Agriculture Investments In Developing Countries Reach New High
World Bank Strategy Has Contributed to Reversing Downward Trend
Press Release No:2006/259/ESSD
Contacts:
Sergio Jellinek (202) 458-2841
sjellinek@worldbank.org
Kristyn Schrader (202) 458-2736
kschrader@worldbank.org
WASHINGTON, February 6, 2006—A newly-released status report shows that
World Bank lending to the agriculture sector increased sharply to $2.1 billion in the last fiscal year. With 65 new projects that had agriculture sector components, FY05 (July 2005- June 2005) lending showed a 40 percent increase over FY04 lending of $1.5 billion. Among agricultural sub-sectors, the irrigation and drainage sub-sector was the strongest, accounting for just over $1 billion, or almost 50 percent of lending, and an increase of $300 million over FY04 figures.
“With 70 percent of the world’s poor living in rural areas and relying on agriculture as their major source of income,” says Ian Johnson, World Bank Vice President for Sustainable Development, “strengthening the agriculture sector has strong implications for the growth of developing country economies.”
© 2006 The World Bank Group
World Bank Strategy Has Contributed to Reversing Downward Trend
Press Release No:2006/259/ESSD
Contacts:
Sergio Jellinek (202) 458-2841
sjellinek@worldbank.org
Kristyn Schrader (202) 458-2736
kschrader@worldbank.org
WASHINGTON, February 6, 2006—A newly-released status report shows that
World Bank lending to the agriculture sector increased sharply to $2.1 billion in the last fiscal year. With 65 new projects that had agriculture sector components, FY05 (July 2005- June 2005) lending showed a 40 percent increase over FY04 lending of $1.5 billion. Among agricultural sub-sectors, the irrigation and drainage sub-sector was the strongest, accounting for just over $1 billion, or almost 50 percent of lending, and an increase of $300 million over FY04 figures.
“With 70 percent of the world’s poor living in rural areas and relying on agriculture as their major source of income,” says Ian Johnson, World Bank Vice President for Sustainable Development, “strengthening the agriculture sector has strong implications for the growth of developing country economies.”
This increase was led by a $700 million increase in agricultural lending over FY04 levels in the South Asia Region, reaching $955 million in FY05, mostly concentrated in two water projects in India – the “Maharashtra Water Sector Improvement Project” and “Madhya Pradesh Water Sector Restructuring Project” which accounted for $650 million in sector lending.
Kevin Cleaver, Director of Agriculture and Rural Development, explains that, “After three years of implementation of the Bank’s new strategy, this report gives a sense that the trend of declining investments in this sector is being reversed. The prognosis for the future is a sustained level of lending, with further focus on low income countries.”
Agricultural growth as the cornerstone of poverty reduction
In many poorer developing countries, agriculture is the principle source of overall economic growth. Agriculture employs nearly one-half of the labor force in developing countries. Indeed, a high share of rural communities and especially the rural poor are directly or indirectly dependent on agriculture through farming, food processing, fishing, forestry, and trade.
The Agriculture and Rural Development Strategy – Reaching the Rural Poor, outlines a detailed program for reinvigorating the international community’s engagement in agriculture and rural development. The Strategy’s main thrust is to integrate the needs of the rural poor in national policy investment programs. Simultaneously, it advocates to reform industrial country agricultural trade and aid policies.
For more information, please see the website:
www.worldbank.org/rural
Kevin Cleaver, Director of Agriculture and Rural Development, explains that, “After three years of implementation of the Bank’s new strategy, this report gives a sense that the trend of declining investments in this sector is being reversed. The prognosis for the future is a sustained level of lending, with further focus on low income countries.”
Agricultural growth as the cornerstone of poverty reduction
In many poorer developing countries, agriculture is the principle source of overall economic growth. Agriculture employs nearly one-half of the labor force in developing countries. Indeed, a high share of rural communities and especially the rural poor are directly or indirectly dependent on agriculture through farming, food processing, fishing, forestry, and trade.
The Agriculture and Rural Development Strategy – Reaching the Rural Poor, outlines a detailed program for reinvigorating the international community’s engagement in agriculture and rural development. The Strategy’s main thrust is to integrate the needs of the rural poor in national policy investment programs. Simultaneously, it advocates to reform industrial country agricultural trade and aid policies.
For more information, please see the website:
www.worldbank.org/rural
© 2006 The World Bank Group
