Agricultural Growth and Poverty Reduction

Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. The authors present additional evidence at both the sectoral and household levels based on recent data. Results show that ru...

Full description

Bibliographic Details
Main Authors: de Janvry, Alain, Sadoulet, Elisabeth
Format: Journal Article
Published: World Bank 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4432
id okr-10986-4432
recordtype oai_dc
spelling okr-10986-44322021-04-23T14:02:17Z Agricultural Growth and Poverty Reduction de Janvry, Alain Sadoulet, Elisabeth agricultural frontier agricultural growth employment opportunities food prices food production income income growth land productivity poor poverty data poverty reduction poverty reduction strategy rural rural areas rural contribution rural poverty rural poverty reduction rural workers smallholder farming social programs Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. The authors present additional evidence at both the sectoral and household levels based on recent data. Results show that rural poverty reduction has been associated with growth in yields and in agricultural labor productivity, but that this relation varies sharply across regional contexts. GDP growth originating in agriculture induces income growth among the 40 percent poorest, which is on the order of three times larger than growth originating in the rest of the economy. The power of agriculture comes not only from its direct poverty reduction effect but also from its potentially strong growth linkage effects on the rest of the economy. Decomposing the aggregate decline in poverty into a rural contribution, an urban contribution, and a population shift component shows that rural areas contributed more than half the observed aggregate decline in poverty. Finally, using the example of Vietnam, the authors show that rapid growth in agriculture has opened pathways out of poverty for farming households. While the effectiveness of agricultural growth in reducing poverty is well established, the effectiveness of public investment in inducing agricultural growth is still incomplete and conditional on context. 2012-03-30T07:12:34Z 2012-03-30T07:12:34Z 2009-11-30 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/4432 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank World Bank Journal Article East Asia and Pacific Latin America & Caribbean Africa Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic agricultural frontier
agricultural growth
employment opportunities
food prices
food production
income
income growth
land productivity
poor
poverty data
poverty reduction
poverty reduction strategy
rural
rural areas
rural contribution
rural poverty
rural poverty reduction
rural workers
smallholder farming
social programs
spellingShingle agricultural frontier
agricultural growth
employment opportunities
food prices
food production
income
income growth
land productivity
poor
poverty data
poverty reduction
poverty reduction strategy
rural
rural areas
rural contribution
rural poverty
rural poverty reduction
rural workers
smallholder farming
social programs
de Janvry, Alain
Sadoulet, Elisabeth
Agricultural Growth and Poverty Reduction
geographic_facet East Asia and Pacific
Latin America & Caribbean
Africa
Brazil
description Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. The authors present additional evidence at both the sectoral and household levels based on recent data. Results show that rural poverty reduction has been associated with growth in yields and in agricultural labor productivity, but that this relation varies sharply across regional contexts. GDP growth originating in agriculture induces income growth among the 40 percent poorest, which is on the order of three times larger than growth originating in the rest of the economy. The power of agriculture comes not only from its direct poverty reduction effect but also from its potentially strong growth linkage effects on the rest of the economy. Decomposing the aggregate decline in poverty into a rural contribution, an urban contribution, and a population shift component shows that rural areas contributed more than half the observed aggregate decline in poverty. Finally, using the example of Vietnam, the authors show that rapid growth in agriculture has opened pathways out of poverty for farming households. While the effectiveness of agricultural growth in reducing poverty is well established, the effectiveness of public investment in inducing agricultural growth is still incomplete and conditional on context.
format Journal Article
author de Janvry, Alain
Sadoulet, Elisabeth
author_facet de Janvry, Alain
Sadoulet, Elisabeth
author_sort de Janvry, Alain
title Agricultural Growth and Poverty Reduction
title_short Agricultural Growth and Poverty Reduction
title_full Agricultural Growth and Poverty Reduction
title_fullStr Agricultural Growth and Poverty Reduction
title_full_unstemmed Agricultural Growth and Poverty Reduction
title_sort agricultural growth and poverty reduction
publisher World Bank
publishDate 2012
url http://hdl.handle.net/10986/4432
_version_ 1764391333656526848