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Agricultural Policies for Poverty Reduction

image of Agricultural Policies for Poverty Reduction

With more than two-thirds of the world’s poor living in rural areas, higher rural incomes are a pre-requisite for sustained poverty reduction and reduced hunger. This volume sets out a strategy for raising rural incomes which emphasises the creation of diversified rural economies with opportunities within and outside agriculture. Agricultural policies need to be integrated within an overall mix of policies and institutional reforms that facilitate, rather than impede, structural change. By investing in public goods, such as infrastructure and agricultural research, and by building effective social safety nets, governments can limit the role of less efficient policies such as price controls and input subsidies.

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Executive Summary

This study addresses the role of agricultural policies in raising incomes in developing countries. Higher incomes are essential for sustained progress on the first Millennium Development Goal (MDG1), which calls for the eradication of extreme poverty and hunger, and includes a specific target of reducing by 50% between 1990 and 2015 the proportion of people living on less than a dollar a day. The aim is to identify ways in which the appropriate set of policies may vary according to a country’s stage of development.

English

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