POLITICA ECONOMICA AGRARIA EUROPEA E INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Agriculture has features that make it unique as
  an instrument for development
• Agriculture has a strong record in development
• Increase access to assets
• Make smallholder farming more productive and
  sustainable
• Moving beyond farming a dynamic rural economy
  and skills to participate in it
• Defining an agriculture-for-development agenda
• Implementing an agriculture-for-development
  agenda

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Of the worlds poor 75 are rural and most are
  involved in farming.
• Agriculture remains a fundamental instrument for
  sustainable development and poverty reduction.
• Using agriculture as the basis for economic
  growth in the agriculture - based countries
  requires a productivity revolution in smallholder
  farming.
• Addressing income disparities in transforming
  countries requires a comprehensive approach that
  pursues multiple pathways out of poverty
• shifting to high-value agriculture
• decentralizing non - farm economic activities to
  rural areas
• providing assistance to help move people out of
  agriculture.
• Agricultures large environmental footprint must
  be reduced,
• farming systems made less vulnerable to climate
  change,
• agriculture harnessed to deliver more
  environmental services.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Three main questions
• What can agriculture do for development?
• Agriculture has served as a basis for growth and
  reduced poverty in many countries,
• but more countries could benefit
• if governments and donors were to reverse years
  of policy neglect and
• remedy their underinvestment and mis investment
  in agriculture.
• What are the effective instruments in using
  agriculture for development?
• increase the assets of poor households,
• make smallholders and agriculture in general more
  productive,
• create opportunities in the rural non-farm
  economy that the rural poor can seize.
• How can agriculture-for-development agendas best
  be implemented? By
• designing policies and decision processes most
  suited to each countrys economic and social
  conditions,
• mobilizing political support, and by improving
  local, national, and global governance of
  agriculture.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Three distinct rural worlds
• Agriculture-based countries
• Agriculture is a major source of growth,
  accounting for 32 percent of GDP growth on
  average.
• Eighty-two percent of the rural Sub-Saharan
  population lives in agriculture-based countries.
• Most of the poor are in rural areas (70 percent),
  particularly so in Sub-Saharan countries.
• Transforming countries
• Agriculture is no longer a major source of
  economic growth, contributing on average only 7
  percent to GDP growth,
• This group, typified by China, India, Indonesia,
  Morocco, and Thailand, has more than 2.2 billion
  rural inhabitants.
• 98 percent of the rural population in South
  Asia, 96 in East Asia and the Pacific, and 92
  in the Middle East and North Africa are in
  transforming countries.
• poverty remains overwhelmingly rural (79 percent
  of all poor).
• Urbanized countries
• Agriculture contributes directly to economic
  growth 5 on average, agribusiness and the food
  industry account for one third of GDP.
• Included in this group with 255 million rural
  inhabitants are most countries in Latin America
  and the Caribbean, and Eastern Europe and Central
  Asia.
• Poverty is mostly urban but rural areas still
  have 39 percent of the poor,

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Heterogeneity defines the rural world and is
  found in
• rural labor market
• many low-skill, poorly paid, agricultural jobs
• few high-skill jobs
• rural non-farm economy
• low- productivity self- and wage-employment
• employment in dynamic enterprises.
• outcomes of migration
• some of the rural poor out of poverty,
• others to urban slums and continued poverty.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Heterogeneity has implications for public policy
• A policy reform has gainers and losers.
• Trade liberalization that raises the price of
  food
• hurts net buyers (the largest group of rural poor
  in countries like Bolivia and Bangladesh)
• benefits net sellers (the largest group of rural
  poor in Cambodia and Vietnam).
• Policies have to be differentiated according to
  the status and context of households
• Differentiated policies designed
• not necessarily to favor one group over the other
• to serve all households more cost-effectively
• tailoring policies to their conditions and needs,
  particularly to the poorest.
• Balancing attention to the favored and
  less-favored sub-sectors, regions, and households
  is one of the toughest policy dilemmas facing
  poor countries with severe resource constraint.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Agriculture can be the leading sector in the
  agriculture - based countries
• in many of these countries, food remains
  imperfectly tradable because of high transaction
  costs and the prevalence of staple foods that are
  only lightly traded, such as roots and tubers and
  local cereals.
• many of these countries must largely feed
  themselves. Agricultural productivity determines
  the price of food, which in turn determines wage
  costs and competitiveness of the tradable
  sectors. Productivity of food staples is thus
  key to growth.
• comparative advantage in the tradable sub -
  sectors will still lie in primary activities
  (agriculture and mining) and agro - processing
  for many years, because of resource endowments
  and the difficult investment climate for
  manufactures.
• Most economies depend on a diverse portfolio of
  unprocessed and processed primary-based exports
  (including tourism) to generate foreign exchange.
  

