what happens when an economy transform from an agriculture one to industrial ?
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way to improve the lives of millions in poverty is to support agriculture in developing countries. Most of the world’s poor are farmers, and those who are not spend much of their income on food. Transforming a country’s agriculture sector can create jobs, raise incomes, reduce malnutrition, and kick-start the economy on a path to middle-income growth. In fact, almost every industrialized nation began its economic ascent with an agricultural transformation. Recent examples include Brazil, China, and Vietnam, each of which at least doubled the value of its agriculture sector within 20 years of starting its transformation. Many other countries in Africa, Asia, and Latin America are earlier on the path of transformation.
For some, agricultural transformation has not advanced as planned or has stalled. Navigating the complexity of a transformation is invariably tough for governments, even though they may prioritize agricultural investment and recognize how important it is to get right. This is especially true in an era in which governments are seeking agricultural transformations that meet multiple goals simultaneously. In addition to traditional economic development and poverty reduction goals, governments are also focusing their agricultural transformation plans on Sustainable Development Goals (SDGs) by considering, for example, climate-smart strategies, women’s economic empowerment, and biodiversity.
The drivers of agricultural transformation are multidimensional, interrelated, and change over time, but they can be organized into categories to provide a better opportunity for pragmatic diagnostics and decision making on national priorities. After running more than 30 country diagnostics, we found that the drivers fall into three main categories. First, there are elements of “transformation readiness.” Changes to a country’s institutional framework, governing mechanisms, and political environment can significantly influence the likelihood of accelerating an agricultural transformation. Second, the quality of the national agricultural plan or strategy is critical. Last, there are drivers related to delivery mechanisms. This category focuses on what is needed to translate the national agricultural plan into on-the-ground impact. This includes the ways in which countries manage decision making and progress against targets as well as how they use change agents to support the large-scale behavior change among smallholder farmers that underpins a successful agricultural transformation.
In this article, we consider the second and third categories. We focus on six core elements of a national agricultural plan (“what to do”) that increase the odds of a successful rural transformation, and then reflect on elements of the on-the-ground delivery of an agricultural transformation (“how to do it”). In a companion article, “Readiness for agricultural transformation,” we identify a set of common institutional, organizational, and political components that increase the likelihood of success for a government’s good agricultural transformation policies and investments.
What to do: Six core elements of an agricultural transformation plan
Although rural families often make their living from many different types of work, improvements in farming have proved to be the path toward widespread, poverty-reducing growth in the rural economy. Successful agricultural transformations have focused on the farming household, providing opportunities for farmers to earn a better income. For some, that will mean raising farm productivity or shifting the mix of production to include higher-value crops and livestock. For others, the right choice will be to do less farming and take advantage of employment options off the farm. As farmers have more money in their pockets, they spend more in the local economy, creating jobs, opportunity, and more demand for agricultural goods. The question is how to accelerate, sustain, and scale these growth cycles. For that, a well-crafted agricultural plan is required as part of a country’s overall economic development approach. There are six elements that distinguish a superior agricultural plan.
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