1. PROMOTING PRO-POOR GROWTH Agriculture

2. DAC POVERTY REDUCTION NETWORK (POVNET) 2003-2006
The 2001 DAC Guidelines on Poverty Reduction showed that poverty has multiple and interlinked causes and dimensions: economic, human, political, socio-cultural, protective/security.
Since 2003 the Development Assistance Committee (DAC) through its Network on Poverty Reduction (POVNET) has focused its work on one dimension of that bigger picture – reducing economic poverty through pro-poor growth.
The work of POVNET since then has given priority to addressing strategies and policies in areas that contribute to pro-poor economic growth such as infrastructure, private sector development and agriculture.
Task teams were set up and met over a period of two and a half years to improve understanding of the constraints and opportunities in these areas with a view to developing policy guidance for donors.
Focus on the economic dimension of poverty

3. POVNET: PRO-POOR GROWTH
A pace and a pattern of growth that enhances the ability of poor people to participate in, contribute to and benefit from growth
This slide present the core message on POVNET’s view on pro-poor growth.
What is pro-poor growth?
Pro–poor growth focuses attention on the extent to which poor women and men are able to participate in, contribute to and benefit from growth, as measured by changes in the incomes of the households in which they live and the assets they and their children acquire to earn higher incomes in the future.
When may growth be termed pro-poor?
There are different views on this issue. For some, what matters is whether the incomes of the poor are rising relative to the incomes of the non-poor and hence inequality is falling. The merit of this perspective is that it focuses attention on whether the poor are benefiting more or less proportionately from growth and whether inequality, a key determinant of the extent to which growth reduces poverty, is increasing or falling. For others, what matters most is the absolute rate at which the incomes of the poor are rising. For example, are the incomes of the poor rising fast enough to reduce the number of people living below the international poverty line in accordance with MDG 1:1?
The relative and absolute concepts of pro-poor growth are both relevant, and complement each other in the analysis of growth processes from a pro-poor perspective. In fact, the tools needed to analyse how the poor are participating in and benefiting from growth may be used with either definition.
See further chapter 1.2 in the “Key Policy messages”. Analytic tools are further described in Box 1.

4. DONORS NEED TO RETHINK AGENDAS IN AREAS IMPORTANT TO PRO-POOR GROWTH

5. AGRICULTURE: A “SECTOR” THAT INCLUDES
households engaged in a wide range of production on land, water and forests
cultivation and harvesting
processing, trading, extension services and research
institutions and markets relevant to the sector
© International Labour Organization/Maillard

6. AGRICULTURE STIMULATES PRO-POOR GROWTH
Impacts directly on rural incomes
Increases demand for consumer goods and services and thus for labour
Stimulates growth in the non-farm economy
Lowers and stabilises food prices
Expands livelihood opportunities

7. IMPROVED AGRICULTURAL PRODUCTIVITY MATTERS FOR REDUCING POVERTY
10% increase in crop yields leads to 6-10% fewer people living on less than $1 a day
Incomes of farmers/landless labourers in South India from rose by 90% -125%
1% increase in agricultural GDP/cap led to 1.6% gain in income/cap of poorest 20% of population in 35 countries

8. THE CHANGING CONTEXT FOR AGRICULTURE
Decline in public sector support
Lost access to key inputs and services
Markets more concentrated, integrated and demanding
OECD market distortions
HIV/AIDs, conflict and climate change
Resource degradation

9. LINKING FIVE “RURAL WORLDS”
Regional and International Markets
Globally competitive agriculture enterprises 1 2
Producers for traditional markets 3 4
Subsistence Producers 5
Landless labourers
Chronically poor
Domestic Markets

10. WHAT’S DIFFERENT ABOUT AFRICA?
Productivity has stagnated or fallen
Weathered soils and erratic rainfall
Absence of primary food crop
Dominant role of women – limited access to resources
Poor transport and other infrastructure
© International Labour Organization/Crozet

11. PRINCIPLES OF THE NEW AGENDA
Recognise heterogeneity and country contexts
Build institutions and empower stakeholders
Support pro-poor international actions
Foster country-led partnerships

12. PRIORITIES FOR ACTION
Build household assets, reduce market barriers and expand markets
Promote diversified livelihoods on and off the farm
Tackle risk and vulnerability through insurance and productive safety nets

13. PRODUCTIVITY GAINS AND IMPROVED MARKET OPPORTUNITIES DEPENDS ON
secure and equitable access to land and water resources
development of rural financial resources
access to information and technology developments
improved physical access and reduced transactions costs
capacity building for producers to engage in marketplaces
© International Labour Organization/Crozet

14. PROMOTING DIVERSIFIED LIVELIHOODS IS CRITICAL
Non-farm share of rural incomes is large: 60% in S. Asia, 50% in SSA and 40% in L.A.
Backward and forward linkages on and off the farm contribute to pro-poor growth
“Extended” agriculture is about 30% of GDP in 8 L.A. countries (7% from agriculture alone)
Strong links between poverty reduction and diversification in and outside of agriculture
© International Labour Organization/Crozet

15. TACKLING RISK AND VULNERABILITY PROMOTES PRO-POOR GROWTH
Poor rural households are vulnerable to price volatility, droughts, floods, pests and sickness
Better risks handling helps to maintain assets and get higher returns
Weather-based or commodity risk management schemes, land registration programmes and irrigation infrastructure help reduce risk and vulnerability
© International Labour Organization/Maillard

16. IMPLICATIONS FOR DONORS
Improve diagnostic capacity to better understand diversifying livelihood needs of rural poor
Tailor strategies to local context and different “rural worlds”
Foster inter-ministerial dialogue and co-ordination mechanisms
Support efforts to establish and improve monitoring frameworks