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China’s economy has experienced remarkable growth since economic reform initiated in 1979. The rapid economic growth has been associated with unprecedented progress in poverty alleviation. Based on China’s official poverty line, the absolute level of poverty incidence fell from 33 percent in 1978 to less than 3 percent in 2004. Even based on World Bank’s US$1/day (in PPP terms) poverty line, rural poverty incidence also fell from more than 30 percent in the early 1990s to about 8 percent in 2004. While past accomplishments are impressive, there are still great challenges ahead. Income disparity rose with economic growth. There is also [...]

There are four main reasons for which agriculture in sub-Saharan Africa (SSA) deserves more public support.  First is a moral imperative: SSA governments cannot and should not ignore a sector on which about 70 percent of their population directly depend for their livelihoods, if they are serious about their commitment to MDG1. Second, in spite of their generally poor performance, SSA countries do not have any realistic strategic option that they can rely upon for achieving sustainable economic development, other than agriculture. Third, there is evidence that appropriate policies and direct public sector investment have combined to trigger agriculture sector-led [...]

El objetivo de las Directrices voluntarias es proporcionar orientación práctica a los Estados respecto de sus esfuerzos por lograr la realización progresiva del derecho a una alimentación adecuada en el contexto de la seguridad alimentaria nacional, con objeto de alcanzar los objetivos del Plan de Acción de la Cumbre Mundial sobre la Alimentación. Las Directrices constituyen un instrumento adicional para luchar contra el hambre y la pobreza y acelerar la consecución de los objetivos de desarrollo del Milenio. Las Directrices voluntarias representan el primer intento de los gobiernos de interpretar un derecho económico, social y cultural y de recomendar medidas que [...]

This analytical tool illustrates how some simple poverty measures may be linked with dominance conditions between particular types of curves. This strongly resembles the dominance conditions already set out in the case of Lorenz curves1. In particular, dominance conditions will be derived for the headcount ratio and for the Foster-Greer-Thorbecke (FGT) measures showing that, under certain conditions, the poverty line specification is not necessary. This module also introduces the concept of the Three I’s of Poverty (TIP) curve. As a way to analyse poverty, this module is based on a different approach to poverty measurement. Nor does it recourse to [...]

This paper examines the main characteristics of agricultural inputs and marketing services, including factors affecting demand and supply for major categories of services, namely fertilizers and chemicals, seeds and planting materials, agricultural machinery and equipment, and crop marketing. The main sources of market failure are outlined. The conceptual framework which underpin the main approaches to decentralization of these services and key factors that need to be considered are next discussed. The importance of the regulatory role and adoption of a regulatory strategy are highlighted. Policy implications, in terms of possible options for decentralization (divestment, deconcentration, devolution and establishing partnerships), and [...]

This paper first examines the characteristics of rural financial services, including demand and supply factors in rural financial markets. It draws attention to past failures of centralized and directed rural credit services, and the emergence of a new broader vision of rural financial services, based on liberal economics and decentralization policies. The conceptual framework for reform of rural financial services is discussed, and important principles of decentralization reiterated. Policy implications, in terms of options for decentralization, and the roles and responsibilities of the government are next examined. Various options which might be considered under deconcentration, devolution, and diversification of ownership of [...]

This issue paper provides an overview of “Decentralization of Agricultural Services”. It first explains the range and importance of agricultural services; the traditional role that governments had assumed in their provision; consequences of public sector interventions; and the perceived need for institutional reform, including a reduced role for central government in service provision. It then examines the conceptual framework for policy decisions. Aspects highlighted are the economic rationale for government intervention; functional responsibilities for service provision; and challenges and risks in diversifying provision. Options for reforming agricultural services and how the reform process would need to be planned and managed [...]

This issue paper provides an overview of “Decentralized development in agriculture”. It explains what decentralization is about, including who is involved and the various forms and dimensions of the process. There are various practical expressions of decentralization in agricultural and rural development, including country efforts at: reform of agricultural services; natural resource and environmental management; and development or refinement of planning and management processes. This paper next examines the potential benefits of decentralization, possible drawbacks and risks associated. Conceptual and practical issues that have an important bearing on policy decisions on decentralization are discussed. This focuses on the changing roles and relationships, posing important questions on whether there is need for [...]

This analytical tool illustrates on what basis a poverty index should be chosen. In particular, it discusses the desirable properties that a poverty index should respect. These desirable properties are called axioms. Four classes of axioms will be discussed: focus axioms  monotonicity axioms transfer axioms symmetry axioms As users will see, there is no single measure of poverty that respects all axioms at the same time. Choosing a poverty measure may therefore imply a trade-off between different aims. This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to [...]

This analytical tool illustrates how Lorenz Curves can be used to identify the best income distribution on social welfare grounds, within a set of alternative income distributions generated by different policy options. After highlighting some drawbacks of using specific functional forms of the Social Welfare Function (SWF) to infer welfare judgments, the rationale for using Lorenz Curves to rank income distributions is provided in a step-by-step procedure and is illustrated with some simple numerical examples. This module also points out the limitations of Lorenz dominance and highlights how, in some circumstances, it is necessary to use Generalised Lorenz (GL) Curves. Generalised [...]