The Role of Agriculture in The Development of Least-Developed Countries and Their Integration Into The World Economy

THE ROLE OF AGRICULTURE IN THE
DEVELOPMENT OF LEAST-DEVELOPED
COUNTRIES AND THEIR INTEGRATION
INTO THE WORLD ECONOMY
Commodities and Trade Division

Food and Agriculture Organization of the United Nations
Rome, 2002
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iii
Contents
PREFACE v
THE ROLE OF AGRICULTURE IN THE DEVELOPMENT

OF LEAST-DEVELOPED COUNTRIES AND THEIR
INTEGRATION INTO THE WORLD ECONOMY 1
EXECUTIVE SUMMARY 3
INTRODUCTION 7
I. THE PRESENT SITUATION OF AGRICULTURE 10
II. EXTERNAL ECONOMIC ENVIRONMENT:
OPPORTUNITIES AND CHALLENGES 43
III. POLICIES TO FULLY EXPLOIT AND DEVELOP
THE AGRICULTURAL POTENTIAL 57
STATISTICAL ANNEX 73
ANNEX I. FAO TECHNICAL ASSISTANCE TO

AGRICULTURE IN THE LEAST-DEVELOPED
COUNTRIES 97
INTRODUCTION 99
I. THE FAO FIELD PROGRAMME IN LDCs 100
II. SPECIAL DIMENSIONS 103
III. SOURCES OF FUNDING 106
IV. OUTLOOK 107
APPENDIX: FAO Field projects in operation in LDCs in 2000 109
ANNEX II. FAO COMPENDIUM OF KEY STATISTICAL

INDICATORS FOR LEAST-
DEVELOPED COUNTRIES 125
iv
v
PREFACE
This volume contains contributions originally prepared by FAO for the

Third United Nations Conference on the Least-developed Countries
(LDCs) held in Brussels from 14 to 20 May 2001. The material included
here, which was presented to the thematic session on “Enhancing
Productive Capacities – the Agricultural Sector and Food Security” of the
Conference, consists of an analysis of the role of agriculture in the
development of least-developed countries and their integration into the
world economy, a summary of FAO field programmes in LDCs and a
compendium of agricultural statistical indicators relevant to the LDCs.
These papers, which have been revised and edited, are being published in
this form in order to facilitate a wider distribution.
THE ROLE OF AGRICULTURE IN THE
DEVELOPMENT OF LEAST-DEVELOPED
COUNTRIES AND THEIR INTEGRATION
INTO THE WORLD ECONOMY
THE ROLE OF AGRICULTURE IN THE DEVELOPMENT OF LDCS 3
THE ROLE OF AGRICULTURE IN THE DEVELOPMENT

OF LEAST-DEVELOPED COUNTRIES AND THEIR
INTEGRATION INTO THE WORLD ECONOMY
EXECUTIVE SUMMARY
This paper examines the role of the agricultural sector in poverty

alleviation and in the sustainable economic growth and development of
the least-developed countries (LDCs). It sets out to provide up-to-date
information and to generate debate that will help forge stronger consensus
on actions needed for agriculture to be accorded its rightful place in the
LDCs.
Agriculture is the mainstay of the LDC economies, underpinning

their food security, export earnings and rural development. Yet, their
agricultural production for the domestic and export markets has lagged
behind, with growth in per caput output declining in the 1990s. Slow
production growth and sharp annual fluctuations in output have continued
to be chronic problems for the LDCs, constituting the main causes of their
persistent poverty and rising food insecurity. The proportion of
undernourished in the total LDC population increased from 38 percent to
40 percent between 1969-71 and 1996-98, while the absolute number rose
from 116 million to 235 million. As regards trade, the LDCs have
continued to be marginalized in world agricultural markets, accounting for
only 5 percent of global agricultural exports in the early 1970s and barely
1 percent in the late 1990s.
The poor performance of agriculture in the LDCs is related to the

many internal and external difficulties that these countries face as they
seek to develop this sector and achieve their objectives of improving food
security and increasing export earnings. Their internal difficulties include
low productivity, rigid production and trade structures, a limited skills
base, short life expectancy and low educational qualifications, poor
infrastructure, and inadequate institutional and policy frameworks.
4 THE ROLE OF AGRICULTURE IN THE DEVELOPMENT OF LDCS
At the same time, with the growing integration of markets from

globalization and trade liberalization, their economies have to operate in
an increasingly competitive external environment. They continue to
export a narrow range of primary commodities that are highly vulnerable
to instability of demand and deteriorating terms of trade. In addition,
external assistance to agriculture in the LDCs has declined, with average
annual ODA falling 20 percent from 1981-90 to 1991-99. Their inability
to compete not only on world markets but also on their home markets is
reflected in their rising food import bills.
Reversing this decline and integrating the LDCs into the world
economy represent enormous challenges: overcoming marginalization
from global markets; adapting to technological change; and coping with a
new institutional environment. But most of the LDCs have enormous
untapped agricultural potential to meet these challenges, with considerable
scope for more effective use of resources and higher productivity. What is
needed therefore is a renewed focus on agricultural and rural
development. Significant progress in promoting economic growth,
reducing poverty and enhancing food security cannot be achieved in most
of these countries without drawing more fully upon the potential
productive capacity of agriculture and its contribution to overall economic
development. With the support of their development partners, the
governments of the LDCs may need to rethink their agricultural and rural
development strategies if they are to achieve their social and economic
objectives, including that of reducing the number of undernourished by
2015.
The paper highlights elements of a strategy for action by the

LDCs - with the support of the international community - that will help
them exploit their agricultural potential by strengthening their supply
capabilities and competitiveness, and thus take full advantage of the
trading opportunities inherent in the multilateral trading system. Progress
is crucial on three fronts: raising and sustaining productivity and
competitiveness; diversifying production and trade; and improving access
to foreign markets.
Recommendations for key actions to spur agricultural growth in

the next decade are put forward for both LDC governments and their
development partners, drawing upon past experience and success stories,
and taking into account emerging domestic and global challenges. The
critical strategy must be to recapitalize agriculture, investing more heavily
in this sector and in programmes to develop rural economic and social
infrastructure. Public investment needs to be directed in particular towards
promoting agricultural research and extension, improving access to
financial services, providing investment incentives, and increasing access
of the poor to support services and productive resources.
The paper proposes the following priority measures:
1. The LDC governments must commit themselves to a coherent and

comprehensive vision of agricultural and rural development. They need to
design, implement and constantly review a series of priority and carefully-
timed measures necessary to boost investment in agriculture:
− Maintaining sound and stable macroeconomic and trade policies
that encourage investment in agriculture;
− Strengthening human capital in rural areas through health and
education services and access to productive resources;
− Establishing a strong institutional environment that improves
access to markets, ensures dissemination of information, sets
standards and provides an adequate legal and regulatory
framework;
− Enabling research and extension services to develop productive
and robust technologies under farm conditions;
− Upgrading the marketing, transport and communication
infrastructure to support farmers’ access to seasonal and longer-
term capital and inputs, and providing them with strong price
incentives;
− Safeguarding natural resource and environment capacity.
2. Such action on the part of the LDC governments can be rendered

more effective if their development partners take steps to:
− Increase ODA and other forms of assistance to help the LDCs

meet public investment needs in agriculture. Current initiatives to
provide financial assistance to LDCs through targeted debt relief
and other means could be partly channelled towards supporting
efforts to develop the sustainable agricultural potential of LDCs,
in particular by strengthening research and development and the
extension services, by ensuring the availability of essential inputs
and structured commodity finance, and by providing marketing
assistance;
− Support LDC efforts to facilitate the transfer of technology and
the flow of foreign direct investment that will improve
agricultural productivity and competitiveness;
− Facilitate market access of LDC’s agricultural commodities in
developed and developing countries, notably by improving terms
of trade, adapting multilateral trade rules to the institutional,
human capital and infrastructural context of the LDCs, and
assisting in developing product quality and pre- and post-
production standards.
INTRODUCTION
Role of agriculture in the economy
The agricultural sector is at the heart of the economies of the

least-developed countries (LDCs). It accounts for a large share of gross
domestic product (GDP) (ranging from 30 to 60 percent in about two
thirds of them), employs a large proportion of the labour force (from 40
percent to as much as 90 percent in most cases), represents a major source
of foreign exchange (from 25 percent to as much as 95 percent in three
quarters of the countries), supplies the bulk of basic food and provides
subsistence and other income to more than half of the LDCs' population.
The strong forward and backward linkages within the rural sector and
with other sectors of the economy provide added stimulus for growth and
income generation.
Thus, significant progress in promoting economic growth,

reducing poverty and enhancing food security cannot be achieved in most
of these countries without developing more fully the potential human and
productive capacity of the agricultural sector and enhancing its
contribution to overall economic and social development. A strong and
vibrant food and agricultural system thus forms a primary pillar in the
strategy of overall economic growth and development. Agriculture in
LDCs cannot continue to be treated as a residual sector for policy
attention and investments.
The challenges of globalization and trade liberalization
Although globalization offers opportunities for growth and

development in all parts of the world, the hopes and promises attached to
rapid liberalization of trade and finance have not so far been fulfilled in
many developing countries, and particularly so in LDCs. In fact, the latter
are increasingly becoming marginalized, especially in agriculture. The
combined share of their agricultural exports declined from about 5 percent
of world agricultural exports in the early 1970s to just around 1 percent in

1996-98.
LDCs face many difficulties, both internal and external, in their

efforts to develop their agriculture and to achieve their objectives of
improving food security and increasing export earnings. Internal
difficulties include low productivity, inflexible production and trade
structures, low skill capacity, low life expectancy and educational
attainments, poor infrastructure, and deficient institutional and policy
frameworks. At the same time, with the growing integration of markets
due to globalization and liberalization, their economies face a more
fiercely competitive external trading environment. They continue to
export a limited range of primary commodities that are highly vulnerable
to instability in demand and a decline in terms of trade. In addition, their
external debt remains large. Their inability to compete on world markets,
as well as in their home markets, is also reflected in their rising food
import bills.
Effective ways need to be found to support LDCs with a view to

improving their economic and social conditions, achieving structural
transformation, diversification and international competitiveness,
overcoming their supply-side constraints and, ultimately, accelerating
sustainable growth.
Scope of the paper
This paper focuses on the role that the agricultural sector can play
in accelerating the economic growth and development of the LDCs and
their integration into global trade. The objective is to identify elements of
a strategy for action by LDCs - with the support of the international
community - to exploit their agricultural potential by strengthening their
competitiveness and supply capabilities so as to take full advantage of
trading opportunities under the multilateral trading system. To that end, an
assessment is made of the main constraints facing their agricultural
development, including those associated with globalization and the
international trading regime for agriculture. Policy lessons of relevance to
LDCs are drawn, based on the experience over the past three decades or
so and focusing on success stories in agricultural development and the
enhancement of competitiveness. In this connection, the paper assesses
the implications of trade liberalization and puts forward some policy
guidelines for integrating LDCs’ agriculture into the global economy in a
manner that would help these countries to maximize the benefits accruing
to them in terms of growth and development. Accordingly, it addresses
the following specific questions:
− What are the factors that have facilitated or constrained
agricultural development in LDCs, in terms of their resource base
(both natural and human resources), domestic policy, human
development and institutions and external economic
environment?
− What challenges lie ahead in the new era of globalization and
trade liberalization?
− What can be learned from past agricultural development
experiences?
− What should be done to improve the competitiveness of
agriculture in LDCs and alleviate their supply-side constraints?
− What should be the role of the Government in LDCs and of their
development partners and other stakeholders?
I. THE PRESENT SITUATION OF AGRICULTURE
Despite its importance to the economy, agriculture in LDCs has

remained largely underdeveloped in production both for the domestic
market and for export. Although there was a modest growth of output
during 1995-98, it barely exceeded population growth, and for the 1990s
as a whole in per caput terms it actually declined. In addition, slow food
production growth and sharp annual fluctuations in output remain major
and chronic problems for the LDCs, constituting the major causes of their
rising poverty and food insecurity. Between 1969-71 and 1996-98, the
proportion of undernourished in total population in LDCs increased from
38 percent to 40 per cent, while the absolute number of undernourished
increased from 116 million to 235 million. For the rest of the developing
countries, by contrast, the proportion of undernourished in total
population in 1996-98 was18 percent. In addition, indicators of poverty
show that the proportion of people living below the poverty line (defined
as $1 per day) has risen in many LDCs.1 What follows is a brief analysis
of the major internal factors underlying the present agricultural situation
in LDCs. Areas are highlighted where improvements in policies,
institutions and investment could accelerate agricultural growth to levels
that would help to reduce rural poverty and enhance food security.
Supply issues
Trends in production
Over the past decade, agricultural production, including food
production, has not kept pace with population growth in LDCs as a whole.
Although agricultural output in 1990-99 rose at an annual average rate of
1
For example, recent World Bank figures for sub-Saharan Africa (SSA), which contains
the majority of LDCs (34), show that the proportion of poor people increased from 38.5
percent in the late 1980s to 39.1 percent in the mid-1990s. (World Bank, Entering the 21st
Century: World Development Report 1999/2000 (New York: Oxford University Press for
the World Bank, 2000), p. 25).
2.5 percent, exceeding the rate of 1.6 percent in the previous decade, in
per caput terms there was virtually no increase in output, or even a slight
decline. The situation was the same for per caput staple food production
(Table 1).
1. However, these aggregate figures conceal a wide diversity
of performance among countries. While more than 25 countries
experienced negative per caput growth rates during 1990-99, 5
had positive growth as high as 2-5 percent. In only about 15 LDCs
was per caput agricultural production in 1990-99 higher than in
1980-90. Elsewhere, mainly in sub-Saharan Africa (SSA), there
was a decline.
2. Many LDCs changed from being net food exporters
during the 1960s to net food importers during the 1980s and
1990s.Current projections are for their dependence on imports to
increase at least up to 2015.2
3. Although there have been sharp annual fluctuations over
the past 30 years, the value of production of nearly all agricultural
commodities rose during 1990-97, the only exceptions being
cassava, cocoa and sisal (Annex Table 1).
2
See FAO (2000), Agriculture: Towards 2015/30, Technical Interim Report.
Table 1. Agricultural and food production in the 1980s and 1990s in

