Agriculture and trade solutions for rural poverty

Nearly 70% of the world’s poor live in rural areas, and most depend on agriculture for their livelihoods (World Bank 2007b). In many poor countries, agriculture accounts for at least 40% of gross domestic product (GDP) and 80% of employment. Thus agriculture plays a potentially crucial role in poverty reduction strategies. During the Green Revolution (in the 1960s and 1970s), development and aid communities stressed the relevance of this sector as an engine of growth for countries with a high proportion of rural population. However, in the 1980s and 1990s the attention given to agricultural policies as catalysts for development and poverty reduction decreased significantly. Currently, agriculture is once again on the forefront of development debate, as recent work on the role of agriculture in development has confirmed the importance of this sector in reducing poverty (World Bank 2007b, von Braun 2007, Food and Agriculture Organisation 2005).