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Agriculture can be the leading sector in the
  agriculture - based countries
• Growth in both the non tradable and tradable
  sectors of agriculture also induces strong growth
  in other sectors of the economy through
  multiplier effects.
• Success stories of agriculture as the basis for
  growth at the beginning of the development
  process abound
• Agricultural growth was the precursor to the
  industrial revolutions that spread across the
  temperate world from England in the mid-18th
  century to Japan in the late-19th century.
• More recently, rapid agricultural growth in
  China, India, and Vietnam was the precursor to
  the rise of industry.
• The special powers of agriculture as the basis
  for early growth are well established. Parallel
  to these successes are numerous failures to use
  agriculture for development.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Agriculture has been vastly underused for
  development
• Rapid population growth, declining farm size,
  falling soil fertility, and missed opportunities
  for income diversification and migration create
  distress as the powers of agriculture for
  development remain fallow.
• Policies that excessively tax agriculture and
  under-invest in agriculture are to blame,
  reflecting a political economy in which urban
  interests have the upper hand.
• Compared with successful transforming countries
  when they still had a high share of agriculture
  in GDP, the agriculture-based countries have very
  low public spending in agriculture as a share of
  their agricultural GDP (4 in the
  agriculture-based countries in 2004 compared with
  10 in 1980 in the transforming countries
• The pressures of recurrent food crises also tilt
  public budgets and donor priorities toward direct
  provision of food rather than investments in
  growth and achieving food security through rising
  incomes.
• Where women are the majority of smallholder
  farmers, failure to release their full potential
  in agriculture is a contributing factor to low
  growth and food insecurity.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• .
• Agriculture vastly underused for development not
  only in the agriculture-based countries bat also
  In transforming countries with rapid growth in
  nonagricultural sectors
• The reallocation of labor out of agriculture is
  typically lagging, leaving large numbers of poor
  people in rural areas and widening the
  rural-urban income gap.
• The farm population demands subsidies and
  protection.
• But weak fiscal capacity to sustain transfers
  large enough to reduce the income gap and
  continuing urban demands for low food prices
  create a policy dilemma.
• The opportunity cost of subsidies (which are
  three times public investments in agriculture in
  India) is reduced public goods for growth and
  social services in rural areas.
• Raising incomes in agriculture and the rural
  nonfarm economy must be part of the solution.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New opportunities - Agriculture has changed
  dramatically over the last three decades, due to
• Dynamic new product markets
• Leading role of private entrepreneurs including
  smallholders supported by their organizations
• extensive value chains linking producers to
  consumers
• staple crops and traditional export commodities
  also finds new markets
• Regional market integration
• New uses ( bio-fuels )
• far-reaching technological and institutional
  innovations
• new roles for the state, the private sector, and
  civil society

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Emerging new roles
• Production is mainly by smallholders, who often
  remain the most efficient producers, in
  particular when supported by their organizations.
  
