Impact on Society - and Poverty reduction

Agriculture has a multi-faceted and decisive impact on African society; economically, socially, and politically. Africa remains, to a great extent, an agricultural continent, and increased productivity is the basis of economic growth in most countries the core element of the battle against poverty and the struggle for development.

Economically, agriculture is considered the very engine of growth in Africa – and economic growth is deemed necessary to uplift the continent from poverty and underdevelopment. Socially, agriculture still plays an enormous role in countries where up to 80 % or so of the population is rural. Agriculture is vital for their livelihood and must also provide an increasing urban population with food. Politically, agriculture has been neglected for years by most African states – and partly by international donors – due to an unrealistic belief in the rapid modernization of African society, with industry playing a paramount role. Today, it is acknowledged that the near stagnant economies in parts of Africa are largely a reflection of a stagnant agriculture. Consequently, African heads of states have pledged to support an agriculturally-led strategy and to increase their political support and budgetary allocations to the sector.

The Impact

Agriculture is still the backbone of many African societies, particularly in sub-Saharan Africa. Here, agriculture contributes 70–80 % of employment and about 30 % of GDP, with some countries being even more dependent on the sector, also for their foreign exchange earnings. The poor – and particularly women – depend directly on agriculture for their livelihoods and food security, in rural as well as urban areas.

Developing agriculture has wide-ranging impacts on African society in the short as well as long term. Agricultural development also has a decisive direct – and considerable indirect – impact on the struggle against poverty, and achieving the Millennium Development Goals (MDGs). In a special report, “Agriculture and Achieving The Millennium Development Goals”, the World Bank and the International Food Policy Research Institute (IFPRI), draw the close connection, particularly regarding MDG #1: Eradicate extreme poverty and hunger.

The report points out that about 70 percent of the MDGs’ target group live in rural areas, particularly in Asia and Africa, and, for most of the rural poor, agriculture is a critical component in the successful attainment of the MDGs. Even though structural transformations, with a desired diversification of rural economies away from strong dependence on agriculture, are important in the longer term, the report underlines that more immediate gains in poor households’ welfare can be achieved through agriculture, which can help the poor overcome some of the critical constraints. Thus, a necessary component in meeting the MDGs by 2015 in many parts of the world is a more productive and profitable agricultural sector.

Agriculture contributes to MDG1 on eradicating extreme hunger and poverty by providing agriculturally led economic growth and improved nutrition. Furthermore, in low-income countries, such as the sub-Saharan African states, economic growth, which enables increased employment and rising wages, is considered the only means by which the poor will be able to satisfy their needs sustainably.

The WB/IFPRI report points out the crucial impact of agriculture on MDG1 (hunger and poverty): “Improving the productivity of and the economic returns of agriculture for farming households will have immediate effects in eradicating extreme poverty and reducing hunger.”

Increased agricultural income will directly improve both household consumption levels today, and household asset levels to improve production and better weather economic shocks in the future. Increased food production will lead to real reduction in food prices, which will improve the purchasing power of the poor throughout the economy. “Agriculture,” the report states, “can serve as the basis for broad pro-economic growth to bring about permanent reductions in poverty”.

The report further points out that MDG2 (universal education), has the most indirect linkage to agriculture: A more dynamic agricultural sector will change the assessment of economic returns to educating children, compared to the returns from keeping children out of school to work in household (agricultural) enterprises. Agriculture contributes significantly to MDG3 (empowerment of women) directly through the empowerment of women farmers and indirectly through reduction of time burden on women for domestic tasks.

Furthermore, agriculture contributes to MDG4 (reducing child mortality), by increasing diversity of food production and making more resources available to manage childhood illnesses, and to MDG5 (maternal health), through more diversified food production and higher-quality diets, and indirectly through increased incomes and thus, reduced time burdens on women.

The potential

There is great potential for increasing Africa’s agricultural output and food production, thereby reducing food insecurity and achieving higher growth rates. To increase production, the sector must be given due political priority and adequate financing.

For years, African governments have not given the agricultural sector sufficient priority in their budget allocations. Now, African leaders have vowed to dedicate around 10 % of public spending on agriculture, and make increased agricultural productivity the engine of economic growth. In 2003, African governments and international organizations jointly developed, within the framework of NEPAD, the Comprehensive Africa Agricultural Development Program (CAADP), putting small-scale farmers behind the wheel of the agricultural vehicle for growth, pointing out that “more than any other sector, agriculture can uplift people on a mass scale”.

The NEPAD goal for the sector is agriculturally led development which eliminates hunger and reduces poverty and food insecurity, thereby enabling the expansion of exports and putting the continent on a higher economic growth path. This is to be done within an overall strategy of sustainable development coupled with preservation of the natural resource base.

External resources: