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Extra info for Agricultural Policies for Poverty Reduction
Programmes targeted at smallholders are common in emerging (and developed) economies. For example, both Brazil and Chile have programmes that seek to integrate smallholders into the commercial sector, notably via the 42 AGRICULTURAL POLICIES FOR POVERTY REDUCTION © OECD 2012 1. A STRATEGIC FRAMEWORK FOR STRENGTHENING RURAL INCOMES IN DEVELOPING COUNTRIES use of subsidised credit and investments in farm-level infrastructure. In few cases, however, have policy makers openly acknowledged that long-term competitiveness is not a realistic goal for the majority of smallholders and decided to focus their programmes on potentially viable operations.
Three-quarters of the world's dollar a day rural poor (nearly 600 million people) live in "transforming" economies, where poverty remains predominantly rural but agriculture contributes less than 20% to overall economic growth (World Bank, 2008). This imbalance points to the need for an integrated rural strategy, not just an agricultural one. 7 In the absence of formal rules that effectively regulate employment, property ownership, or land use, various types of informal rules and procedures are usually applied instead.
The sector produced cheap food for the growing urban population and was a major export earner, with rice exports prominent. This was achieved despite taxation of the sector to fuel industrial growth. Rice exports were taxed directly and exporters were further penalised indirectly by over-valuation of the baht. From the mid-1980s, agriculture began to transform. Labour left agriculture, attracted by jobs in manufacturing, urban services and the rural non-farm economy. At the same time, the land frontier was closing and it became harder to add new land.
Agricultural Policies for Poverty Reduction by OECD Publishing