• But when these organizations cannot capture
  economies of scale in production and marketing,
  labor-intensive commercial farming can be a
  better form of production and
• Efficient and fair labor markets are the key
  instrument to reducing rural poverty.
• The private sector drives the organization of
  value chains that bring the market to
  smallholders and commercial farms.
• The state - through enhanced capacity and new
  forms of governance -
• corrects market failures, regulates competition,
  and
• engages strategically in public-private
  partnerships to
• promote competitiveness in the agribusiness
  sector and
• support the greater inclusion of smallholders
  and rural workers.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Increase access to assets
• household assets are major determinants of
• ability to participate in agricultural markets
• secure livelihoods in subsistence farming,
• compete as entrepreneurs in the rural non-farm
  economy,
• find employment in skilled occupations.
• Three core assets are land, water, and human
  capital. The assets of the rural poor squeezed by
• population growth,
• environmental degradation,
• expropriation by dominant interests, and
• social biases in policies and in the allocation
  of public goods.
• Nowhere is the lack of assets greater than in
  Sub-Saharan Africa, where
• farm sizes in many of the more densely populated
  areas are unsustainably small and falling,
• land is severely degraded,
• investment in irrigation is negligible, and
• poor health and education limit productivity and
  access to better options.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Increase access to assets
• Population pressure together with declining farm
  size and water scarcity are also major challenges
  in many parts of Asia.
• In many cases enhancing assets requires
  significant public investments in
• irrigation
• health
• education
• In others cases, it is more a matter of
  institutional development, such as
• enhancing the security of property rights
• Improving the quality of land administration
• Increasing assets may also call for affirmative
  action to equalize chances for disadvantaged or
  excluded groups, such as women and ethnic
  minorities.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Access to land
• Land markets, particularly rental markets, can
  raise productivity, help households diversify
  their incomes, and facilitate exit from
  agriculture.
• As farmers age, as rural economies diversify, and
  as migration accelerates, well-functioning land
  markets are needed to
• transfer land to the most productive users
• facilitate participation in the rural non farm
  sector
• Facilitate migration out of agriculture.
• Poor performance of land market due to
• Insecure property rights
• poor contract enforcement
• stringent legal restrictions
• Poor performance of land markets leads to
• large inefficiencies
• further inequalities
• Land reform to
• promote smallholder entry into the market,
• reduce inequalities in land distribution,
• increase efficiency
• Redistributing underutilized large estates to
  settle smallholders can work if complemented by
  reforms to secure the competitiveness of
  beneficiaries

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Access to water
• Access to water and irrigation is a major
  determinant of land productivity and the
  stability of yields.
• Irrigated land productivity is more than double
  that of rain-fed land.
• In Sub-Saharan Africa, only 4 of the area in
  production is under irrigation, compared with 39
  percent in South Asia and 29 percent in East
  Asia.
• With climate change leading to rising
  uncertainties in rain-fed agriculture and reduced
  glacial runoff, investment in water storage will
  be increasingly critical.
• Even with growing water scarcity and rising costs
  of large-scale irrigation schemes, there are many
  opportunities to enhance productivity by
  revamping existing schemes and expanding
  small-scale schemes and water harvesting.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Access to education
• education is often the most valuable asset for
  rural people to pursue opportunities in the new
  agriculture, obtain skilled jobs, start
  businesses in the rural non - farm economy, and
  migrate successfully.
• education levels in rural areas tend to be
  dismally low worldwide an average of four years
  for rural adult males and less than three years
  for rural adult females in Sub- Saharan Africa,
  South Asia, and the Middle East and North Africa.
  
• Improving basic rural education has been slower
  than in urban areas. Where demand for education
  is lagging among rural households, it can be
  enhanced through cash transfers (as in
  Bangladesh, Brazil, and Mexico) conditional on
  school attendance.
• However, it is the quality of rural education
  that most needs improvement, with education
  conceived broadly to include vocational training
  that can provide technical and business skills
  that are useful in the new agriculture and the
  rural nonfarm economy.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• New tools - Access to health services
• Widespread illness and death from HIV/AIDS and
  malaria can greatly reduce agricultural
  productivity and devastate livelihoods.
• The majority of people affected by HIV work in
  farming, and there is tremendous scope for
  agricultural policy to be more HIV-responsive in
  supporting adjustments to labor shocks and the
  transmission of knowledge to orphans.
• Agriculture also poses threats to the health of
  the rural poor.
• Irrigation can increase the incidence of malaria,
  and pesticide poisoning is estimated to cause
  355,000 deaths annually.
• Zoonotic diseases such as avian influenza that
  arise from the proximity of humans and animals
  pose growing threats to human health.
• Better coordination of the agriculture and
  health agendas can yield big dividends for
  productivity and welfare.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Make smallholder farming more productive and
  sustainable
• Improving the productivity, profitability, and
  sustainability of smallholder farming is the main
  pathway out of poverty
• A broad array of policy instruments, many of
  which apply differently to commercial
  smallholders and to those in subsistence farming,
  can be used to achieve the following
• Improve price incentives and increase the quality
  and quantity of public investment
• Make markets work better
• Improve access to financial services and reduce
  exposure to uninsured risks
• Enhance the performance of producer organizations
• Promote innovation through science and technology
  