LDCs and other developing countries (annual average
percentage increase)
Agricultural production
Total Per capita
1980-90 1990-99 1980-90 1990-99
LDCs 1.6 2.5 -0.8 -0.1
All developing countries 3.6 3.7 1.5 2.0
Food production
Total Per capita
1980-90 1990-99 1980-90 1990-99
LDCs 1.7 2.5 -0.8 -0.1
All developing countries 3.7 3.9 1.5 2.2
Source: Computations based on volume indices (FAOSTAT 2000).
Determining factors and constraints
Physical aspects
Most LDCs have considerable unexploited potential in

agriculture, thanks to their factor endowment in land, water, climate, the
scope for utilizing their human resources and improving on their so far
limited use of modern farming methods. There is thus great scope for
more effective use of their agricultural resources and for increasing their
agricultural productivity.
Land and water resource potential and constraints
The most fundamental factor influencing the agricultural

production potential of a country is the availability of arable land. Land is
the essential prior resource needed for crop, animal and forestry
production. Thus, the existence of a potential for expanding the cultivated
area is basic to national agricultural planning. Comparing the potentially

cultivable area with current use of land and forecasts of future population
growth will indicate whether countries have the physical capacity for
expanding agricultural production, whether for domestic use or for export.
Least-developed countries have widely diverse agro-ecological
situations, with varying availability and quality of arable land and varying
climatic conditions. Some countries have large areas of arable land and
considerable water resources while others have more limited availabilities
or are almost devoid of these resources. Prospects for agricultural
development necessarily hinge on these considerations.
With the objective of classifying countries in terms of potential
for agricultural production, a ranking on the basis of the land resource
availability and constraints was undertaken, taking into account not only
land and water constraints but also climatic constraints and population
growth.3 Annex Table 2 ranks 35 of the LDCs for which comprehensive
data were available in terms of per caput potential arable land as well as
per caput cultivable land in actual use. Potential arable land refers to areas
that could be brought under cultivation because of soil suitability and
availability of water (rainfall or irrigation).4 It is important to note that in
most cases potential arable land is rainfed and suffers from constraints
such as ecological fragility, low fertility, toxicity, and high incidence of
disease. These reduce its productivity and require heavy inputs and
management skills to permit its sustainable use. Furthermore, especially
considering the lack of financial resources in many LDCs, prohibitively
high investments may be required before the land is rendered accessible or
disease-free. FAO projections to 2015 indicate that the expansion of
3
One of the clearest consequences of population increase will be to exert pressure for
more land to be brought under cultivation. At the same time, existing agricultural land will
be used more intensively.
4
Potential arable land as referred to here is a rough indicator: it includes lands which are
currently under forest and wetlands which are protected and not available for agriculture
and makes no allowance for land for human settlement. Thus, land potential as shown in
Annex Table 2 is likely to be overestimated, but it should nevertheless be a good indicator
of the relative potential of different countries.
arable land as well as harvested land is expected to be below the past rate
of increase.
The overall rankings indicate countries with the most favourable
conditions (low rank numbers) or the most severe problems (high rank
numbers) with respect to physical resource potential and constraints, now
and in the future. This ranking is broadly indicative of a country's relative
land resource potential. Three types of countries can be distinguished: i)
those with a relatively large land balance, where extensive agricultural
expansion may still be possible (e.g. Democratic Republic of the Congo
and Mozambique); ii) those which are close to the limit of exploiting
actual arable land (e.g. Bangladesh and Somalia); and iii) those which
have exploited almost all their arable land and can probably not expand
much more (e.g. Afghanistan and Yemen). Thus grouped, the countries
can respectively be considered as having a high, medium and low
agricultural potential. Out of the 10 highest-ranked countries 8 fall in the
humid zone of central Africa. In this group there would appear to be a
productive potential that is not yet exploited.
Among the lowest-ranked countries, there are two highly
contrasted groups: i) two countries that have over 90 percent of their land
as deserts and drylands; and ii) four relatively humid countries with
problems of steplands and land degradation.
Another feature of the lower-ranking countries that may be noted
is that at least five of them have, in recent years, experienced major civil
conflicts, political instability, or war. The high rate of population growth
in these countries is likely to increase pressure on land resources, which
can lead to the breakdown of traditional property rights to land, and
ultimately of law and order. Among the many consequences of such
changes is further degradation of land.
Potential for growth in agricultural productivity and its importance

In LDCs, the contribution of increases in productivity to
agricultural growth has been limited or zero. Horizontal expansion, i.e.
bringing more land under cultivation, remains the dominant source of
growth. Given the increasing pressure on agricultural resources, however,

faster agricultural growth, particularly in countries with limited scope for
land expansion, will require continuing increases in agricultural
productivity from its present relatively low level. Such increases are
attainable if major constraints on enhancing productivity, such as lack of
favourable incentives, limited rural public investment and poor
institutional support, are effectively tackled.
Available evidence shows that the potential productivity gains are
considerable. In terms of agricultural value added per worker, productivity
increased, though only slightly, in 21 out of the 31 LDCs for which data
are available between 1979-81 and 1995-97 (Annex Table 3). However, in
comparison to other developing countries the agricultural value added per
worker in LDCs appears to be relatively low, suggesting that there is
much room for improvement.
The following is a broad assessment of productivity in each of the
major agricultural sub-sectors.
(i) Crops
The most widely used indicator of crop productivity is production
per unit of land (also referred to as crop yield). In general, crop yields in
LDCs are low relative to those in other developing countries (Annex
Table 4). Yields of the basic food commodities (cereals, roots and tubers
and oil crops) are less than half the average for developing countries,
although there is much variation among countries. There thus appears to
be potential for substantial gains in productivity.5
Unlike most other developing countries, growth in agriculture in
LDCs owes a great deal to area expansion rather than to advances in
yields. For example, area expansion accounted for 77 percent of the
growth in cereal production in LDCs during 1981-89 and for 72 percent in
1990-99, and higher yields for only 23 percent and 27 percent,
5
Although yield comparisons should be in a homogenous agroecological context, such
comparisons of averages provide a good idea of the range of possibilities.
respectively (Annex Table 5). For rice, maize and fibre crops, however, a
relatively high and increasing contribution was made by productivity
improvements (yields).
(ii) Livestock
Livestock is an important and growing sub-sector, providing a
substantial source of income and nutrition for the rural poor in most
LDCs. It remains the principal form of non-human power available to
rural farmers, and is used by both men and women for various purposes,
including accumulation.
LDCs have substantial hidden growth reserves in the livestock
sector. A comparison of LDCs’ share in world livestock numbers with
their share in world output therefrom (Annex Table 6) provides an
indication of the relative productivity levels of LDCs. Although 14
percent of the world’s cattle and 18 percent of the world’s sheep and goats
were in LDCs in 1997-99, those countries produced only about 4 percent
of the world’s beef and 11 percent of the world’s sheep and goat meat.
Livestock production in LDCs relies much more on traditional
operations. It relies largely on growth in the number of animals for
increased production. There was virtually no significant improvement in
productivity per animal in most LDCs, where their average productivity
levels remain much below those of developing countries as a whole
(Annex Table 6). The extreme scarcity of capital, shortage of quality feed
and widespread prevalence of disease have constrained their livestock
sector. To achieve greater improvements in productivity there is a need
for: i) continued investment in both research and the development of
animal and feed grain production and processing and ii) assistance to
small, poor livestock producers, so that they can become better integrated
with commercial livestock marketing and processing.
(iii) Fisheries
Many LDCs have great potential in fisheries. Although this
potential has not yet been fully exploited, fisheries products are
increasingly contributing to food consumption of the population and to

foreign exchange earnings. Catch potentials vary widely among countries.
Those in north-west Africa, south-west Africa, the south-west Indian
Ocean (for tuna) and the Rift Valley lakes, for example, have the greatest
potential for production and exports. The countries bordering the Atlantic
Ocean benefit from particular oceanic conditions (i.e. upwelling systems)
that greatly contribute to the increase of marine water productivity,
although these systems are subject to marked fluctuations due to weather.
High-price demersal species are considered to have approached the limits
of possible exploitation, but low-price pelagics are thought to be largely
under-exploited. Countries still depend largely on foreign investment or
international fishing agreements for the exploitation of their offshore
resources.
(iv) Forestry and agroforestry

Forests and trees indirectly contribute to economic development
and food security and sustainable livelihoods in numerous ways, through
support to agricultural systems, their role in rural development and in
maintaining environmental integrity and the provision of opportunities for
income generation and employment.
Rural communities, particularly in LDCs, are highly dependent on
forest goods. Wood fuel is the main source of energy in most LDCs,
representing up to 90-95 percent of domestic energy consumption. Non-
wood forest products (NWFPs) are of major significance primarily in
households and local economies. An estimated 80 percent of the
population in the developing world use NWFPs to meet some of their
health and nutritional needs. Millions of households depend heavily on
these products for subsistence consumption and/or income. Timber and
the timber industry are an important source of income and a significant
component of the national economy in LDCs with high forest cover,
representing in one case 15 percent of GDP and 35 percent of total export
revenue.
In LDCs, forest goods and environmental services are provided
almost exclusively by natural ecosystems, which are threatened by
unsustainable exploitation practices and other factors, including

inappropriate horizontal expansion of crop production. The challenge will
be to define and develop integrated systems that ensure sustainable
provision by forests and trees of goods and services which are vital to the
livelihoods of the population in LDCs.
The foregoing analysis shows that the gap between actual
productivity levels (in terms of land, labour or animal head) in LDCs and
what is potentially achievable is huge. This gap can be defined at three
levels:
− Average productivity is far below what could be achieved by
using the best practices and technology suitable for the specific
location. There is scope for closing this gap through extension
programmes and infrastructure investments;
− Yet further improvements in productivity could be obtained
through more applied research programmes. However, this
involves a long time span and requires continuity of support. The
experience of maize in SSA shows that African countries are
slow in acquiring the capacity for developing reliable and cost-
effective systems for the delivery of crops from the laboratory to
the field;6
− The difference between productivity derived from scientific
innovation and from research is also high. To close this gap
applied adaptive research programmes must be supported by
international and national pre-invention science programmes.
Improving agricultural productivity is associated with the
progressive reduction of each of these gaps − starting with the extension
gap, moving on to the research gap and then to the science gap − as the
country’s capacity expands for adopting and developing improved
technologies. At this stage of development in the LDCs reducing the
extension and research gaps would be the immediate priorities.
6
IFPRI, “Is there hope for food plenty in Africa?”, News & Views: A 2020 Vision for
Food and the Environment, October 1996.
In many developing countries (including LDCs), governments

have often intervened in markets in inappropriate ways and have invested
in state-owned production enterprises that have often been inefficient.
Reforms have been undertaken to privatize inefficient state-owned
enterprises and to eliminate marketing boards and other inefficient
regulatory agencies in many countries in recent decades. However, the
historical role of such institutions and the associated provision of these
public goods in agriculture has not always been fully appreciated. Public
sector investment in rural schools, in the development of input and output
markets, in agricultural extension and in applied agricultural research have
been vital to agricultural development in every economy in the world.
Institutional reform without investment in these public goods does not
produce economic growth in the agricultural sector. Growth is not
produced by passive “let the markets work” policies that do not include
critical public investment programmes.
Evidence shows that public spending on agricultural extension
and research has a potentially high payoff in LDCs. A recent overview of
studies on returns to investments in research and extension confirmed that
the internal rate of return in Africa (which contains the largest number of
LDCs) is rewarding: the median return was 27 percent for extension and
37 percent for research (Annex Table 7). Therefore, building extension
and research capacity is necessary to enable LDCs to achieve high
productivity growth, in line with the experience of many developing
countries. As the programmes are complemented by institutional
investments in markets and infrastructure, their effectiveness increases.
Despite their high potential payoff, agricultural research and
extension expenditures in almost all LDCs are very low in per caput terms
compared with those in other developing countries or the developed
countries. A recent study by FAO has shown that, in 1989-90, total
expenditures on agricultural research in SSA countries were less than 0.6
percent of agricultural GDP.7
7
FAO, Rome (1995), The National Agricultural Research Systems of West and Central
Africa.
Environmental and natural resource sustainability

