Agriculture is the key to inclusive economic growth that reduces poverty in poor countries.
Globally on average, every $1 invested in agricultural research and extension generates a 43% return to GDP. In developing countries with significant yield gaps, the returns to GDP are even greater.
Every $1 invested by the Rwandan government in agriculture research generates $3 in GDP.
Gains are greater for locally consumed crops:
Source: Diao et al. Agricultural Growth and Investment Options for Poverty Reduction in Rwanda. IFPRI. 2010.
Given that in many developing countries, 40% or more of hte population are farmers, agriculture-led growth generates higher reductions in poverty than any other industry.
% of Population Working in Agriculture in 5 Low Income Countries
Source: World Bank. World Development Report 2008. Agriculture for Development
"Every dollar invested in agriculture is twice as effective in reducing poverty as investing in non-agricultural sectors."
Source: World Bank 2008 World Development Report