• Make agriculture more sustainable and a provider
  of environmental services

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Moving beyond farming a dynamic rural economy
  and skills to participate in it
• a dynamic rural economy and skills to participate
  in it
• In Asia and Latin America between 45 and 60
  percent of the rural labor force is engaged in
  the agricultural labor market and the rural
  nonfarm economy.
• Only in Sub-Saharan Africa is self- employment in
  agriculture still by far the dominant activity
  for the rural labor force, especially for women.
  
• The rural labor market offers employment
  possibilities for the rural population in the new
  agriculture and the rural non farm sector.
• Opportunities are better for those with skills,
  and women with lower education levels are at a
  disadvantage.
• Migration can be a climb up the income ladder for
  well-prepared, skilled workers, or it can be a
  simple displacement of poverty to the urban
  environment for others.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Moving beyond farming a dynamic rural economy
  and skills to participate in it
• policy priority to create more jobs in both
  agriculture and the rural non - farm economy.
• Basic ingredients of a dynamic rural non - farm
  economy are
• a rapidly growing agriculture
• a good investment climate.
• Linking the local economy to broader markets by
• reducing transaction costs,
• investing in infrastructure, and
• providing business services
• Agro-based clusters - firms in a geographic area
  coordinating to compete in servicing dynamic
  markets- have been effective
• The real challenge is to help the transition of
  the rural population into higher-paying jobs.
• Labor regulations are needed that help
  incorporate a larger share of rural workers into
  the formal market and eliminate discrimination
  between men and women.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Moving beyond farming a dynamic rural economy
  and skills to participate in it
• Education, skills, and entrepreneurship can be
  fostered by providing incentives for parents to
  better educate their children, improving the
  quality of schools, and providing educational
  opportunities relevant to emerging job markets.
• Providing social assistance to the chronic and
  transitory poor can increase both efficiency and
  welfare.
• Efficiency gains come from reducing the cost of
  risk management and the risk of asset de -
  capitalization in response to shocks.
• Welfare gains come from supporting the chronic
  poor with food aid or cash transfers.
• These policies have been shown to have important
  spillover effects on the health and education of
  the pensioners grandchildren.
• Safety nets, such as guaranteed workfare programs
  and food aid or cash transfers, also have an
  insurance function in protecting the most
  vulnerable against shocks.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• Moving beyond farming a dynamic rural economy
  and skills to participate in it
• Providing social assistance to the chronic and
  transitory poor can increase both efficiency and
  welfare.
• Efficiency gains come from reducing the cost of
  risk management and the risk of asset de -
  capitalization in response to shocks.
• Welfare gains come from supporting the chronic
  poor with food aid or cash transfers. In Brazil
  and South Africa, rural noncontributory pension
  funds protect the aged, facilitate earlier land
  transfers to the younger generation, and relieve
  those who work from the financial burden of
  supporting the elderly.
• These policies have been shown to have important
  spillover effects on the health and education of
  the pensioners grandchildren.
• Safety nets, such as guaranteed workfare programs
  and food aid or cash transfers, also have an
  insurance function in protecting the most
  vulnerable against shocks.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Rural households pursue portfolios of farm and
  non - farm activities that allow them to
  capitalize on the different skills of individual
  members and to diversify risks.
• Pathways out of poverty can be through
  smallholder farming, wage employment in
  agriculture, wage or self-employment in the rural
  non - farm economy, and migration out of rural
  areas?or some combination thereof.
• Gender differences in access to assets and
  mobility constraints are important determinants
  of available pathways.
• Making agriculture more effective in supporting
  sustainable growth and reducing poverty starts
  with
• a favorable sociopolitical climate
• adequate governance
• sound macro fundamentals.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Making agriculture more effective in supporting
  sustainable growth and reducing poverty requires
  defining an agenda for each country type, based
  on a combination of four policy objectives -
  forming a policy diamond
• Objective 1. Increase access to markets and
  promote efficient value chains ?
• Objective 2. Enhance smallholder competitiveness
  and facilitate market entry ?
• Objective 3. Improve livelihoods in subsistence
  farming and low-skill rural occupations ?
• Objective 4. Increase employment in agriculture
  and the rural non - farm economy, and enhance
  skills

