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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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Welfare impacts by crop, at the time of the “worst” price shock (largest crop-cumulative six-month price increase)

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