91907 is not listed on IDEAS
    8. Katsushi S. Imai & Gordon Abekah-Nkrumah & Purnima Purohit, 2014. "Is Rural Contribution to Aggregate Poverty Reduction Substantial? New Evidence," Global Development Institute Working Paper Series 20814, GDI, The University of Manchester.
    9. Saari, M. Yusof & Rahman, M. Affan Abdul & Hassan, Azman & Habibullah, Muzafar Shah, 2016. "Estimating the impact of minimum wages on poverty across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 54(C), pages 490-502.
    10. Datt,Gaurav & Ravallion,Martin & Murgai,Rinku, 2016. "Growth, urbanization, and poverty reduction in India," Policy Research Working Paper Series 7568, The World Bank.
    11. Ge, Jianping & Lei, Yalin, 2013. "Mining development, income growth and poverty alleviation: A multiplier decomposition technique applied to China," Resources Policy, Elsevier, vol. 38(3), pages 278-287.
    12. Ligon, Ethan & Sadoulet, Elisabeth, 2018. "Estimating the Relative Benefits of Agricultural Growth on the Distribution of Expenditures," World Development, Elsevier, vol. 109(C), pages 417-428.
    13. Dorosh, Paul & Thurlow, James, 2018. "Beyond Agriculture Versus Non-Agriculture: Decomposing Sectoral Growth–Poverty Linkages in Five African Countries," World Development, Elsevier, vol. 109(C), pages 440-451.
    14. Ozgur Kaya & Ilker Kaya & Lewell Gunter, 2013. "Foreign Aid and the Quest for Poverty Reduction: Is Aid to Agriculture Effective?," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 583-596, September.
    15. Ozgur Kaya & Ilker Kaya, 2019. "Aid To Agriculture And Aggregate Welfare," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(02), pages 281-300, March.
    16. Nicoletta Berardi & Federica Marzo, 2017. "The Elasticity of Poverty with respect to Sectoral Growth in Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 147-168, March.
    17. Salasan, Cosmin & Fritzsch, Jana, 2009. "The Role Of Agriculture For Overcoming Rural Poverty In Romania," IAMO Discussion Papers 91907, Institute of Agricultural Development in Transition Economies (IAMO).
    18. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 2012-081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    20. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2006. "The role of agriculture in poverty reduction an empirical perspective," Policy Research Working Paper Series 4013, The World Bank.
    21. B. Essama‐Nssah & Peter J. Lambert, 2009. "Measuring Pro‐Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, September.

    More about this item

    Keywords

    rural development; agricultural growth; poverty reduction; production linkages.;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fao:wpaper:0702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gustavo Anríquez (email available below). General contact details of provider: https://edirc.repec.org/data/faoooit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.