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• An agenda with the following characteristics
• Established preconditions. Without social peace,
  adequate governance, and sound macro
  fundamentals, few parts of an agricultural agenda
  can be effectively implemented. This basic
  premise was all too often missing in
  agriculture-based countries until the mid-1990s,
  particularly in Sub-Saharan Africa.
• Comprehensive. The agenda combines the four
  objectives of the policy diamond, depending on
  country context, and based on indicators that
  help in defining, monitoring, and evaluating
  progress toward each policy objective.
• Differentiated. Agendas differ by country type,
  reflecting differences in priorities and
  structural conditions across the three
  agricultural worlds. The agendas must be further
  customized to country specifics through national
  agricultural strategies with wide stakeholder
  participation.
• Sustainable. The agendas must be environmentally
  sustainable both to reduce the environmental
  footprint of agriculture as well as to sustain
  future agricultural growth.
• Feasible. To be implemented and have significant
  impact, policies and programs must meet the
  conditions of political feasibility,
  administrative capacity, and financial
  affordability.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Agriculture - based countries achieving growth
  and food security
• Sub-Saharan countries account for 82 of the
  rural population in the agriculture- based
  countries.
• For them, with both limited tradability of food
  and comparative advantage in primary subsectors,
  agricultural productivity gains must be the basis
  for national economic growth and the instrument
  for mass poverty reduction and food security.
• As macroeconomic conditions improved in
  Sub-Saharan Africa starting in the mid-1980s
  agricultural growth accelerated from 2.3 percent
  per year in the 1980s to 3.8 percent between 2001
  and 2005.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Agriculture - based countries achieving growth
  and food security
• Rural poverty started to decline where growth
  occurred, but rapid population growth is
  absorbing much of the gain, reducing per capita
  agricultural growth to 1.5 .
• Faster growth and poverty reduction are now
  achievable, but they will require commitments,
  skills, and resources.
• Diverse local conditions in Sub-Saharan Africa
  produce a wide range of farming systems and
  reliance on many types of food staples, implying
  a path to productivity growth that differs
  considerably from that in Asia.
• Although diversity complicates the development of
  new technologies, it offers a broad range of
  opportunities for innovation.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Agriculture - based countries achieving growth
  and food security
• Dependence on the timing and amount of rainfall
  increases vulnerability to weather shocks and
  limits the ability to use known yield-enhancing
  technologies. But the untapped potential for
  storing water and using it more efficiently is
  enormous.
• Small and landlocked countries cannot achieve
  economies of scale in product markets, research,
  training, and policy design alone, making
  regional integration important for overcoming
  some of the barriers.
• Low population density that increases the cost
  of providing infrastructure services and loss of
  human resources because of HIV/AIDS impose
  additional constraints.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Agriculture - based countries achieving growth
  and food security
• The agenda for Sub-Saharan Africa is to enhance
  growth by improving smallholder competitiveness
  in medium and higher potential areas, where
  returns on investment are highest, while
  simultaneously ensuring livelihoods and food
  security of subsistence farmers.
• Getting agriculture moving requires improving
  access to markets and developing modern market
  chains. It requires a smallholder-based
  productivity revolution centered on food staples
  and on traditional and nontraditional exports.
• Long- term investments in soil and water
  management are needed to enhance the resilience
  of farming systems, especially for people in
  subsistence farming in remote and risky
  environments. And it requires capitalizing on
  agricultural growth to activate the rural non
  farm economy in producing non tradable goods and
  services.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Agriculture - based countries achieving growth
  and food security .
• The Sub-Saharan context implies four distinct
  features of an agriculture-for-development
  agenda.
• First, a multi sectoral approach must capture the
  synergies for technologies (seeds, fertilizer,
  livestock breeds), sustainable water and soil
  management, institutional services (extension,
  insurance, financial services), and human capital
  development (education, health)?all linked with
  market development.
• Second, agricultural development actions must be
  decentralized to tailor them to local conditions.
  These include community-driven approaches with
  women, who account for the majority of farmers in
  the region, playing a leading role.
• Third, the agendas must be coordinated across
  countries to provide an expanded market and
  achieve economies of scale in such services as
  RD.
• Fourth, the agendas must give priority to
  conservation of natural resources and adaptation
  to climate change to sustain growth.

