November 14, 2007  - Even though poverty has fallen dramatically in the East Asia region, the widening gap between rural and urban incomes in many countries is one of the main reasons for increasing inequality at the national level.

The poverty headcount rate at the US$2-a-day level is estimated to have fallen to about 27 percent, down from 29.5 percent in 2006 and 69 percent in 1990, but more than 90 percent of the poor in the East Asia region live in rural areas now, the vast majority earning their living in agriculture. As the special focus section of the latest East Asia Update report explains, poverty has now become an overwhelmingly rural problem.

The “Agriculture for Development in East Asia” section indicates that governments in the region are pursuing policies aimed at addressing this income divide by renewing their focus on rural and agricultural development policies, while also exploring ways to strengthen the development of human capital.

How to overcome the rural-urban divide while sustaining growth is one of the key questions put forth in the latest World Development Report 2008. Based on the report's recommendations, this special focus discusses the emerging policy agenda in East Asia  by recommending a three-pronged approach by:

• focusing on increasing agricultural growth drawing on institutional and technological innovations;
   
• fostering rural non-farm employment; and
   
• poor area development programs through a combination of service delivery, education for migration, and strengthening safety nets for those staying behind.

This agenda emphasizes a multi-sector, decentralized, and participatory approach, fostering a better investment climate with greater involvement of the private sector, and increasing rural infrastructure and rural education, as some of the entry points for implementation.