-- Related Links -- Agriculture & Rural Development

At a Glance – The Challenge

·         Seventy-five percent of the world’s poor are rural, most are involved in farming, and agriculture remains fundamental in the 21st century for poverty reduction, economic growth, and environmental sustainability. 

·         Agriculture accounts for one-third of GDP and three-quarters of employment in Sub-Saharan Africa. 

·         Worldwide, almost 80 percent of freshwater is used for agriculture. 

·         Agriculture is more vulnerable to climate change than any other sector. 

·         Global food prices remain volatile and have climbed to near record levels.

·         The World Bank Group estimates that rising food prices have pushed about 44 million people into poverty since June 2010.  Another 10 percent rise in the food price index could push 10 million more people into poverty.

The World Bank Response

Improving agricultural performance is the most powerful tool we have available to reduce global poverty and hunger.  Agricultural development is an especially pro-poor source of economic growth — about two to four times more effective in raising incomes among the very poor than growth in other sectors. 

The World Bank Group is boosting agriculture and agriculture-related investment to some $6 to $8 billion a year from $4.1 billion in 2008.   Seventy-one percent of our agriculture lending goes to increasing productivity.   Twenty percent is for improving access to markets.

The Bank’s Agriculture Action Plan emphasizes increased support in five areas: raising agricultural productivity; linking farmers to markets; reducing risk and vulnerability; improving nonfarm rural employment; and making agriculture more environmentally sustainable, as well as a source of positive environmental services.

Key Activities

Response to Global Food Price Crisis.  In response to the 2008 food crisis, the World Bank launched the Global Food Price Crisis Response Program (GFRP) to provide immediate relief to countries hard hit by high food prices.  So far, GFRP has reached 40 million people in 44 countries - through $1.5 billion in emergency support – directly for farming, , seeds and fertilizer, and for social safety nets such as emergency school feeding programs.  More information is available in the Global Food Crisis Issue Brief.

Global Agriculture and Food Security Program.  The Bank administers the Global Agriculture and Food Security Program (GAFSP), which supports country-led agriculture and food security plans and helps to promote investments, especially for smallholder farmers.  So far, six countries and the Gates Foundation have pledged about $ 975million over the next three years, with $ 571 million received.  More details on GAFSP are available in the Global Food Crisis Issue Brief.

Agriculture and Climate Change.  Climate change disproportionately affects the rural poor.  The World Bank supports the use of “climate-smart” farming techniques such as mulching, crop residue management, and soil and water conservation measures, which increase farm productivity and incomes, and make agriculture more resilient to climate change, while also contributing to mitigation.  This results in a “triple win” for agriculture, the environment, and food security.

Community Driven Development.   This approach gives control over planning decisions and investment resources to community groups and local governments.  Our rural livelihoods projects promote inclusive growth and address the challenges of reducing rural poverty by supporting representative institutions of the poor in rural areas.  For example, the Sujala project in Karnataka, India, is boosting agricultural competitiveness by organizing communities to manage their watershed and natural resource base, while introducing new crops and technologies to help increase production options.

Supporting Sustainable Fisheries.  The livelihoods of about 200 million people rely on fisheries, aquaculture and associated activities.  More than 20 percent of the world’s 38 million full-time fishers earn less than $1 per day.  The World Bank has established two partnerships, the Global Program on Fisheries (PROFISH) and the Alliance for Responsible Fisheries (ALLFISH), which emphasize sustainable fisheries management and improved governance. 

Water for Agriculture.  Meeting the ever-rising demand for food, while increasing farmer incomes, reducing poverty, and protecting the environment - all from an increasingly constrained water resource base - are the main challenges facing agricultural water management.  The World Bank is increasing investments that target the policy, technical, and governance aspects of agricultural water use.  Our efforts include: increasing emphasis on promoting smallholder irrigation development, in particular in West Africa; improving wastewater use in agriculture; and achieving real water savings while minimizing impacts on agricultural production and incomes.

Cultivating Innovation.  Efforts to apply an innovation systems approach have focused on developing operational guidance, tools, and investment options.  As well, there is more lending to agricultural research and agricultural services and agricultural competitiveness, with a specific focus on public-private partnerships, research consortia, and innovation funds.

Pro-poor sustainable livestock development.  Livestock is one of the few means of asset creation and escaping the poverty trap.  More than 600 million people depend on livestock as part of their livelihood.  The World Bank is implementing programs to better utilize livestock as a pathway out of poverty, make the sector more environmentally sustainable and, with a One Health approach, reduce disease risks, including those with pandemic potential.  

Land Tenure.  Inappropriate land policies are a serious constraint on economic and social development.  Actions to improve security, access, and transferability of land increase the value of household assets, generate higher levels of investment and agricultural productivity, and facilitate access to credit.  The World Bank provides operational support in these areas.

Responsible Agro-investment.  The Bank has worked with Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD) and United Nations Conference on Trade and Development (UNCTAD) and other stakeholders, to develop seven voluntary principles for responsible agro-investment that respects rights, livelihoods and resources. The Bank is working with countries and other stakeholders to translate these principles into practice. 

Rural Finance.  Access to key financial services such as savings, credit insurance and leasing and remittance facilities is scarce in rural areas of most developing countries – especially for the poor.  The World Bank contributes to private sector and rural market development by generating and disseminating knowledge on better access to financial services for smallholder farmers and poor rural households.  AgriFin, a World Bank initiative funded by the Bill and Melinda Gates Foundation, is working to demonstrate that providing financial services to smallholder farmers and other enterprises in rural areas can be a profitable business for financial institutions.

Agricultural Risk Management.  In developing countries, farmers, agro-enterprises, and governments can employ a range of technical, managerial, and financial approaches to reduce, mitigate, transfer, and cope with risks.  The World Bank supports the development and implementation of agricultural sector and supply chain risk management strategies in a growing number of developing countries.

For more information, please see: www.worldbank.org/ard

Media Contacts:

Amy Stilwell:  (202) 458-4906, astilwell@worldbank.org

Fionna Douglas: (202) 473-8913, fdouglas@worldbank.org

Robert Bisset: (202) 458-5191, rbisset@worldbank.org

Updated August, 2011