Number 3, June 2008
briefing paper
Ending Hunger:
The Role of Agriculture
by Charles Uphaus
www.bread.org
Official Development Assistance (ODA) to Agriculture, 1980-2005
20%
10,000
US$ million
(commitments* constant 2004)
8,000
% of total ODA
15%
6,000
10%
4,000
5%
2,000
0%
1980
1985
Bread for the World Institute provides
policy analysis on hunger and strategies
to end it. The Institute educates its advocacy network, opinion leaders, policy
makers and the public about hunger in
the United States and abroad.
0
1990
1995
2000
2005
*Commitments is a firm obligation expressed in an agreement or equivalent
contract and supported by the availability of public funds, undertaken by the
government, an official agency of the reporting country or an international
organization, to furnish assistance of a specified amount under agreed
financial terms and conditions and for specific purposes, for the benefit of a
recipient country.
Source: OECD International Development Statistics—Creditor Reporting System.
Key Points
• Increasing agricultural productivity in developing countries is necessary to
reduce hunger and poverty, especially in the face of rapidly rising food prices.
• Agricultural and rural development strongly determines whether a developing
country is likely to achieve broad-based economic growth and the Millennium
Development Goals.
• Declining rates of poverty and hunger in Asia, where agricultural growth helped
raise incomes of poor people in rural communities, provides valuable lessons for
sub-Saharan Africa.
• In recent decades, rich and poor countries alike have diverted resources away
from promoting agricultural growth in developing countries, disadvantaging
smallholder farmers.
• Disinvestments in agriculture have been compounded by protectionist trade
and agriculture policies in rich countries. New investments would be more
effective if these policies were reformed.
Charles Uphaus is a policy analyst for Bread for the World Institute.
Abstract
A spike in global food prices has
increased hunger. A prolonged period of higher prices threatens to
stall or reverse progress in achieving
the Millennium Development Goals
(MDGs).
Of the 862 million poor people
around the world who are chronically
hungry, 75 percent live in rural areas
and depend on agriculture for their
earnings. Increasing agricultural productivity in poor countries is critical
to reducing hunger. It increases food
supply, which lowers food prices.
Poor people benefit the most because
they spend a much greater share of
their income on food. Increasing the
productivity of smallholder farmers
also raises their incomes, improving
their ability to cope.
Over the last twenty years, donors
have been partners in a progressive
decline in support for agriculture
and rural development. A substantial increase in funding for agriculture is needed but aid by itself won’t
be enough. Reforming trade distorting policies in rich countries is also
necessary. In addition, developing
countries themselves have to provide
supportive policies, along with additional investments, for donor resources to be effective.