32
POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Transforming countries reducing rural - urban
  income disparities and rural poverty
• In these countries, agriculture is almost
  exclusively in the hands of smallholders.
• Continuing demographic pressures imply rapidly
  declining farm sizes, becoming so minute that
  they can compromise survival if off-farm income
  opportunities are not available.
• Competition over access to water is acute, with
  rising urban demands and deteriorating quality
  from runoffs.
• As non farm incomes rise, pressures to address
  rural- urban income disparities through subsidies
  would compete for fiscal expenditures, at a high
  opportunity cost for public goods and rural basic
  needs.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Transforming countries reducing rural - urban
  income disparities and rural poverty
• On the other hand, addressing those disparities
  through import protection would elevate food
  costs for the large masses of poor consumers who
  are net food buyers.
• Because of demographic pressures and land
  constraints, the agenda for transforming
  countries must jointly mobilize all pathways out
  of poverty
• farming,
• employment in agriculture and the rural non farm
  economy,
• and migration.
• Prospects are good for promoting rural incomes
  and avoiding the subsidy-protection trap, if the
  political will can be mustered.
• Rapidly expanding markets for high-value
  products, especially horticulture, poultry, fish,
  and dairy?offer an opportunity to diversify
  farming systems and develop a competitive and
  labor-intensive smallholder sector.

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POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Transforming countries reducing rural - urban
  income disparities and rural poverty
• Export markets for nontraditional products are
  also accessible because transforming countries
  have a comparative advantage in labor- and
  management-intensive activities.
• Many countries have high levels of poverty in
  less-favored regions that require better
  infrastructure and technologies adapted to these
  regions.
• To confront rural unemployment, a complementary
  policy objective is promoting a dynamic rural non
  farm sector in secondary towns, linked to both
  agriculture and the urban economy.
• China has brought industry to rural towns,
  diversifying rural incomes, an approach that
  could be emulated in other transforming
  countries.
• The momentous changes this restructuring implies
  must be insured by effective safety-net programs
  to allow households to assume risks in moving to
  their best options.

35
POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Urbanized countries linking smallholders to
  modern markets and providing good jobs
• The broad goal is to capitalize on rapid
  expansion of modern domestic food markets and
  booming agricultural sub sectors to sharply
  reduce the remaining rural poverty, still
  stubbornly high.
• The urbanized countries, with 32 million rural
  poor representing 45 of all their poor - are
  experiencing the supermarket revolution in food
  retailing.
• For smallholders, being competitive in supplying
  supermarkets is a major challenge that requires
  meeting demanding standards and achieving scale
  in delivery, for which effective producer
  organizations are essential.
• Rampant land inequality in Latin America also
  constrains smallholder participation.
• Beyond farming, territorial approaches are being
  pursued to promote local employment through
  interlinked farming and rural agro industry, and
  these experiences need to be better understood
  for wider application.

36
POLITICA ECONOMICA AGRARIA EUROPEA E
INTERNAZIONALE 0809 AGRICULTURE FOR DEVELOPMENT

• How can Agriculture for development agendas best
  be implemented?
• Urbanized countries linking smallholders to
  modern markets and providing good jobs
• For regions without such potential, the
  transition out of agriculture and the provision
  of environmental services offer better prospects.
  But support to the agricultural component of the
  livelihoods of subsistence farmers will remain an
  imperative for many years.
• Export markets for nontraditional products are
  also accessible because transforming countries
  have a comparative advantage in labor- and
  management-intensive activities.
• Many countries have high levels of poverty in
  less-favored regions that require better
  infrastructure and technologies adapted to these
  regions.
• To confront rural unemployment, a complementary
  policy objective is promoting a dynamic rural
  nonfarm sector in secondary towns, linked to both
  agriculture and the urban economy.
• China has brought industry to rural towns,
  diversifying rural incomes, an approach that
  could be emulated in other transforming
  countries.