Effect of Agricultural Growth on Poverty Reduction, its Importance and Suggestions

Abstract

The main aim of this study is to conducts a valuable review of the literature on agricultural development, its role for the reduction of poverty and its relationship. The importance of agriculture for the reduction of poverty derives from three main facts; first in the developing countries poverty is disproportionately high and still relay on the agriculture development for income generation, secondly most poor people households rely typically on agriculture for jobs or farming and thirdly the poor people have limited assets and also having no skills like other than manual labour to sell. Generally poor people are facing many obstacles and troubles in connecting with non-agricultural economy for jobs. Agricultural growth, social and economic exclusion provide further opportunities for the reduction of poverty. For the reduction of poverty, agricultural growth is particularly effective and for non-agricultural growth is more extremely effective for reducing poverty. Economic growth ensures the indirect prospective to improve poverty, as a result of simultaneous increases in employment opportunities and labour productivity. Different valuations shows that the growth in agricultural productivity of small farmers on average, at least twice as effective in benefiting the poorest half of a country’s population as growth generated in non-agricultural sectors. An improvement in water management is also another effective way to help for reduction of poverty among farmers. With restored water management, farmers can improve agriculture productivity and potentially move beyond subsistence-level of farming. A positive process of economic change and diversification of both livelihoods and national economies is the key to sustained poverty reduction. Agriculture development has in many places connected wider with economic growth and the rural poor, increasing their productivity and incomes.