Knowledge

Strong links to markets for poor rural producers are essential to increasing agricultural production, generating economic growth in rural areas and reducing hunger and poverty. Improving these links creates a virtuous circle by boosting productivity, increasing incomes and strengthening food security.

“The problem today is that no matter how hard you work, it’s never enough to feed the family…” “For about a year, perhaps more, there have been no rains… That is why people are suffering…” “Without education a person can do nothing…” “The men have left to work outside the village. The main labour force here is women…” These are first-hand accounts of just a few of the men, women and young people who were interviewed for this report. Their stories give us vital insight into what it is like to live in today’s changing reality of rural poverty. Listening to their experiences – and learning from them – is essential if we are to comprehend that reality. And it is the first step in identifying appropriate and effective solutions to turn rural areas from backwaters into places where the young people of today can find opportunities to work their way out of poverty, and where they will want to live and to raise their own children. We need a clear understanding of what the face of poverty looks like now, a basket of practical solutions to today’s myriad challenges and a coherent approach for tackling the evolving challenges of the future. This report provides all three. IFAD’s Rural Poverty Report 2011 – New realities, new challenges: new opportunities for tomorrow’s generation, is an in-depth study of rural poverty. The findings in the report come from a collaboration among dozens of experts in the field of poverty reduction – both inside and outside IFAD. They also come from the poor rural people themselves.

Drawing on a literature review, this report examines a range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions. A business model is the way in which a company structures its resources, partnerships and customer relationships in order to create and capture value – in other words, a business model is what enables a company to make money. Business models are considered as more inclusive if they involve close working partnerships with local landholders and operators, and if they share value among the partners.

Recent years have witnessed a renewed interest in public and private-sector investment in agriculture. Concerns about longer-term food and energy security and expectations of increasing returns from agriculture underpin much recent agricultural investment. Some have welcomed this trend as a bearer of new livelihood opportunities in lower- and middle-income countries. Others have raised concerns about the possible social impacts, including loss of local rights to land, water and other natural resources; threats to local food security; and, more generally, the risk that large-scale investments may marginalise family farmers. The recent debates about “land grabbing” – the media characterisation of large-scale farmland acquisitions in lower- and middle-income countries – illustrate these trends and positions. 

Many rural development efforts in Western and Central Africa have focused on how to improve poor farmers’ yields. But better yields have not always translated into greater incomes. As the use of cassava has grown, the role of efficient markets and a better coordinated cassava chain have become increasingly important to producers and processors who depend on a stable cassava sector for income.