-- Related Links -- Agriculture & Rural Development

At A Glance

·         Improving agricultural performance is the most powerful tool we have available to reduce global poverty and hunger.

·         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 high with the 2011 annual index 24 percent higher than its average in 2010.

The World Bank Group’s Response

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 three percent of our agriculture lending goes to increasing productivity.  Twenty percent is for improving access to markets.  All of International Finance Corporation’s agricultural lending goes to agribusiness value chains.

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 & Results

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 47 countries - through $1.5 billion in emergency support, of which 82 percent has been disbursed – directly for farming, for example, 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, seven countries and the Gates Foundation have pledged about $1.1 billion over the next three years, with $612 million received.  More details on GAFSP are available in the Global Food Crisis Issue Brief. 

Climate Smart Agriculture.  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.  For example, in Ethiopia’s Humbo Assisted Natural Regeneration Project, developed by World Vision and the World Bank, more than 2,700 hectares of degraded land has been restored and protected, and production of wood and tree products such as honey and fruit has increased, which contributes to household budgets.  The protected areas of the forest now also act as a ‘carbon sink,’ absorbing and storing greenhouse gases from the atmosphere to help mitigate climate change.

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 240 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 US$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.  Worldwide, almost 80 percent of freshwater is used for agriculture.  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.

Sustainable Forests.  The World Bank Group is the largest source of multilateral financing for forests, which cover 25-30 percentof the earth’s land surface, and are an important safety net for rural populations in times of economic or agricultural stress. About 350 million people who live within or close to dense forests depend on them for their subsistence and income.  In Albania, a project that integrated forest, pasture and agriculture management helped to support increases in income earned from forest and agricultural activities in communal areas and significantly reduced erosion.   

Cultivating Innovation.  For farmers and entrepreneurs to cope with food price volatility and climate change, to meet rising demand and to be able to seize new business opportunities―they must innovate.  In addition to increased lending to agricultural research and agricultural services and agricultural competitiveness, the World Bank has developed operational guidance, tools, and investment options to encourage an agricultural innovation systems approach. 

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 implements 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. The Afghanistan Horticulture and Livestock Productivity Project led to livestock mortality rates declining by 29 percent for large ruminants and 21 percent for poultry.

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.  World Bank support enabled Bolivia to demarcate and title approximately 2.8 million hectares of land, and helped Malawi facilitate access to land for over 15,000 families.

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.  For example, commodity supply chain risk assessments have been supported in 10 countries (cocoa in Ghana, coffee in Vietnam, Uganda and Cameroon, horticulture in Kenya, rice in Guyana, dairy in Uganda, and cotton in Mozambique).   

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

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

Updated: March 2012