In China, for example, half of the decline in poverty occurred in the first half of the 1980s when agriculture was given priority. We see this pattern repeat itself time and time again. When agricultural development was placed high on the development agenda, poverty declined rapidly in Vietnam, Thailand, Bangladesh, and many other countries in Asia and the Pacific.
The neglect of agriculture has put enormous pressure on farmers. Low yields, high input prices and low market prices for agricultural produce have led to a vicious cycle of low income and stagnation.
Massive scaling down of public services, particularly in irrigation and agricultural extension services, has dealt a blow to the sector. The distress in rural areas is reflected in rising farm indebtedness and suicides in many countries. The figures are tragic and astounding – in India alone, almost 87,000 farmers committed suicide between 2001 and 2005.
Unless the neglect of agriculture is addressed, poverty will not be reduced significantly in the region, and inequalities will widen further. In turn, this will jeopardize the economic prospects of our countries and the social cohesion of our communities.
The Economic and Social Survey of Asia and the Pacific 2008 shows that improving agricultural labor productivity could have a profound impact on poverty reduction.
For example, raising the region's average agricultural labor productivity to the level seen in Thailand would take 218 million people – a third of the region's poor – out of poverty. India, China, Bangladesh and Indonesia would gain the most.
Large gains in reducing poverty are also possible through the comprehensive liberalization of global agricultural trade, with the potential to take another 48 million people out of poverty. Our research also shows that raising productivity in agriculture will reduce income inequality significantly.
If more reasons were needed for our call to focus on agriculture, then one need only look at the rising food prices that are being witnessed across the region. With the demand for biofuel apparently unstoppable, the region needs a renewed and urgent effort to revive its agricultural sector to increase food production and stop food prices from spiraling even further.
ESCAP's Survey shows that the strategy required to make agriculture economically, socially and ecologically viable – and thus returning it to its rightful place in reducing poverty and inequality – is a straightforward one.
Quite simply, agriculture needs another revolution. Increasing agricultural productivity should be at the center of this new approach. It is crucial that the sector's productivity is improved through increased investment in research and development, human capital, extension services, irrigation and rural infrastructure. Land tenure systems need to be revamped, where necessary.