There is a growing concern that the expansion and intensification
of agriculture may lead to degradation of the natural resource base (soil,
water, vegetation and biodiversity) and consequently to a decrease in
agricultural production. However, agricultural intensification per se – i.e.
increasing the productivity of land already under cultivation - should not
be a threat. In fact, properly managed intensification is needed to meet
agricultural production needs and reduce the pressure of agricultural
expansion in fragile and marginal areas. The lack of sound management
practices and of access to appropriate technology and inputs for
agriculture, rather than intensification, is the most serious cause of
environmental degradation.
Sustainability of environmental and natural resources in LDCs is
related to a number of factors, such as globalization, inequalities in the
development process, lack of access to science and technology, limited
financial means of production and disrupted traditional institutions and
production systems. Moreover, agriculture still functions as an isolated
sector in many LDCs. Increased stress on natural resources,
encroachment on marginal lands, migration towards cities or more
developed countries, urban slums, social disintegration and poverty often
result from a lack of services and employment opportunities in rural areas
in the LDCs.
Population growth and unsustainable management practices create
pressures on the eco-system and jeopardize the ecological balance. The
last five decades of resource over-exploitation in many LDCs have
drained reserves of natural capital in many regions and limited agricultural
and livelihood opportunities for future growth. Revitalization of
indigenous knowledge and more research are needed on production
methods that preserve natural resources and the environment. Most
importantly, more attention should be given to local participation in
decision-making processes for better interactions of individuals and social
groups with the natural ecosystem. There should be financial and other
assistance to help LDCs adapt and acquire appropriate technology.
Programmes, including a diagnosis, at national, sub-national and local
level, of areas and populations most exposed to the degradation of land

resources, and with consequences for their livelihood, need to be initiated
and implemented jointly by various stakeholders. Unfortunately, these
areas are often left aside by development programmes, as their
rehabilitation is complex and not easy to justify on purely economic
grounds. The selection of appropriate inputs should also be based on
solutions that combine traditional knowledge and modern techniques and
assist the farmers in investing in the maintenance of land assets.
The integration of environmental considerations into development
planning should be seen as an indispensable element of development
strategy in LDCs. It is not only a means of protecting fragile lands for
future agricultural production, but also a mechanism for LDCs, in
particular those in dryland zones, to sustain an important capital of
biological diversity and contribute to solutions to some of the global
change issues. Thus, a site-by-site analysis is likely to be required, given
that the interaction between policies that promote a supply response and
the manner in which that response will be achieved (and hence the
environmental impact) is likely to be ambiguous.
In sum, it appears that many of the LDCs have relatively abundant
agricultural and natural resources that could provide them with a
comparative advantage in a range of agricultural products. These could be
developed to exploit international market opportunities and therefore
generate broad-based growth throughout the economy. There are great
opportunities for intensification and productivity enhancement in
agriculture. The next three sub-sections examine domestic and external
challenges and constraints that have impeded the full exploitation of this
potential and highlight policy measures for its realization in an effective
and sustainable manner.
Human development aspects

Developing the human resource potential involves examining the
roles and needs of farmers (both men and women) and other members of
the household who may perform diverse duties and have differing
requirements with regard to education, health and nutrition, and technical
knowledge. A low level of human development (as measured by a

combination of life expectancy rates, education attainment rates and
standards of living)8 is characteristic of LDCs.
Education, training and extension

Education is the main pillar of human development and a major
factor in agricultural development. Research shows that primary education
attainments and literacy, training in basic skills and extension services
have an immediate and positive impact on farmers’ productivity. A farmer
with four years of elementary education is, on average, 8.7 percent more
productive than one with no education. Moreover, the better he is
educated, the more he stands to gain in income from the use of new
technologies and the more rapidly he adjusts to technological changes.
The effects are beneficial to the whole population; more specifically, they
enhance the capacity of the rural population.
The quality of education and training in LDCs is low, and the
institutional capacity to carry out reforms and improvements in education
and training for agriculture and rural development is weak. As a result,
LDCs have high rates of illiteracy and of children out of school, affecting
most acutely the rural population.
Population and health

Demographically speaking, the LDCs suffer from a dangerous
combination of population, health and development problems that adds up
to a daunting challenge for their people, their governments and the
international community.
Current projections indicate that they will continue to experience
a high national rate of population growth, although it could be set back by
the AIDS epidemic, if unchecked. Obviously, the projected increases in
8
See UNDP, Human Development Report 2000 (New York : Oxford University Press for
UNDP), 2000.
overall population numbers will have major implications for food

requirements. For instance, a recent FAO study 9 indicated that in order to
maintain, or slightly improve, present per capita food availability by 2050,
food supply would need to be nearly quadrupled in some LDCs.
There are other demographic factors that are likely to be of direct
relevance to agriculture and food security in LDCs. In particular, the
increasingly rapid spread of HIV/AIDS in rural areas poses a very serious
problem. The pandemic is unique in comparison with other diseases in
that it affects the most productive age groups: those between 15 and 50
years. It thus has direct quantitative and qualitative effects on agricultural
labour: it greatly reduces the size of the agricultural workforce and its
productivity; it changes the division of labour; and it results in a loss of
skills that are important for farming, marketing and management of
resources.10
The pandemic also directly affects markets for agricultural
production by altering the size and composition of the population to be
fed, and limiting its effective demand for food. In addition to being a
major health problem, in recent years HIV/AIDS has been considered a
critical socio-economic issue. Its impact is also related to the fact that it
provides an entry point for other diseases, such as tuberculosis and
malaria. Increased levels of morbidity and mortality impoverish affected
households and deplete the rural sector at large. This is likely to lead to
declines in agricultural production and to aggravate food shortages and
long-term nutritional deficiencies.
The role of rural women in agricultural development

Rural women play an important role in producing the world's
staple crops, raising poultry and small animals (sheep, goats, rabbits and
9
Collomb, P. (1999): Une voie étroite pour la sécurité alimentaire d’ici à 2050. FAO,
Rome, and Economica, Paris.
10
D. Topouzis and J. du Guerny, Sustainable agricultural/rural development and vulnera-
bility to the AIDS epidemic, FAO/UNAIDS joint publication, 1999.
guinea pigs), and providing labour for post-harvest activities. Their role is
particularly prominent in LDCs. Wars, increasing rural-to-urban migration
of men in search of paid employment, together with rising mortality
attributed to HIV/AIDS, have led to an increase in the number of female-
headed households in the developing world. This 'feminization of
agriculture' has placed a considerable burden on women's capacity to
produce, provide, and prepare food in the face of already considerable
obstacles.
FAO studies demonstrate that while women in most developing
countries are the mainstay of agricultural sectors, the farm labour force
and food systems (and day-to-day family subsistence), they have been the
last to benefit from - or in some cases have been negatively affected by -
prevailing economic growth and development processes. Gender bias and
blindness persist: farmers are still generally perceived as 'male' by policy-
makers, development planners and providers of agricultural services.
Women consequently find it more difficult than men to gain access to
valuable resources such as land, credit and agricultural inputs, technology,
extension services, training and other services that would enhance their
productive capacity.
Overall, women's contribution to agriculture is poorly understood
and their specific needs ignored in development planning. However,
women's full potential in agriculture must be realized if the goal of
promoting agricultural and rural development is to be achieved.
Information and communications

Information and communications are also essential for sustainable
agricultural and rural development. Investments in rural information
systems can improve farmers' knowledge levels and management skills.
Raising the level of awareness, acquiring information, sharing
experiences, changing attitudes and developing skills call for processes of
communication and learning. While Internet-based technologies are
spreading rapidly in many developing countries, there is still a serious
lack of basic telecommunications infrastructure. The information gap

between the rich and the poor is indeed very wide.
Policies and institutions

This sub-section identifies the major policy and institutional
measures that have facilitated or constrained agricultural development in
LDCs, with emphasis on those that prevented farmers from increasing
their productivity or output.
Macroeconomic policy framework

In the past, governments in LDCs used to carry out many of the
functions associated with agriculture: funding, a variety of production,
marketing and distribution services, regulation and in some cases direct
involvement in production. More importantly, the overall effect of
government policies was not favourable to the agricultural sector. The
prevailing development paradigm emphasized the importance of
extraction of agricultural surplus in favour of other sectors.
Macroeconomic policies, especially exchange rate policies, discriminated
against tradables, while trade policies, by favouring non-agricultural
tradables, “tilted” the terms of trade within the tradable sector against
agriculture. More importantly, though, the price-based bias against the
agricultural sector was not compensated by other forms of transfers in
favour of rural areas.
Since the early 1980s, most LDCs, like many other developing
countries, have been implementing a series reforms both to address
macroeconomic disequilibria and to rectify the distorted inter and intra-
sectoral price incentives. At the macroeconomic level and in the context
of stabilization programmes, a major change has been a move towards an
exchange rate system better reflecting the scarcity of foreign exchange
and a monetary and fiscal policy conducive to macroeconomic stability.
Thus, a major source of anti-agricultural bias has been addressed but not
necessarily entirely removed. And steps towards macroeconomic reform
have not been uniform in all countries. At the sectoral level, steps have
been taken to remove distortionary barriers to the functioning of markets,

and towards privatization of processing, marketing and distribution
activities.
The diversity in the contents and in the implementation of reform
“packages” makes it impossible to undertake an overall evaluation of their
impacts on agriculture (by e.g. comparing pre-and post-adjustment growth
in agriculture or countries which adjusted and those that did not). With
respect to macroeconomic policies, it is nevertheless relevant to note that
in a number of LDCs which experienced buoyant agricultural growth,
macroeconomic policies brought about an increasingly competitive
exchange rate and more realistic interest rates.11 A stable macro-economy,
by promoting investor confidence, constitutes an essential characteristic of
an overall growth environment, which in turn induces an expansion of the
internal market for agricultural commodities. A competitive exchange rate
promotes agricultural exports.
As for sectoral policies, the limited cross-country evidence on the
impact of sectoral policy reform on agriculture has shown that, while
improving the structure of price incentives facing agricultural producers is
important, it does not address all the constraints which prevent agriculture
from realizing its productive potential. In fact, examination of a number of
successful and sustained agricultural growth experiences shows that, in
certain periods, output growth has taken place even though the structure of
price incentives was not favourable to agriculture.12 The principal
difference between these success stories and others, where price
discrimination against agriculture resulted in the stagnation of the sector,
is that, despite price distortions, there was nevertheless a government (and
donor) commitment to building rural infrastructure and promoting
agricultural research and other public services, which more than
compensated for the loss caused by distorted price incentives.
11
Dorward A. and Morrison J. (2000), “The Agricultural Development Experience of the Past
30 Years: Lessons for LDCs”, background paper prepared for FAO.
12
Mellor J. (2000), “Agricultural Development: So many Successes, Such Excellent
Results”, background paper prepared for FAO.
Thus, the major lesson that emerges from country experiences is

that for agricultural growth to occur, a number of factors need to be in
place which address the “handicap” of the rural sector in terms of
infrastructure, social services, technology, marketing infrastructure, and
seasonal credit availability, along with the building of an appropriate
institutional environment. There is no unique policy prescription that fits
the diversity of the agricultural sector in the LDCs. While enhancing
productivity is a common essential requirement, the nature of the increase
in productivity envisaged will determine the appropriate policy mix. For
example, in countries seeking increased productivity through shifts to
commodities with a higher income elasticity of demand (such as fruits and
vegetables) and through improved access to dynamic markets (both
domestic and external), an appropriate institutional environment, market
information and assistance in meeting health and sanitation standards are
some of the possible elements of policy.
In addition, the multiplicity of linkages of agriculture to the
broader rural sector and rural non-farm activities suggests that agricultural
policy should not be confined to the narrow limits of the agricultural
sector strictly defined, but should consider also the impact of policy on the
rural space for which agriculture (especially in LDCs) is the central
activity (see the section on interlinkages below).
In several countries reforms have not been properly sequenced so
as to ensure their efficiency. In designing policies and programmes
governments have often concentrated on exchange rates, domestic price
liberalization and privatization of public enterprises, while downplaying
other policies and factors affecting agriculture, such as an accompanying
adequate improvement in infrastructure, technology and marketing facilities.
Inadequate design and sequencing of reforms, and an unstable policy
environment, have thus been major sources of the difficulties faced by the
reform programmes in many LDCs.
Agricultural and rural development institutions, infrastructure and

support services
(i) Markets
Rural infrastructure in most LDCs is rudimentary, with semi-
subsistence farming often dominating agricultural activities. Lack of or
difficult access to markets is common to most LDCs. Even where rural
markets exist they are notoriously imperfect, and when they are totally
absent it is difficult for farmers to sell their produce and thus ensure food
security for their families. An initial requirement is frequently thus the
development of these rural markets. Difficulties that have been cited in the
operation of commodity markets include remoteness of producers from
markets, poor quality of the produce, high transport costs (because of high
energy prices and weak infrastructure), lack of competition among traders
and poor organization of producers, lack of information on market
conditions, lack of clear market rules and their poor enforcement, as well
as sharp price fluctuations during the year.
(ii) Rural financial services

