Foreword .................................................. xiii
Acknowledgments ............................................. xv
Abbreviations and Data Notes .............................. xvii
Overview ..................................................... 1
What can agriculture do for development? ..................... 2
What are effective instruments in using agriculture for
development? ................................................. 8
How can agriculture-for-development agendas best be
implemented? ................................................ 18
Part I. What can agriculture do for development? ............... 26
1 Growth and poverty reduction in agriculture's three worlds .. 26
The structural transformation ............................... 27
The three worlds of agriculture for development ............. 29
Agriculture's development potential shortchanged ............ 38
The political economy of agricultural policy ................ 42
A new role for agriculture in development ................... 44
focus A: Declining rural poverty has been a key factor in
aggregate poverty reduction ................................. 45
2 Agriculture's performance, diversity, and uncertainties ..... 50
Productivity growth in developing countries drove
agriculture's global success ................................ 50
Growth across regions and countries has been uneven ......... 53
Differences in performance reflect different underlying
conditions Opportunities for a new agriculture through
diversification ............................................. 58
Future perspectives: confronting challenges and rising
uncertainties Conclusion—a continuing production challenge .. 68
focus B: Biofuels: the promise and the risks ................ 70
3 Rural households and their pathways out of poverty .......... 72
Three complementary pathways out of rural poverty:
farming, labor, and migration ............................... 73
The variation in rural households' income strategies ........ 74
Rural occupations and income sources ........................ 77
Household behavior when markets and governments fail:
rational, despite appearances ............................... 82
Rural household asset positions: often low and unequal ...... 84
Pervasive risks and costly responses ........................ 89
Smallholder challenges to compete ........................... 90
Conclusions ................................................. 92
focus C: What are the links between agricultural
production and food security? ............................... 94
Part II. What are effective instruments for using agriculture
for development? ............................................... 96
4 Reforming trade, price, and subsidy policies ................ 96
Agricultural protection and subsidies in developed
countries ................................................... 96
Agricultural taxation in developing countries ............... 98
Simulated gains from trade liberalization .................. 103
Scope for achieving potential gains ........................ 110
Transitional support ....................................... 112
Public investment for long-term development ................ 114
Conclusions ................................................ 116
5 Bringing agriculture to the market ......................... 118
Food staples: improving commodity trading and risk
management ................................................. 118
Traditional bulk export commodities: maintaining
international competitiveness .............................. 122
Higher-value urban markets: linking producers to modern
supply chains .............................................. 124
Higher-value exports: meeting product standards ............ 128
Conclusion ................................................. 133
focus D: Agribusiness for development ...................... 135
6 Supporting smallholder competitiveness through
institutional innovations .................................. 138
Land policies for secure rights and reallocating
resources .................................................. 138
Financial services for smallholders ........................ 143
Insurance to manage risk ................................... 147
Developing efficient input markets ......................... 150
Producer organizations in a context of value chains and
globalization .............................................. 153
Institutional innovations—still a work in progress ......... 157
7 Innovating through science and technology .................. 158
Genetic improvement has been enormously successful, but
not everywhere ............................................. 159
Management and systems technologies need to complement
genetic improvement ........................................ 163
Investing more in R&D ...................................... 165
Institutional arrangements to increase the efficiency and
effectiveness of R&D systems ............................... 169
Using available technology better: extension and ICT
innovations ................................................ 172
Moving forward ............................................. 176
focus E: Capturing the benefits of genetically modified
organisms for the poor ..................................... 177
8 Making agricultural systems more environmentally
sustainable ................................................ 180
Drivers of resource degradation ............................ 181
Improving agricultural water management .................... 182
Greening the green revolution .............................. 188
Managing intensive livestock systems ....................... 189
Reversing degradation in less-favored areas ................ 190
Payment for environmental services ......................... 197
Conclusions ................................................ 199
focus F: Adaptation to and mitigation of climate change
in agriculture ............................................. 200
9 Moving beyond the farm ..................................... 202
Rural employment: a daunting challenge ..................... 202
Agricultural wage employment ............................... 205
Rising rural nonfarm employment ............................ 209
Wages and earnings in the rural labor market ............... 212
Labor supply: migration and the urban economy .............. 214
Schooling, training, and transition to the labor market .... 216
Providing safety nets to reduce vulnerability .............. 219
A final word on rural labor markets and migration: the
need for policy attention .................................. 221
focus G: Education and skills for rural development ........ 222
focus H: The two-way links between agriculture and health .. 224
Part III. How can agriculture-for-development agendas best
be implemented? ............................................... 226
10 Emerging national agendas for agriculture's three worlds ... 226
New opportunities and challenges ........................... 226
The proposed approach ...................................... 227
Agriculture-based countries—accelerating growth, poverty
reduction, and food security ............................... 229
Transforming countries—reducing rural-urban income gaps
and rural poverty .......................................... 234
Urbanized countries—linking smallholders to the new food
markets and providing good jobs ............................ 238
Political, administrative, and financial feasibility ....... 242
Recognizing the policy dilemmas ............................ 243
11 Strengthening governance, from local to global ............. 245
Changing roles: the state, the private sector, and civil
society .................................................... 246
Agricultural policy processes .............................. 248
Governance reforms for better policy implementation ........ 251
Decentralization and local governance ...................... 254
Community-driven development ............................... 256
Aid effectiveness for agricultural programs ................ 257
Progress on the global agenda .............................. 258
Moving forward on better governance for agriculture ........ 265
Bibliographical note ....................................... 266
Endnotes ................................................... 269
References ................................................. 285
Selected indicators ........................................... 321
Selected agricultural and rural indicators ................. 322
Selected world development indicators ...................... 333
Index ...................................................... 355
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