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Agricultural Policies for Poverty Reduction

A Synthesis

image of Agricultural Policies for Poverty Reduction

This book synthesizes the findings of a longer work which sets out a strategy for raising rural incomes. It 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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Policy conclusions

Income growth is essential for progress on the first Millennium Development Goal (MDG1), which calls for the eradication of extreme poverty and hunger, with specific targets that include halving between 1990 and 2015 the proportion of people living on less than a dollar a day and the proportion of hungry. The MDG1 deadline calls for policies that can be effective quickly, i.e. over the short to medium term in which basic economic structures are essentially fixed.

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