Financial services in rural areas are often poorly developed. The
channelling of cheap credit through state agricultural development banks
was characterized by low repayment rates, poor targeting and low
operational and managerial efficiency and thus was limited in terms of
outreach and sustainability. Often subsidized credit has been misused and
channelled towards the introduction of technological packages that were
not adapted to local farming systems and for which no effective demand
existed. Poor assessment of marketing possibilities and profitability and
the limited loan repayment capacities of the borrowers often explain the
high rate of loan defaults, reinforced by periodic debt waivers advocated
through political pressure.
In contrast, private commercial banks charge high interest rates,
especially to small farmers in regions with low population densities. The
consequently high costs of borrowing are further increased by an unstable
macroeconomic environment involving, inter alia, high annual inflation
rates. In addition, poor rural infrastructure and communication systems,

ineffective extension services, and inappropriate macroeconomic and
sectoral policies raise the costs of inputs and marketing, further reducing
the profitability of farming. Linkages between farmer and trader and other
arrangements with enterprises in the agribusiness chain, such as contract
farming, can overcome many of these constraints.
Experiences with microfinance institutions highlight the crucial
importance of client orientation in the provision of financial services and
the use of market- based interest rates that cover the full costs of lending.
Poor people seem to prefer a reliable and timely availability of loan
finance, even at higher costs, to an untimely and bureaucratic supply of
subsidized credit that is tied to specific uses.
However, the specific nature of agriculture, such as seasonal
credit demand for annual crops and high risks, reduces the role of current
microfinance institutions and their lending methods in financing the
seasonal and on-farm investment needs of small farmers.
(iii) Availability of farm inputs

Information gathered through FAO’s Special Programme for Food
Security (SPFS) projects in 22 of the low-income food-deficit countries
(LIFDCs) shows that a major problem facing farmers is the unavailability
of fertilisers and agro-chemicals, and often of animal feed, on time or in
the quantity required. This constraint is largely linked to the lack of credit,
difficulties in obtaining foreign exchange, the seasonality of agricultural
input requirements, spatial dispersion of farmers, poor transport
infrastructure and, sometimes, to the marketing and management
inefficiencies of the state-owned companies responsible for single-channel
input supply and marketing.
Quality seeds are also said to be available in insufficient
quantities, particularly in Africa and Asia. The informal seed supply
system is the dominant source of seed/planting materials for resource-poor
farmers in marginal areas and has proven to cope better with a disaster
situation compared to the formal seed sector. Nevertheless, the informal
seed supply sector has unfortunately received very little attention and
financial support from policy makers, to the detriment of the productivity
of small-scale farmers. Therefore, without strengthening seed supply
systems in developing countries there will be little or no technology
transfer to improve crop productivity and hence the livelihoods and well
being of poor and vulnerable households in rural communities. In some
countries, there are worries that the genetic base of certain cereals has
become too narrow, especially as local varieties have been given less
importance or suppressed. Absence of improved animal breeds and
insufficient livestock treatment facilities are also reported in some cases.
Another institutional constraint is inefficient use and distribution
of water, which is usually blamed on poor management of irrigation
schemes and inadequate water distribution arrangements, which result in
an uneven and untimely distribution of water among farmers. In many
LDCs, the management of irrigation schemes and water distribution is
under public control. Farmers’ associations are rarely involved or are too
weak to contribute to both the design of water distribution systems and the
maintenance of the network. The water needs of farmers have to be
examined from both the household and production-for-export aspects,
since the particular use affects the quality of life of both men and women
and their communities.
(iv) Agricultural research and extension

In most LDCs, the institutional capacity for research and
extension is weak. As a result, the technology available is insufficiently
adapted to local conditions and research results do not come up with a
variety of technological solutions adapted to the range of socio-economic
and agro-ecological conditions existing in the country, such as the
differing technical needs of female and male farmers. Lack of
technological alternatives is often mentioned as a constraint to irrigation
development (e.g. different models of irrigation pumps, suited to the
needs of different users). Where techniques and technologies developed
by research are available, their dissemination is faced with a number of
difficulties such as the poor delivery of the extension and training services
that are not necessarily targeted to the appropriate users.
Weak extension and training services and the consequent lack of

technological knowledge of farmers are often considered to be the major
factors behind the insufficient adoption of improved technologies. This
constraint could be overcome by improving farmers’ access to knowledge.
For example, valuable information can be obtained from some of the
extension materials on FAO's Ecoport web pages.
(v) Social and cultural factors

The development and adoption of high-production technology has
also been constrained by a number of social and cultural factors,
including:
− Insecurity of land tenure and fragmentation of land holdings in
some LDCs, particularly in Africa, especially with regard to
women, who may have little or no access to land, depending on
custom or formal laws that regulate the tenure practices;
− The low level of education, which is an obstacle to raising the
technological capacity of farmers from its currently low levels
and to the adoption of new technologies. Education for both boys,
girls and adult women is often lacking. This constraint is
considered to be particularly acute for women. For example, the
lack of farmers' bookkeeping skills makes it more difficult for
them to appreciate the advantages of improved technologies;
− The risk-averse tendencies of farmers, which have been
generally underestimated, particularly when they have not been
involved in the decision-making process on the development and
use of new products. Farmers have sometimes hampered the
adoption of new technologies and management practices,
especially when their traditional livelihoods and associated local
traditions have been threatened. For example, high variability of
yield of certain improved varieties has been a constraint to their
adoption by poor farmers bordering on the subsistence level. It is
essential that both male and female farmers be involved in the
entire process of developing new high-yield varieties and
associated technologies, in order to ensure a greater acceptance
and adoption by those who stand to benefit most;
− Since educational attainment has a direct impact on the

knowledge, skills, attitudes and behaviour of farmers, low
educational attainment in LDCs is reflected in the great difficulty
in changing farmers’ attitude and behaviour to cope with the
new policy reforms. The reforms implemented since the early
1980s have involved drastic changes in the environment in which
producers operate. While they were relatively passive actors
before policy reform, they have now to take initiatives and
organize themselves.
Post-production activities
Lack of good quality roads as well as insufficient storage
facilities have been identified as major constraints in many LDCs,
sometimes resulting in crops remaining unsold. Failure of the transport
infrastructure in some LDCs to move food grains from surplus to deficit
areas during periods of localized drought illustrates the severity of
transport bottlenecks and agricultural market segmentation. Inadequate
communication facilities tend to limit, for many producers, the
possibilities of access to markets and market information, as well as to
make access to inputs more difficult and costly, and lower producers’
returns. The absence of storage facilities amplifies seasonal market
fluctuations and the level of post-harvest losses, which in some cases can
be as high as 30 percent of total production.
Food safety and quality standards

Ensuring the safety and quality of foods in developing countries is
of paramount importance not only from the point of view of public health
but also to improve the competitiveness of their food products in the
international market. Their control systems and institutions suffer from a
number of weaknesses which make them ineffective in ensuring consumer
protection and benefiting from the post-Uruguay Round trading regime.
These weaknesses concern all the basic elements of a national food
control system, i.e. food legislation, food inspection, quality assurance at
the production level and testing capabilities (human and physical) to

control the quality and safety of the food supply.
The following actions are needed to enhance the capacity of
developing countries to meet the requirements set out in the relevant
WTO Agreements, thus ensuring consumer protection and promoting food
trade, internally and externally:
− Capacity building to implement the Agreement on the
Application of Sanitary and Phytosanitary Measures (SPS) and
the Agreement on Technical Barriers to Trade (TBT) and to fulfil
other new international and domestic requirements on standards;
− Developing national capacities for risk assessment; designing
domestic regulations and policies for export, food and
agribusiness development;
− Promoting regional cooperation and enhancing coherence in trade
policies and domestic regulations on standards;
− Development of national food safety regulations and standards
without distorting international trade;
− Enhancing the participation of developing countries in
international standard-setting bodies;
− Collection of relevant information for national capacity building
and policy making;
− Improving the negotiating stance in international trade
negotiations
Investment in agriculture
Least-developed countries face a major domestic resource gap in
generating the investments needed to achieve their developmental
objectives in agriculture, including the target of reducing the number of
under-nourished people by 2015. The concept of investment to augment
the productive capacity of agriculture entails not only physical assets, but
also science and technology dissemination, human capital enhancement
and social capital build-up. Creating a pro-investment climate to raise
productivity levels and achieve the necessary structural changes is a major
policy challenge.
In many LDCs, much public expenditure on agriculture is in the

form of subsidies, leaving little public funding for the creation of new
assets, for maintenance or for other growth-producing expenditure. The
result is that many agricultural support services barely function, rural
roads are impassable for much of the year, farm machinery is mostly
inoperable and irrigation schemes are crippled.
It was seen above that many LDCs have adopted policies to
deregulate agricultural markets, reduce price distortions, and allow a
greater role for private agents in economic activity. Such measures,
although necessary, are not always sufficient for inducing the investment
necessary to permit sustained production increases. Improved investment
incentives also require policies that improve access to markets, ensure
dissemination of information, set standards and provide an adequate legal
and regulatory framework. At a more general level, there is consensus that
political stability and a well-defined and enforced institutional framework
are also needed. Strong complementarity between public and private
investment is also necessary to sustain agricultural growth, with
governments investing in sectors having an important public goods
element such as research, extension and infrastructure and hence covering
in particular roads, education, norms and standards.
FAO projections put the average annual gross investment
requirements until 2010 in SSA for primary agriculture, storage and
processing (excluding the related pre- and post-production infrastructures
and services) at some US$ 11.1 billion, under the “business-as-usual”
scenario13. To reach the World Food Summit target of halving under-
nutrition, however, additional investments of about US$ 3.6 billion would
be required to ensure the necessary increase in domestic food production.
Rural infrastructure (e.g. irrigation and roads) is badly lacking in
LDCs, particularly in SSA. Heavy investments are needed in rural
communication infrastructure, irrigation improvements and
13
FAO Committee on World Food Security, Investment in agriculture for food security:
Situation and resource requirements to reach the World Food Summit Objectives, CFS:
99/Inf.7, June 1999.
modernization, better exploitation of rainfall by simple and improved

water capture and use, land management and improvements, education
extension and research and the provision of health services. Research
results and best practices, as yet untried on a large scale, can be adopted
for high-potential areas in SSA. Research continues to be needed to
develop farming systems for small, resource-poor farmers, who form the
majority in most LDCs. These new farming systems need to be
sustainable at higher population densities and capable of intensifying
production on existing land.
While the need for investment is huge, sequential removal of
constraints is crucial. National experience has shown that when the
increase in production associated with a reform or a change in
circumstances has reached a plateau, a further reform, or series of reforms,
has been required to unleash further potential. Sustained growth has only
been possible when new constraints have been alleviated by further
reforms.
Most of the required investments can be expected to be
forthcoming from the private sector, and therefore depend decisively on
the prevalence of a conducive climate at the national and international
levels. In this regard, public investment is an indispensable pre-condition
and catalyst for and complement to private investment, involving basically
investment in research and infrastructure.
Demand Issues
Trends in consumption
Domestic consumption (human consumption and other uses) of
agricultural products in LDCs varies widely between food and non-food
products. Non-food products such as raw materials and tropical beverages
are basically produced for export. The little that goes to the domestic
market is destined essentially for local processing industries, which in turn
export the bulk of their produce. In contrast, the domestic consumption of
food products is a large and growing proportion of output. Consumption
of basic foodstuffs in LDCs grew by an annual 2.3 percent during 1990-97

(Annex Table 1), below the population growth rate of 2.6 percent. The
consumption of cereals met by domestic production declined from 96
percent in 1970-80 to 85 percent in 1990-98.
For many commodities, production has not kept up, and perhaps
will not keep up, with demand. For example, during the 1960s LDCs were
net exporters of rice (2.4 million tonnes), but by the mid-1990s they were
importing 3.5 million tonnes, a figure that is projected to rise to over 7.5
million tonnes by 2015. Similarly, net imports of wheat increased from
1.1 million tonnes in 1961-63 to 6.1 million tonnes in 1995-97 and are
projected to reach 15 million tonnes by 2015. Cassava and plantains, the
main staple food in many African LDCs, also showed an increase in net
imports in the 1990s.
In sum, trends in production, consumption and trade amply
demonstrate the increasing import dependence of LDCs for food. FAO
projections for 2015 suggest that this dependence will continue to
increase. If the requisite commercial imports cannot be ensured, or if food
aid cannot make up for the shortfall, per caput food consumption will
inevitably fall.

