Agriculture
Growth in agriculture is twice as effective in reducing poverty as growth in other sectors.
The Challenge
Development assistance for agriculture has declined over the last two decades, leaving many poor countries more vulnerable to hunger and poverty. In sub-Saharan Africa especially, agriculture has been plagued by low productivity and under-investment, making it difficult for Africans to feed themselves and earn an income from farming. The spike in food prices in 2008 jeopardized even more people in poor countries as the price of imported foods such as rice, wheat, and corn peaked. This, coupled with the global financial crisis, resulted in a devastating economic impact on poor families, who often spend at least half of their income on food. It is estimated that in 2009 the number of hungry people around the world exceeded 1 billion. Although the number declined slightly to 925 million in 2010, it is now poised to go up again as world food prices are 50% higher than they were six months ago, an increase that analysts forecast could last years and could drive millions into poverty and hunger.
The Opportunity
Investing in agriculture can be transformative, especially for farmers in sub-Saharan Africa, where the sector employs nearly two-thirds of the population and accounts for an average one-third of GDP. Women produce 60-80% of food in sub-Saharan Africa, and the World Bank estimates that growth in the agriculture sector is twice as effective at reducing poverty as growth in other sectors. This investment will help the world's poorest people earn their way out of poverty. In addition to fueling economic growth, investment in agriculture will also enable the world's poorest countries to better feed their people and withstand future shocks from changing global food prices, weather patterns, and financial crises.
Access to tools, fertilizers, seeds, and information is urgently needed to help communities prevent another food crisis. Safety-nets like cash-for-work programs are also needed to ensure that the poorest families do not descend further into poverty. In the long-term, food security and economic growth will require significant investments in agriculture and rural development. With better infrastructure, improved technology and training, and access to financial services, farmers could benefit from increased crop yields and stronger connections to domestic, regional, and international markets.
Learn more, read the full Agriculture Issue Brief...
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Quick Facts
Approximately 925 million people are hungry
around the world today, a decrease of an estimated 80 million people since 2009.
Growth in agriculture is twice as effective
at reducing poverty compared to growth in other sectors.
2/3 of people in sub-Saharan Africa
are employed in agriculture.
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