May 20, 2016

CSIS – In a world that has become increasingly interconnected and chaotic, with more displaced persons since World War II, and with an array of humanitarian disasters that has outstripped the international community’s budgets and capacity to respond, why should global food security remain an imperative development priority? Why has the United States invested so heavily, to the tune of $5.6 billion over the past five years, in agricultural development and nutrition to reduce extreme poverty?

Agriculture’s Economic Power

Agriculture is the primary source of employment and income for 70 percent of the world’s rural poor, and it contributes more than a third of gross domestic product (GDP) in many of the least developed countries. In light of evidence that GDP growth originating in agriculture can be four times more effective than growth in other sectors in raising incomes of the extremely poor, the economic leverage of agriculture for development is hard to dispute.

Aligning foreign assistance with country-led strategies for agricultural growth is the most effective approach to achieving results for vulnerable smallholder farmers, their families, and their communities. Government ownership is critical to sustaining development investments and to ensuring a sound policy environment for private-sector engagement. In order for agriculture to reach its potential to generate employment, raise smallholder incomes, and catalyze markets, both the will of country leadership to dedicate resources and the ability of local and international private companies to invest along the value chain are required. In some cases, this translates into tough policy reforms that take time to understand, to implement, and to enforce.

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