There are three determinants of demand growth: population, per
caput income, and the income elasticity of demand. For LDCs as a whole,
real GNP per caput has been stable over the last two decades. Between
1989-91 and 1995-97, in only 20 out of the 40 LDCs for which
comparable data are available did it rise. This suggests that the increase in
cereal consumption in most LDCs during 1990-98 was due mainly to
population growth. Population growth rates in LDCs are among the
highest in the world. For LDCs as a whole, the rate increased from an
annual 2.5 percent in 1980-90 to 2.6 percent in 1990-96 and is projected
to remain high (2.3 percent) during 2000-2015. Their food security is thus
threatened unless production performance and/or food import capacity can
be improved significantly over the levels of the past 10 years.
The capacity to import food is determined by the availability of

foreign exchange, which in turn is determined by export earnings
(essentially from commodities for most LDCs) and by the external
resource flow. Many LDCs suffered because of the fall in prices of their
primary commodity exports during 1990-98. The foreign debt burden also
limits the ability of many LDCs to import, and the situation has been
compounded by the slowing down of the external resource flow.
Food security
The interaction between food supply and demand factors
determines the level of food adequacy. The most widely available and
used indicator for estimating food adequacy levels is per caput dietary
energy supply (DES), which measures the food available to each person
on average in a country. As shown in Table 2 and Annex Table 8, the
DES for LDCs as a group has been very low and has barely risen since
1979. For roughly half of the 44 LDCs for which data are available it has
been below 2 100 kcal/day. This stands in contrast to the progress in other
developing countries and the world as a whole, where food production has
continued to outstrip population growth.
Table 2. Per caput dietary energy supply (DES)
Per caput DES Average annual rate

(kcal/day) of increase
(percent)
1979-81 1989-91 1996-98 1979-81 1989-91
to to
1989-91 1996-98
World 2 540 2 700 2 780 0.6 0.4
Developing 2 300 2 510 2 650 0.9 0.8

countries
LDCs * 2 040 2 080 2 070 0.2 -0.1
of which in :
Africa 2 060 2 010 2 000 -0.2 -0.1
Asia 2 020 2 180 2 180 0.8 0.0
Pacific 2 380 2 340 2 410 -0.2 0.4
Caribbean 2 040 1 770 1 840 -1.4 0.5
* Excluding Bhutan, Equatorial Guinea, Samoa and Tuvalu, for which data were not available.
Source: FAO.
FAO estimates show that the incidence of chronic undernutrition

(undernourishment)14 is high in LDCs (Annex Table 9). Between 1969-71
and 1996-98, the proportion of undernourished in total population in
LDCs increased from 38 percent to 40 per cent, while the absolute number
of undernourished is estimated to have increased from 116 million to 235
million.
14
The term “undernourished” in the context of the World Food Summit 1996 refers to
persons whose food consumption level is inadequate in terms of calories consumed
relative to requirements on a continuing basis.
Interlinkages: Agricultural Growth, Rural Development and

Poverty Alleviation
Nature of the linkages

With 70 percent of the world’s extremely poor and food-insecure
people living in rural areas, the role of agricultural and rural development
in the eradication of poverty and food insecurity is crucial. As agriculture
is the predominant economic activity in rural areas, the rural poor strongly
depend on it for their income and food entitlements. The dependence is
most marked in countries where food insecurity is most widespread, and
where there often exists a combination of low incomes, a food deficit and
high external indebtedness. Most such countries are LDCs.
National experience of economic growth and poverty alleviation
reveals that: i) poverty alleviation is positively related to overall economic
development; ii) agricultural growth in developing countries has stronger
effects on poverty alleviation than growth in other sectors; iii) it alleviates
poverty mainly through the labour market, especially through increases in
wages; iv) its impact on poverty reduction lessens if there is growing
income inequality; and v) rural growth reduces both urban and rural
poverty.
The potential for agricultural growth to alleviate rural poverty in
the LDCs is exemplified by the fact that, on average, agriculture employs
about 75 percent of the total labour force (over 80 percent in several
cases) and that the percentage of poor in the rural areas is generally much
higher than in the urban areas (see Annex Table 10). Hence, agricultural
growth can increase the income of the poor both directly, through the
additional demand for labour, and indirectly, through input, output and
expenditure linkages with non-farm productive activities in the rural
sector.
The rural non-farm sector constitutes the connecting link between
agriculture, rural development and rural poverty alleviation. In many low-
income countries, it is expected to be closely linked to agriculture in
numerous upstream and downstream productive activities. Earnings from
participation in such activities may constitute a substantial share of the

overall income of rural populations. Annex Table 11 shows data on non-
farm income and its distribution (when available) by (a) income
percentiles (b) zones, according to the type of agricultural production; and
(c) types of product cultivated. It covers a limited number of LDCs in
Africa and Asia for which data are available.
Thus, farm and non-farm rural activities should be considered
complementary in terms of financing investment in both sectors: savings
derived from farm activities can constitute start-up capital for rural non-
farm activities; at the same time, savings derived from non-farm activities
can be used to acquire inputs and adopt improved agricultural
technologies.
Does the type of agricultural growth matter?

The shares of non-farm income reported in the foregoing
paragraphs demonstrate, if anything, that the terms rural and agricultural
growth are not synonymous and that non-farm income is an important
component in the livelihoods of rural households. Thus, when considering
the impact of agricultural growth on poverty and rural development, its
effects through production, income and expenditure linkages on rural non-
farm income and employment should also be taken into account.
Approaching the question of agricultural growth and poverty reduction
within the more general rural development framework described above
makes the analysis more complex.
One example is that of productivity-driven agricultural growth
achieved through capital-intensive technologies. Such a pattern of
productivity growth may not result in poverty alleviation for two reasons:
(a) poor farmers lack the necessary access to capital that would enable
them to benefit from the new technologies; and (b) agricultural growth is
not translated into increased demand for labour and thus landless rural
labourers do not benefit. Consequently, the agricultural growth does not
directly benefit the poor. On the other hand, a more complete examination
of the effects of agricultural growth should take into account the effects on
rural incomes and poverty via the rural non-farm sector. Specifically, is
increased agricultural output associated with increased demand for
services provided at the local level (input provision or services or output
processing and distribution)? Is additional income resulting from
increased growth spent on locally produced goods?
In cases of extreme inequality in the distribution of productive
assets and a capital-intensive technological change it can be expected that
there will be no indirect effects (through various linkages of agriculture to
the non-farm sector) and most probably the poor will not benefit.
Agricultural inputs are likely to be “imported” (from urban areas or
abroad) while the consumption patterns of those who benefit from
agricultural expansion are likely to involve a large proportion of high-
value commodities and luxuries that are not produced locally. Input,
output and expenditure linkage effects can thus be expected to “leak out”
of the rural areas.
On the other hand, the benefits of agricultural growth based on
improvements in labour productivity are likely to be widely diffused in
the rural areas. Such technologies (and the gains from them) may be
accessible to poorer farmers, while landless labourers benefit from higher
wages or employment. Input, output and expenditure linkages should
favour the rural sector, since landless labourers and smallholders are
likely to acquire inputs or services and spend additional income in the
rural areas, thus increasing secondary income effects through the
expansion of rural non-farm activity and demand for labour.
Another distinction concerning the types of agricultural growth
concerns that of “food versus staples”. The stylised fact that most of the
rural poor derive income from the production of staples in the form of
either food or other entitlements (i.e. income derived from employment in
the production of staples or from activities linked to it) has prompted the
“promotion” of staples production (in terms of research on ways of
increasing staples yields) in preference to the production of cash or
commercial crops. In the context discussed above, such an argument
would imply that staples production has stronger linkages to the local
economy and thus a stronger effect on reducing poverty and enhancing
food security than non-staples. Such indeed may be the case for rural
areas with limited access to food or other markets (such as urban and
export markets). In such situations, linkages created by productivity-
induced increases in food production are very strong, as there are no
“leakage” effects.
Nevertheless, no general statement can be made in favour of or
against staple commodities. There is no evidence that shifts to cash (or
commercial) crops have been associated with increases in poverty. Cash
crops have much to offer in the way of both higher income and greater
income diversification opportunities. In the presence of higher risks
associated with reliance on the market for both food and income, farm
households can be expected to diversify their resources between them.
Critical requirements for successful diversification opportunities are that
channels for the supply of inputs and marketing of outputs are opened up
and that there should exist well-functioning rural financial markets.
In sum, the role of agricultural development in overall economic
development and in eradicating poverty and food insecurity in LDCs is
crucial. Measures to that end include: raising agricultural productivity and
encouraging other sources of rural development, notably through rural
infrastructure; enhancing human capabilities in rural areas through health,
education and sanitation services and access to productive resources, with
stress on gender equality; and preserving the capacity of the natural
environment to sustain the present population and future generations.
II. EXTERNAL ECONOMIC ENVIRONMENT:

OPPORTUNITIES AND CHALLENGES
Given the rapid pace of globalization, the external economic

environment presents major challenges as well as opportunities for
agriculture in LDCs. While access to larger and more affluent markets
favours growth and development through trade, the LDCs face many
internal supply-side constraints, associated with their economic
underdevelopment, which render their exports uncompetitive. This section
reviews the major trends and patterns of their agricultural trade and
examines the main factors affecting them.
Participation of the least-developed countries in world trade in

agriculture
Salient trends
The marginalization of LDCs in world agricultural markets
The participation of LDCs in international agricultural trade is

insignificant and has been declining. Their share in world agricultural
exports has dropped steadily, from 3.3 percent in 1970-79 to 1.9 percent
in 1980-89 and a mere 1.5 percent in 1990-98 (Table 3). Their share in
world imports has also declined, though much less so, from 1.8 percent in
1970 to 1.6 percent in 1998. While world agricultural trade (including the
intra-trade of EU) expanded at an average annual rate of over 5 percent
during 1990-98, exports from LDCs grew by only 3.9 percent, in contrast
to 6.6 percent for the developing countries as a whole. Their market share
of many key agricultural commodities has fallen significantly from the
1980s to the 1990s, by over 30 percent for such commodities as timber,
coffee, tea and cocoa and about 20 percent for cattle.
Table 3. Trend in agricultural exports of LDCs and other developing

countries
LDCs All
developing
countries
Average annual rate of export growth (percent)
1970-79 9.5 16.0
1980-89 -1.4 2.4
1990-98 3.9 6.6
Share of world agricultural exports (percent) 1
1970-79 3.3 33.8
1980-89 1.9 31.0
1990-98 1.6 30.0
1
World exports include intra-EU trade.
Source: FAOSTAT (2000).
Commodity and geographical concentration of exports

In addition to their small and declining share in world agricultural
trade, LDCs’ agricultural exports consist largely of a few low value-added
primary commodities. On average, the top three export items, which are
predominantly primary agricultural commodities, account for over 65
percent of total export earnings. The major agricultural exports of LDCs
include coffee, cotton, jute, fish and seafood, tropical wood and bananas,
mostly in unprocessed form. Moreover, the exports are concentrated on
only a few markets, of which EU is by far the largest (36 percent),
followed by the United States and Canada (21 percent) and Japan (6
percent). Therefore, conditions of market access to these countries are of
critical importance in defining their trading opportunities.
Dependence on food imports

The LDCs are increasingly dependent on imports to meet their
consumption requirements for their basic food commodities. For example,
their ratio of cereal imports (including food aid) to total cereal food supply
has increased from 5 percent in the 1960s to about 15 percent in the
1990s. For 25 out of the 42 LDCs for which comparable data are available
for 1990-98 the ratio exceeded 30 percent.
In addition, for LDCs as a whole food imports accounted for 15
percent of total merchandise imports during 1996-98 (Annex Table 12).
Cereals dominate the food import bill, accounting for about 52 percent.
The volume of cereal food aid fell from about an annual 5.4 million tonnes
in 1989-91 to 3.6 million tonnes in 1997-99.
FAO projections for 2010 suggest that the food gap will continue
to widen and will have to be filled by imports, including food aid.
Whether the LDCs will be able to finance these growing imports depends
on a number of factors, the most important in many cases being their
export earnings and external resource inflows. In most of these countries
export earnings have stagnated over the last two decades, mainly because
of the fall in commodity prices. From 1980-82 to 1995-97, per caput
merchandise export earnings for LDCs as a whole increased by only US$2
per year (from US$35 to US$37), whereas for other developing countries
they doubled over the same period, to reach US$394 per annum. The
foreign debt burden has also limited the ability of many LDCs to import.
In 1995, the simple average of the debt-service ratio was 23 percent for 41
LDCs for which data are available.

