Productivity growth for poverty reduction: an approach to agriculture

Agriculture is a vital building block for development and poverty reduction, even though the historically poor performance of agriculture has led to many doubts of its relevance. This DFID document lays out the principles and priorities for agricultural development strategies. These are based on the premise that agricultural development – smallholder agriculture in particular – is a stepping stone to wider economic growth, better incomes and cheaper food. Policy and public investment decisions in agriculture need to be guided by six principles. They should:

• reflect the stage of a country’s development
• prioritise agricultural development in locations where significant productivity gains are possible and the links to the wider economy are strongest
• focus development efforts on farmers capable of increasing productivity and creating significant additional employment
• focus on demand and market opportunities
• make social protection complementary to agricultural growth
• ensure the sustainable use of key productive resources

Building on these guiding principles, efforts to accelerate agricultural growth in poor countries should focus on seven priority areas:

• create a supportive policy and operational framework
• target public spending more effectively
• tackle market failure
• fill the agricultural finance gap
• spread the benefits of new technology
• improve access to land and secure property rights
• reduce distortions in international agricultural markets