How Agricultural Modernization Can Help In Poverty Reduction

By Jane Muia / Published August 25, 2022 | 4:33 pm




KEY POINTS

World Bank projections show that agriculture could be a major driver of poverty reduction in developing countries. In 2010, agriculture accounted for about 27 percent of GDP in low- and middle-income countries (LMICs) and employed nearly 60 percent of the labor force.


Mt Elgon agricultural region Farmers

KEY TAKEAWAYS


When agricultural productivity increases, farmers have more money to spend on goods and services, which stimulates economic activity in rural areas. And when agricultural growth contributes to overall economic growth, it creates opportunities for people in other sectors of the economy as well.


As the world progresses, many underdeveloped countries are left behind in terms of development and poverty reduction. While various factors contribute to this problem, one of the most significant is the lack of agricultural modernization.

In many third-world countries, agriculture is still done using traditional methods, which are not only inefficient but also often result in low yields. This, in turn, results in high levels of poverty and hunger, as well as a lack of income for those who are dependent on agriculture for their livelihoods.

However, there is hope that agricultural modernization can help to solve this problem. By introducing modern methods of agriculture, such as irrigation, mechanization, and the use of fertilizers and pesticides, farmers in third-world countries can increase their yields and produce more food for their families and communities.

In addition, modern agriculture can also help to generate income through the sale of surplus crops. With more income, families and communities can invest in other areas, such as education and health care, which can further contribute to poverty reduction.

While agricultural modernization is not a panacea for all of the problems faced by third-world countries, it can certainly play a role in reducing poverty and hunger. With the right policies and investments in place, agricultural modernization can help to transform the lives of many people living in poverty.

World Bank projections show that agriculture could be a major driver of poverty reduction in developing countries. In 2010, agriculture accounted for about 27 percent of GDP in low- and middle-income countries (LMICs) and employed nearly 60 percent of the labor force. The sector is also an important source of export earnings, accounting for 10–15 percent of exports in most low- and medium-income countries.

Why Agriculture is the most efficient means of reducing poverty quickly.

The sector employs a large share of the poor, particularly in Africa and South Asia, and agricultural growth has spillover effects on the rest of the economy, stimulating economic activity in rural areas and contributing to overall economic growth.

In Africa, for example, almost two-thirds of the population depends on agriculture for their livelihoods, and in some countries, such as Malawi, more than 80 percent of the population is engaged in agriculture. In South Asia, too, the sector is critically important, with an estimated 60 percent of the population dependent on agriculture for their livelihoods.

When agricultural productivity increases, farmers have more money to spend on goods and services, which stimulates economic activity in rural areas. And when agricultural growth contributes to overall economic growth, it creates opportunities for people in other sectors of the economy as well.

To realize agriculture’s potential to reduce poverty, however, countries need to invest in agricultural research and development, infrastructure, and education and training for farmers and other agricultural workers. In addition, policies and regulations need to be in place to support private sector investment in agriculture.






More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (360)
  • April 2022 (294)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (230)
  • December 2022 (4)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950