The marginalization of LDCs in world agricultural trade is
reflected in the slow growth of their agriculture sector as well as of their
overall economy, slower even than that of other developing countries. As
shown in Section I, one reason for this is the inherent structural and
technological constraints facing these countries as well as the pursuit of
inappropriate policies, along with various domestic socio-political factors.
Slow growth and the low level of participation in world markets also
reflect the external economic environment they face.
Commodity markets and terms of trade

The primary agricultural commodities on which many LDCs
depend heavily (tropical beverages and agricultural raw materials) have
experienced sluggish world demand and a downward trend in real prices.
Two factors were identified as causing a long-term decline in commodity
prices: i) low income elasticity of demand, mainly for food; and ii)
declining intensity of raw materials use in manufacturing. In addition,
LDCs exporting largely raw materials are particularly prone to changes in
commodity markets. For example, Benin, Chad and Mali lost 25 percent
of their total export earnings from 1990 to 1992 following a drop in the
world price of cotton by 34 percent.15
Recent studies show that the downstream marketing, transport and
distribution of some agricultural commodities are dominated by few
multinational enterprises (MNEs), a handful of which account for 85
percent or more of world trade in wheat, coffee, cocoa, grains, jute,
tobacco and tea.16 Given the high costs associated with these downstream
activities, the growers’ price represents very low shares of the final
product, ranging from 4-8 percent for raw cotton and tobacco to 11-24
percent for jute and coffee.
External assistance to agriculture

In almost all LDCs official development assistance (ODA) is the
main catalyst of investment in agriculture. However, such external
assistance to the sector has been on the decline since the early 1990s, the
average annual amount having fallen by 20 percent from 1981-1990 to
1991-99 (Annex Table 13). Although total ODA to LDCs rose over the
same period the share received by the agricultural sector declined from 20
percent to 13 percent. During the 1995 to 1999 period, there was slight
increase in multilateral commitments, particularly from IFAD and
15
OECD, “Market access for the LDCs: Where are the obstacles?” OECD/GD (97) 174,
Paris, 1997.
16
Ibid.
regional development banks, with some decline in bilateral commitments

(Annex Table 14).
Reversing this downward trend is crucial to ensuring that
appropriate agricultural intensification strategies can be pursued in the
future. In particular, adequate external assistance is essential to enhance
agricultural productivity, which is dependent on the availability of
sustainable alternative technologies and farming practices that will not
further degrade the natural resource base.
Given the importance of the agricultural sector in LDCs for
poverty reduction and economic growth, current initiatives to provide
financial assistance through targeted debt relief and other measures could
in part be directed to supporting efforts to develop their sustainable
agricultural potential.
Trade preferences
All LDCs are beneficiaries under the Generalised System of
Preferences (GSP). In addition, the majority receive special treatment
under other schemes - e.g. from the European Community in the context
of the Lomé Convention and its successor Cotonou Agreement described
below. The Caribbean Basin Initiative (CBI) of the United States is a
similar preferential arrangement, but involves only one LDC.
To the extent that the UR Agreements lowered tariffs, the
preferential margin enjoyed by LDCs is eroded. Assessments vary as to
the extent of erosion and its impact on trade flows and welfare, but the net
impact is generally estimated to be very small. In any event, available
statistics suggest that, with the exception of a few countries, the
preference schemes have not contributed significantly to generating export
growth of the beneficiaries or improving their trade shares. While this has
been partly because of the various restrictions in the schemes (e.g. in
respect of product coverage, quotas, and rules of origin), supply-side
constraints appear to have played a greater role.
In June 2000 the EU and the ACP States signed a successor

agreement to the Lomé IV Convention, referred to as the “Cotonou
Agreement”, which stresses compatibility with the WTO trading regime
and envisages replacing the Lomé non-reciprocal preferential trading
arrangements by regional free trade areas (RFTAs) between EU and
regional groupings of ACP countries after a transitional period. One of the
major features of the Cotonou Agreement is that it extends the non-
reciprocal preferential access for certain ACP agricultural and other goods
to the EU market for a transitional period of eight years (March 2000 to
end of 2007). The commodity protocols (sugar, beef, bananas, and veal)
traditionally annexed to the Lomé Convention were included in the new
Agreement. In addition, the Agreement provides for cooperation between
ACP and EU in trade-related areas such as competition policy, intellectual
property rights, standards of certification, sanitary and phytosanitary
measures, trade and environment, trade and labour standards, consumer
policy and public health. It was felt that the switch from Lomé preferences
to RFTAs could be particularly detrimental to African LDCs. However, in
view of the many provisions of the Cotonou Agreement that are geared
towards enhancing the capacities of ACP countries in production, supply
and trade, it was argued that it could offer more scope for improving
export growth in LDCs generally.
In addition, LDCs in Africa can also benefit from the United
States Trade and Development Act of 2000, which extends certain trade
benefits to sub-Saharan African countries. The Act is much less
comprehensive than the Cotonou Agreement, and the main difficulty that
is likely to arise in practice relates to eligibility requirements and rules of
origin.
More recently, the EU announced a unilateral trade concession
that would eliminate all existing tariffs and quotas on all imports from
LDCs. Referred to as the 'Everything But Arms' (EBA) proposal, the
intention is to extend complete access to all exports from LDCs except
arms and ammunitions, with a three-year phase-in for 'sensitive' goods -
i.e. bananas, sugar and rice.
Regional trade agreements

Regional integration continues to be an issue of great concern in
LDCs and is viewed as a vehicle for promoting cooperation in agriculture
and enhancing food security at the national and regional/subregional
levels. For LDCs as a whole, there is a potential for their participation in
intra-regional trade in agricultural products that has not been fully
exploited and which could be particularly beneficial in view of the small
size of their domestic markets.
The LDCs have been parties to numerous regional trade
agreements (RTAs), the vast majority of which are among African
countries. Despite their many provisions regarding the removal of trade
barriers, the level of intra-regional agricultural trade in the majority of
RTAs of which LDCs are members has stagnated at a low level. This has
particularly been the case in Africa, where LDCs predominate (See Annex
Table 15).
All such trading efforts have come up against structural and policy
obstacles. With a few exceptions, there is not much diversity in natural
endowments among countries within most of the existing RTAs.
Complementarity of resources and contrasts in comparative advantage are
clearer between than within the country groupings. Other difficulties
include inadequate international transport and communication facilities
and poor information about markets and investment opportunities.
Moreover, the absence or inadequacy of a system for standardized
packing, grading and quality control systems at the regional level
continues to frustrate efforts to expand trade and establish transparent
information systems. Improvement and harmonization of inspection and
certification systems are among the missing ingredients for promotion of
intra and extra-regional trade. Inadequate financing and guaranteeing of
regional exports/imports has also been a factor.
Essential requirements for promoting intra–regional trade from
which LDCs can benefit are thus the opening up of regional agricultural
markets, developing export standards and infrastructures and securing
greater coordination among LDCs in general and within and between

existing subregional groupings.
Agricultural prospects in the light of the WTO agreements and

their aftermath
The major external challenge facing LDCs is their ability to
exercise their rights and meet their obligations under the new multilateral
trading system. Given their high dependency on agriculture for jobs, food,
national income and export earnings, they have a large stake in the current
and future trade negotiations in agriculture. Multilateral reforms
undertaken in the WTO context both expand their opportunities and
amplify the costs of their inherent structural weaknesses and policy
failures.
Of the 48 LDCs, 29 are at present WTO members. Six more are in
the throes of accession and three have observer status. The Agreement on
Agriculture that emerged from the Uruguay Round began a process of
bringing the trade-distorting agricultural policies of developed countries
under multilateral rules and disciplines.17 This section examines the
implications of that Agreement and of other WTO Agreements for
agriculture in LDCs.
The major factors contributing to the crucial importance of
multilateral agreements and negotiations on agriculture are i) the
predominant role of agriculture in their economies; ii) the relatively high
degree of openness of most of their economies; and iii) their increasing
reliance on international trade for satisfying domestic food consumption
requirements.
17
Other Agreements which bear on agriculture include: the Agreement on the Application
of Sanitary and Phytosanitary Measures (SPS), the Agreement on Technical Barriers to
Trade (TBT); the Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS), and the Decision on Measures Concerning the Possible Negative Effects of the
Reform Programme on Least Developed Countries and Net Food-Importing Developing
Countries.
Impact of the Agreement on Agriculture

For a number of reasons it is difficult to assess, in either
quantitative terms or in terms of policy implications, the probable impact
on agriculture in LDCs of the Agreement on Agriculture18. In respect of
policy changes the LDCs, along with all other WTO members, have had
to remove non-tariff measures and bind all agricultural tariff lines, but
they were exempt from tariff reductions. Most LDCs generally bound
their tariffs at levels above the applied rates (Annex Table 16). All have
declared that they have not provided any support to agriculture that is
subject to the reduction commitment. In fact, many do not subsidize
agriculture at all but tax the sector explicitly, by taxing production and
exports of many commodities, or implicitly, by giving higher protection to
industry. Overall, the scope for LDCs to support agriculture through
measures exempt from the reduction commitment (including green box
measures and the de minimis provision) is considerable; however, such
measures require financial outlays which most LDCs cannot afford.19
Research undertaken in FAO and elsewhere indicates that, on the
whole, trade liberalization under the UR could worsen the terms of trade
for LDCs, which are mostly net importers of food and net exporters of
tropical products. On the export side, changes in market access conditions
resulting from the UR are not considered to contribute markedly to
boosting global trade and raising the prices received for most traditional
primary agricultural commodities exported by the LDCs. On the one hand,
the impact on tropical commodities, intensively produced and exported by
the LDCs, is likely to be modest, as the level of protection was already
relatively low for most of these commodities. On the other hand, for
temperate-zone products, such as vegetables and fruits and cereals, the
18
Among these reasons are the difficulty to establish a counterfactual scenario with which
to compare actual outcomes, the relatively short period involved for analysis and the
absence of steep reductions in support and protection.
19
See FAO, Rome (2000), Multilateral Trade Negotiations on Agriculture. A Resource
Manual: II - Agreement on Agriculture.
effects of trade liberalization are potentially larger, but they are not major
export items for most LDCs.
As for food products, the expected increase in world market prices
for basic food staples and other selected agricultural commodities is
projected to have little effect on domestic food production in LDCs
because of the severe supply-side constraints and in consequence their
food import bills will increase.
Opportunities for export diversification

