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Giving agriculture a pride of place
THE importance of agriculture cannot be overemphasised. Agriculture contributes to development as a provider of environmental services.
It can be the main source of growth for the national economy in low income countries, a provider of investment opportunities for the private sector, and a prime driver of agriculture-related industries and the rural non-farm economy.
Three of every four people in developing countries live in rural areas; 2.1 billion live on less than $ 2 a day and 880 million, on less than $1 a day most depend on agriculture for their livelihood. Promoting agriculture is imperative for meeting the Millennium Development Goals of halving poverty and hunger, by 2015.
Agriculture alone will not be enough to massively reduce poverty, but poverty reduction will not happen without agriculture! Agriculture is also essential for food security. Global food security is at risk, as slow yield growth fails to meet burgeoning demand for food and biofuel. On the demand side, increasing incomes of the poorest that depend on agriculture for their livelihood is critical to providing increased access to food. It is also a major provider of environmental services, generally unrecognized and unremunerated, sequestering carbon, managing watersheds, and preserving biodiversity. With rising resource scarcity, climate change, and concern about environmental costs, business as usual in the way, agriculture uses natural resources is not an option. New technologies make it possible to grow crops in ways that conserve water and protect soil fertility.
Also, by shifting responsibility for managing water, land, forests and soil to local communities, a better balance is achieved between agricultural growth and environmental protection. While agriculture has helped drive economic growth, poverty reduction, and improvements in environmental management in many countries, there are also numerous failures to with regard to employing agriculture for development. What is Nigeria’s business with food insecurity resulting from the global melt down? How does one explain a situation whereby the governments in Nigeria exhibit lack of vision and focus in tackling the problem of massive unemployment in the country? The vast expense of arable land, good weather and favourable geographical features that would have combined with good policy and sustained investments would have created full employment in agriculture and agriculture - based components.
An emerging vision of agriculture for development redefines the roles of producer, the private sector, and the state.
In this vision, production is mainly by small holders, who often remain the most efficient producers in particular when supported by their organisations.The private sector drives the organisation of value chains that bring the market to small holders.
The state, through enhanced capacity and new forms of governance corrects market failures, regulates competition, and engages strategically in public-private partnerships. These new partnerships promote competitiveness in the agriculture business sector, while supporting greater inclusion of smallholders and rural workers. In this emerging vision, agriculture assumes a prominent role in the development agenda.
Now, Kwara State is becoming the cynosure of all eyes in Nigeria as a result of the energy revolution in the production of biofuels as a means of enhancing energy security that the Bukola Saraki administration had kick-started. These are policies that promote greater production of sugarcane, maize, and cassava for ethanol, as well as oilseeds for biodiesel. As agriculture intensities and diversifies, and economies develop, well-functioning rural labour markets and migration are crucial in reducing rural poverty and reducing rural-urban income disparities.
On the worker’s side, special attention is needed to provide, among others,training programme enabling workers to secure good jobs on the demand side, policies can be developed to favour employment creation through better investment climates and decentralization of economic activity toward rural areas.
Agricultural growth can reduce poverty directly, by raising farm incomes, and indirectly, through labour markets and by reducing food prices. Increased farm productivity boosts farm incomes; if poor smallholders participate in this agricultural growth process, they will benefit.
Agricultural growth also reduces poverty through labour markets, to the extent that it creates employment opportunities for the poor.
That agriculture has special poverty - reducing power is borne out by econometric studies showing it’s comparative advantage in this area. Across the country estimates show that overall GDP growth originating in agriculture is, on average, at least twice as effective in benefiting the poorest half of a country’s population, as growth generated in non-agricultural sectors.
Bamishe sent this piece via
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