It is generally acknowledged that supply side problems have
historically played a dominant role in limiting export diversification by
LDCs into non-traditional commodities and processed products. Indeed,
many of today's developing countries with diversified agricultural export
structures were at one time heavily dependent on primary agricultural
commodities, e.g. Malaysia, Thailand, Indonesia and Chile. They
achieved this diversification despite facing a similar external trading
environment common to all developing countries; indeed, in some
respects it was worse as, by and large, they did not benefit from
preferential trading arrangements. Many LDCs failed to diversify their
exports despite their having received trade preferences from the developed
countries.
The UR initiated the process of opening up new opportunities for
export diversification in agriculture, through, inter alia; across-the-board
reductions in MFN tariffs on agricultural products; reduced tariff
escalation, albeit limited; and the strengthening of trade rules, particularly
those on sanitary and phytosanitary measures and technical barriers to
trade. As discussed above, prospects for growth in LDCs are more
promising in new crops and processed products than in traditional primary
commodities.
While many traditional primary commodities exported by the
LDCs suffered from slow growth in world import demand and a decline in
real world prices, world trade in several non-traditional agricultural
commodities (NTCs), particularly, but not exclusively, horticultural

products, has been growing relatively fast and exports of such products
are becoming increasingly important for some developing countries. 20
Another potentially beneficial effect of the WTO Agreements for
the development of value-added industries in LDCs is the reduction in
tariff escalation. Tariffs have generally been higher on processed
agricultural products than on primary commodities. This tariff wedge
between a processed product (e.g. orange juice) and its corresponding
primary commodity (e.g. oranges) has been one of the obstacles in
commodity-exporting countries in their efforts to establish processing
industries for higher value exports. An analysis of tariff escalation has
shown that tariff wedges have on average fallen from the pre-UR level of
23 percent to 17 percent.21
While LDCs do export a range of processed products, such as
coffee extracts, cocoa pastes, crude vegetable oils and leather, the post-
UR tariff rates on these products are relatively low and the lessening of
tariff escalation will consequently not provide many additional export
opportunities. On the other hand, tariff escalation has been substantially
reduced for many important processed commodities that LDCs do not
export at present but could well do so in the new situation. Such potential
exports include: cigarettes, some dairy products, and certain animal
foodstuffs to EU; wine, some dairy and meat products to Japan; and
orange juices and certain dairy products to the United States. Sanitary and
phytosanitary standards play an increasingly prominent role in trade in
processed products, especially foodstuffs, and this is an area where LDCs
will need to do much more if they are to exploit the new opportunities.
20
For example, an FAO study on EU, Japan and the United States has estimated that their
total value, which amounted to 19 percent of world agricultural imports in 1994, grew at a
rate of 10.9 percent per annum during 1985-94, compared to 5.8 percent per annum for
other agricultural imports. (FAO, Committee on Commodity Problems, Impact of the
Uruguay Round on agriculture: Follow-up activities, CCP 97/16, February 1997).
21
See Lindland J. (1997), The impact of the Uruguay Round on tariff escalation in
agricultural products, FAO, ESCP/No. 3.
Many other issues have arisen from the implementation of the UR

Agreements, as well in the new negotiations on agriculture, that are of
particular concern to LDCs in respect of improving their market access
and developing domestic export capacities, some of which are
summarized below.
Improving market access for agricultural exports
Many LDCs indicated that the AoA has not brought about any
real improvement in market access for their agricultural exports, mainly
because of the erosion of their tariff preferences, the persistence of tariff
peaks and tariff escalation in some sectors of particular interest to them
and the high SPS standards imposed in the importing countries. In the
current negotiations on agriculture they look to ensure that there really
will be an improvement in market access, especially for those products
with a high growth potential and high value. Thus, they have an interest in
reducing border protection and tariff escalation in the developed and
developing countries and in ensuring that the beneficiaries of preferential
arrangements are compensated for the loss or erosion of such preferences
and assisted in adjusting to a more competitive environment.
Special and differential treatment

Under the WTO agreements, LDCs have received special
consideration in respect of market access, implementation of their various
commitments and technical and financial support. However, LDCs have
been disappointed with the limited implementation of the special and
differential treatment (SDT) provisions of the agreements, particularly as
regards financial and technical assistance. This is particularly the case
with respect to the SPS and TBT Agreements. Because SDT provisions
were often expressed as “best endeavour” obligations, many LDCs have
suggested that these should be included as binding commitments in a
development box.
Food safety and quality standards

Another major challenge faced by LDCs is raising the SPS/TBT
standards of their exports to at least internationally recognized levels.
Because of their poor capacities in scientific research, testing, conformity
and equivalence, they face difficulties in meeting international safety and
quality standards. The task is even more daunting when the developed
countries, on risk assessment grounds, adopt higher standards than those
currently recognised by international standard-setting bodies. Moreover,
rising consumer concerns in the affluent countries over food safety and
quality compound the difficulty of the developing countries in meeting
ever higher standards. Fulfilment of the promises of financial and
technical assistance to LDCs, and other developing countries, in respect of
SPS/TBT standards is thus important to them.
Compliance with the TRIPS Agreement

The requirement for countries to provide for the protection of
plant and animal varieties, either by patents or by effective sui generis
measures, presents a number of challenges for developing countries. The
lack of plant variety protection and of sufficient capacity to provide rapidly
such protection in most developing countries may hamper their ability to
comply with this requirement. In addition, patentability of plants and
animals raises a range of controversial issues relating to its implications
for food security, rights of local communities and indigenous peoples,
biosafety and sovereign rights over genetic resources. The provision of the
TRIPS Agreement are also significant for input industries and may, in the
short to medium-term, increase costs of developing and acquiring farm
technology. Likewise, debates on genetically modified products, which
involve also the SPS and TBT Agreements, continue to require analysis of
their implications for the development and dissemination of new
technologies and their consequent effects on small farmers and low-
income countries.
Food security
The special situation of LDCs was recognised in the Ministerial
Decision on Measures Concerning the Possible Negative Effects of the
Reform Programme on Least Developed and Net Food-Importing
Developing Countries. To date, the Decision has not been activated,
despite the fact that food aid has dropped to very low levels and food
import bills of LDCs and NFIDCs have risen. Implementation has so far
been hampered by several factors, including: the requirement for
providing evidence that the reform process led to difficulties; and the
variety of instruments envisaged under the Decision to respond to such
needs, without the respective responsibilities of all concerned being
clearly specified. The basic consideration, however, is that the Decision
addresses a transitional problem, whereas the food security problem in the
LDCs is a long-term and complex one, encompassing broader
development issues that go beyond trade.
Changes in the global economy are raising the stakes for domestic
agricultural policy reforms in LDCs. The main concern is that while the
WTO regime imposes disciplines on subsidized agricultural exports, it is
likely to hurt poor agricultural producers in LDCs, who will become more
vulnerable to instability in world prices as border protection is lowered.
Although price instability on world markets affects all countries, the
consequences can be much greater for LDCs for two reasons: i) a large
proportion of the rural population still earns a living from food
production; and ii) food accounts for a large share of household
expenditure.
III. POLICIES TO FULLY EXPLOIT AND DEVELOP THE

AGRICULTURAL POTENTIAL
Sustained and accelerated development of agriculture is the key to

economic development and poverty reduction in the LDCs. The preceding
sections shown that they have considerable agricultural potential, but that
it has not been realized for a number of reasons, including structural and
technological constraints, inappropriate domestic policies and an
unfavourable external economic environment. As a result, the growth of
these economies has been slow, undernourishment has been increasing
and the marginalization of these countries in the global economy has
continued.
The challenges facing LDCs are numerous enough to strain their
capacity to design and implement effective policies and institutions for
agriculture. However, development is a cumulative process, with success
in one area opening up opportunities in others. The focus of this section is
on the identification of measures to alleviate the supply-side constraints,
and to improve agricultural productivity and competitiveness in the
framework of a strategy that is poverty-alleviating, balanced, sustainable
and based on comparative advantage. The analysis draws on FAO’s field
experience, including its policy assistance work in the LDCs, together
with new policy approaches for accelerated agricultural development
based on the past 30 years of development experience. FAO’s technical
assistance in various agricultural areas to LDCs is described in detail in
Annex I.
Lessons from experience

In view of the critical importance of agriculture in the majority of
the LDCs, it is important to understand how their agricultural growth can
be accelerated, the priorities that are involved and the impact of faster
growth on poverty levels.
Over the past three decades there have been wide variations in the
nature and components of growth among different countries and between
sub-sectors of agriculture within them. However, in a number of cases
there has been rapid growth of the agricultural sector, with major effects
on poverty reduction and national economic development, from which
some useful and relevant lessons can be drawn. One important lesson is
that it is necessary to establish priorities and a sequencing of activities.
Governments can only do a certain amount at any given time. Most
activities must be taken up by the private sector and through the operation
of markets so as to free governments to concentrate on those areas where
the private sector cannot be expected to come forward.
There is no unique set of physical conditions for rapid agricultural
growth. Nor is there a single set of activities that will guarantee success. It
is nevertheless possible to identify common patterns and themes from
success stories:
− The three principal means of increasing output (area expansion,
changes in output mix, and technical change) vary in importance
and are a function of the stage reached in growth. Possibilities of
area expansion are finite: as more land is cultivated area
expansion becomes of declining importance. But changes in both
output mix and technology preserve their importance throughout
the development process (neither is effective on its own), and
require a dynamic and flexible sector;
− It is necessary to provide appropriate incentives to farmers and to
ensure conditions that permit them to respond to the incentives.
To that end there must be sound macro-economic policies
allowing both trade in agricultural products and their supply to
the domestic market and an institutional and physical
infrastructure that support broad-based change (by facilitating
access to land, rural finance, technical knowledge,
communications and transport);
− The commodity base for agricultural growth can vary (for
example, it may consist of traditional or non-traditional exports,
or of staple foods), but intensification and a switch away from
staple foods are natural as economic growth spreads its net more
widely, stimulating local demand for more labour-intensive, high

income-elastic products such as vegetables, fruit and livestock
products. The agricultural sector thus needs to be dynamic and
flexible;
− Technical change also needs to be a continuing process, but in
staple food production this is a large and complex undertaking to
which the private sector and producer organizations are not well
suited, although experience has demonstrated that it cannot be left
solely to public bodies. An indigenous system for generating
technical change is necessary if the technology is to match
changing local needs;
− The effects and benefits of agricultural growth are diluted by high
population growth and/or by its being limited to small
geographical areas or regions or to a small number of
commodities. Linkages and multipliers between agricultural and
non-agricultural activities are also important but may be absent.
For broader growth and poverty reduction, agricultural
development needs to be broad-based, with small/medium-scale
rural industries. The development of such industries requires
appropriate industrial policy and is a further justification for
improving rural infrastructure, services and institutions.
Challenges for agricultural development in a globalized

economy
The situation facing LDCs and their farmers today may be more
difficult in a number of ways than that which was faced by developing
countries that achieved sustained agricultural growth in the last three
decades. As discussed in Sections I and II, the new and emerging
challenges confronting them can be identified under three broad headings:
overcoming their marginalization resulting from integration of markets
due to globalization and liberalization; adapting to technological change;
and coping with the new institutional environment.
Globalization of markets: The economies of LDCs now have to

compete in a more fiercely competitive world market. The gradual
removal of trade barriers, rising demand for higher quality products and
higher standards, the continuous erosion of trade preferences and the
costly compliance with the new trade rules are particular problems that
hamper the competitiveness of producers in LDCs in both world and
domestic markets. Because of globalization and liberalization, LDCs are
also becoming more vulnerable to changes in world market conditions, on
account of their small economic size and their increasing reliance on
imports for food supplies. Their problems have been compounded by the
long-term decline in real prices of their major primary commodity
exports, despite some temporary increases experienced in the early
22
1990s. The consequent decline in the commodity terms of trade has
reduced both the incentives to engage in the production of tradables and
the gains and economic stimulus from such production.
Technological challenges: Keeping pace with the increasing
domestic demand for food, meeting requirements for enhancing
competitiveness and ultimately raising rural incomes, necessitate raising
agricultural productivity. As discussed in Section I, most LDCs are at an
early stage of agricultural technology and the potential to increase
productivity is enormous. However, sustained agricultural growth in most
cases requires more than the ingredients of the ‘green revolution’. In
particular, it calls for substantial investment in irrigation and rural
infrastructure, human development and institutions. New developments in
biotechnology may pose further threats to export-based growth in LDCs if
the new technologies associated with them result in a sharp increase in
productivity in more advanced economies, thereby increasing production,
pushing down prices, and giving them a competitive advantage over
producers in LDCs.
22
In 1999 the combined price index of soft commodities (i.e. all commodities other than
minerals and metals and petroleum), deflated by the price index of manufactured exports
of developed countries, was one half of the average for 1979-1981, which was about the
same as the average for 1970. For tropical beverages and basic food, the decline was
steeper. See the report by UNCTAD, “World commodity trends and prospects”, distributed
to the United Nations General Assembly under cover of A/55/332, August 2000, sect.II.
The institutional environment: The institutional environment (both

nationally and internationally) is also very different from the past. As
noted in Section II, international trade is subject to WTO disciplines and
takes place in a globalized context. The roles and modus operandi of the
IMF and the World Bank have also changed, associated with liberalization
and structural adjustment programmes in member countries. Perhaps the
most important consequence has been the sweeping away of much of the
public sectors’involvement in agricultural research and extension and in
commodity and financial markets. Inefficient and ineffective as it often
was, the role of state intervention in supporting agricultural growth in
earlier success stories is now clearly recognized, and has resulted, for
example, in arguments being put forward for a reassessment of the
23
performance of state marketing boards in Africa. However, current
attitudes among donors and within LDCs do not favour efforts to involve
the State in the search for innovative solutions to some of the institutional
problems that it has successfully addressed in the past. Moreover, some
donors and governments perceive previous unsuccessful attempts to
stimulate agricultural development as evidence that policy support to
agriculture is not an important priority in seeking broad-based, poverty-
reducing economic growth, an attitude that is reflected in the reduced
share of ODA going to agriculture.
Against all these difficulties there are also some new opportunities
for agriculture in LDCs. New technologies are bringing down the cost of
communications dramatically,which should benefit remote, more sparsely
populated areas with poor roads. Biotechnology (with appropriate
safeguards) offers opportunities for more rapid technological advances if
there is sufficient investment in their application to the crops and
problems in LDCs. In addition, globalized markets and the
implementation of trade agreements should bring benefits for LDC
23
See, for example Dorward, A, Kydd, J and Poulton, C. (1998), “Conclusions: New
Institutional Economics, Policy Debates and the Research Agenda” in Dorward A, Kydd J
and Poulton C (eds), Smallholder Cash Crop Production under Market Liberalisation: A
New Institutional Economics Perspective, CAB International, Wallingford; and Reardon,
T, Barrett, C, Kelly, V and K. Savadogo (1999), “Policy reforms and sustainable
agricultural intensification in Africa”, Development Policy Review,. Vol. 17. pp. 375-395.
exporters if they can be assisted in overcoming their supply and

competitiveness contraints. Policy makers may be swinging back to a
more balanced and nuanced understanding of the importance of
agriculture and of the potential roles (and pitfalls) of state support.
Measures to accelerate agricultural development and trade

competitiveness
This section outlines some general recommendations for both
national policy actions and international actions for removing supply
bottlenecks, boosting competitiveness and alleviating poverty and food
insecurity in LDCs. The proposed policies may differ widely in their
relevance to different countries, depending on the nature of their agricultural
development problems, resource availability and economic conditions.
General measures and strategies to support agricultural

development
First, emphasis needs to be given to increasing the production of
tradable products, which is an essential component of agricultural growth
and normally the driving force behind it. This calls for an appropriate set
of macro-economic policies appropriate to the country’s specific
economic conditions, adoption of a technology suited to current farm
conditions, and a communications infrastructure and marketing and
institutional arrangements that support farmers’ access to seasonal and
longer-term capital and inputs and provide them with strong price
incentives. Determining the most appropriate respective roles in this
regard for government agencies, donors, civil organizations, and
commercial entities requires an imaginative and innovative approach, with
greater emphasis on policy support and sharing of best practice (as is
done, for example, through the FAO South-South partnership

programme).24
Technology, resource use, institutions, knowledge and markets
need to be adapted to deal with bottlenecks or constraints affecting
particular commodity systems, in order to respond to problems of natural
resource exhaustion or degradation and ensure that advantages of new
opportunities are taken through diversification. Local technological
research capacity may be important in this respect, but policies and
institutions and the ability of farmers to access resources, as noted in the
preceding paragraph, will also be critical. Again, a range of different types
of actors may need to support processes of change, in which governments
may play a critical institutional role. Land reform is a highly
controversial form of institutional change that has not been given much
attention in this paper – but that does not imply that land tenure systems
may not be a serious impediment to growth in particular circumstances25.
Sustained agricultural growth may also be promoted by, in
particular, linkages that promote production of what are non-tradable
products in practice in most LDCs (crops, livestock and forestry products)
for local consumption. This may be further enhanced by economies of
scope in more widespread investment in infrastructure in rural areas and
by farmers, on the basis of suitable institutional arrangements, using
24
At the heart of this programme is an exchange of knowledge and experience among
developing countries. In this scheme, the more advanced developing nations send experts
and technicians to work directly with their counterparts and farmers in other developing
countries (See Annex I, para. 18).
25
Mellor (1995) observed that more equitable land tenure relations may contribute to
growth by strengthening consumption linkages rather than by directly promoting
agricultural productivity per se., although this observation runs counter to the conventional
wisdom of an inverse relationship between farm size and efficiency in land-scarce
traditional agriculture. In sub-Saharan Africa there is often more concern about traditional
land tenure systems inhibiting investment in land improvement and putting it more
productive uses, but the evidence for this is mixed and it is probably not possible to reach
any general conclusions. (Mellor, J.W. (ed) (1995), Agriculture on the Road to
Industrialization. IFPRI/Johns Hopkins).
equipment acquired or developed for cash crop production to enhance

production for local markets.
In order to meet the challenges of new problems facing LDC
agriculture, policy makers need to give renewed emphasis to
understanding and promoting processes supportive of agricultural
research. In addition, tariff protection may be necessary to protect farmers
in LDCs from some of the less benign effects of globalization and to raise
incentives for domestic production. There are also strong arguments for
strengthening the role of the State in promoting efficient and effective
institutional arrangements to support farmers’ access to seasonal finance
and to input and output markets. Finally, there is need for continued
attempts to reform international trade rules with a view to ensuring fuller
participation of LDCs in world agricultural markets.
Recommendations for national and international action

Meeting the new challenges facing agriculture and integrating
LDCs more fully into the world economy will require a renewed focus on
agricultural and rural development. With the support of their development
partners, governments of LDCs may need to formulate or revise and
effectively implement their agricultural development strategies. The basic
elements and priorities of such strategies, include: further emphasis on
macroeconomic and sectoral incentives; strengthening institutional
capabilities; raising and sustaining productivity and competitiveness;
diversifying production and trade; and improving access to foreign
markets.26
This subsection briefly elaborates these priorities, placing stress
on the key measures needed to increase resources available to agriculture
and use them more efficiently.
26
See the series of “National agricultural development strategies towards 2010” prepared
by FAO in 1997 for a number of LDCs.
Macroeconomic and sectoral policies

The challenge facing LDCs is to establish a stable and efficient
policy environment that encourages investment in enhancing the
productivity of agriculture and contributes to bringing about the
necessary structural changes. Many LDCs have adopted policies to
deregulate agricultural markets, reduce price distortions, and allow a
greater role for the private sector. Macro-economic policy is an important
tool in support of agricultural growth. Stable prices (including foreign
exchange and interest rates) are important to provide domestic and foreign
investors with confidence and to allow farmers and traders to take
informed, long-term decisions. At the same time, realistic exchange rates,
low tariffs and effective price systems are required to ensure that
agricultural producers and consumers face price and other incentives that
reflect the comparative advantages, opportunities and resource costs of
society as a whole, and promote productive resource use and investment.
Such measures, although necessary, are not sufficient. Improved
investment incentives also require policies that improve access to markets,
ensure dissemination of information, set standards and provide an
adequate legal and regulatory framework. Strong complementarity
between public and private investment is also necessary to sustain
agricultural growth, with governments investing in sectors having an
important public good element such as research, extension, and
infrastructure – particularly roads, education, norms and standards.
Institutions
The least-developed countries need to undertake policies and
measures aimed at strengthening the ability of their institutions to operate
efficiently. Weaknesses in the structure and capacities of rural and related
institutions are one reason why economic policy reforms have failed to
achieve the desired increase in aggregate agricultural output in many
African LDCs.27 Rapidly changing agricultural technology, specialization,

and trade require a complex set of institutions. Governments must
diagnose these requirements and determine the respective roles of the
public and private sector and how the two complement each other.
Political, legal and economic institutions play a major role in determining
both macro-economic and sectoral policies. Improved formulation and
implementation of these policies often requires wide-ranging institutional
changes.
For the agricultural sector growth requires the development of
appropriate institutional arrangements for overcoming market constraints
for agricultural products (for example, specific contractual arrangements
between farmers and traders). In the context of declining real world prices
for the main agricultural commodities exported by LDCs, improved
mechanisms for the transmission of international prices to domestic
producers is of key importance. The involvement of an increasingly
competitive private sector in these various commodity markets has driven
down margins and allowed greater returns to producers.
Enhancing productivity and competitiveness

The experience of countries with a similar agroecological base to
that of LDCs - maize in Zimbabwe, rice in Viet Nam, horticulture in
Kenya, cocoa in Cote d’Ivoire and cotton and rice in Mali- demonstrates
that there is much potential for raising agricultural productivity in LDCs
also. These limited but promising areas of success in other countries can
serve as a model for LDCs. Research has shown that not only the
domestic terms of trade for agriculture, but also the content of capital
input are key determinants of agricultural productivity and
competitiveness. Important in this respect are: rural infrastructure
development; strengthening research and extension services; enhancing
human capital in rural areas through health, education, and access to
productive resources; and preserving the capacity of the natural resource
27
See Global Coalition for Africa: “Promoting agricultural productivity and
competitiveness in sub-Saharan Africa,” Economic Committee Meeting, Nairobi, Kenya,
April 1999.
and environment to sustain productivity achievements. While the main

focus of the current reforms in LDCs has been on macroeconomic and
price policies, the weaknesses in this area require substantial increases in
investment in agriculture by both the public and the private sectors, if they
are to be overcome.
To that end an appropriate and well-sequenced combination is
needed of:
− sound and stable macro-economic policies;
− technology that is productive and robust under farm conditions;
− a strong institutional environment;
− a communications infrastructure and market and institutional
arrangements supporting farmers’ access to seasonal and longer-
term capital and inputs and providing them with strong price
incentives.
Sequential removal of constraints is critical. When the increase in
production associated with a reform or change in circumstances reaches a
plateau another reform/series of reforms is required to unleash further
potential. Sustained growth is only possible if new constraints are
alleviated by further reforms. There also needs to be a dynamic ability for
technology, resource use, institutions, knowledge and markets to be
adapted to deal with successive bottlenecks or constraints affecting
particular commodity systems, to respond to problems of natural resource
exhaustion or degradation, and to diversify to take advantage of new
opportunities.
Policy makers need to give renewed emphasis to understanding
and promoting processes supportive of agricultural growth and increased
emphasis is needed on agricultural research to address the problems facing
farmers in non-green revolution areas. There are strong arguments for
seeking a more nuanced role for the State in promoting efficient and
effective institutional arrangements to support farmers’ access to seasonal
finance and to input and output markets. Finally, there is need for
continued attempts to reform world trade rules that impede the fuller
participation of LDCs in world markets.
Diversification of production and exports

Excessive dependence on a narrow range of products has a
number of important consequences: it exposes farmers unduly to the
vagaries of climate, pests and diseases and to price fluctuations; leads to
fluctuations in farm income and government revenue; contributes to
environmental degradation; may result in failure to take advantage of
complementarities (e.g. between livestock and crops); and has negative
effects on diet and health. In addition, adverse international terms of trade
facing the primary agricultural commodity sector are a further constraint
on growth of the sector.
There is a clear need to diversify the production and export base
(both horizontally and vertically) from low value added to high value
added products. The challenge is to initiate and sustain the momentum for
diversification in order to realize the considerable potential that
undoubtedly exists.
A plethora of measures at different levels will be necessary, the
most important of which are: the maintenance of a stable and predictable
macroeconomic and political environment; establishing a fair and open
regulatory framework; improving the efficiency of financial institutions,
strengthening research and extension for developing and adopting relevant
technology; improving rural services; upgrading the marketing, transport
and communication infrastructure; and development of human resources.
Areas and commodities on which the diversification programmes
focus should be selected on the basis of potential viability as well as
technical sustainability. A multidisciplinary and holistic approach needs to
be adopted to all aspects of diversification and not only to production.
Activities involved relate not only to on-farm production technologies but
also to upstream and downstream constraints to production such as input
supply, technical advisory services, storage, processing and marketing.
While the focus of such programmes in LDCs may require a rapid
increase in productivity, the approach should be holistic to ensure that all
major issues affecting diversification are taken into account in an
integrated manner.
The FAO Special Programme for Food Security (SPFS) has

shown that many LDCs have great potential to diversify production and
exports into tree crops, fisheries, small animal husbandry and agro-
industries. Diversification of production could cover: i) introduction of
aquaculture, artisanal fisheries development, small animals (poultry,
sheep, goats, pigs etc.) and tree crops; intercropping of trees and field
crops; ii) training in use of crop residues for animal feed; iii) introduction
of low-cost methods of animal disease control; iv) support for post-
production activities to promote income generation; and v) development
of agro-industries.
On the trade side, diversification should be encouraged into newer
and where possible higher-value export products. The trading partners of
LDCs can contribute by maintaining preferential market access for such
exports and where relevant by reducing tariff escalation on processed
agricultural products with export potential.
Access to foreign markets

So far, the implementation of the Agreement on Agriculture has
not led to significant improvements in market access for the LDCs, for
reasons noted earlier in this paper, such as the persistence of tariff peaks
and tariff escalation and the high SPS standards set in their main import
markets. However, the major challenge facing agriculture in LDCs is the
erosion of the non-regional trade preferences they have hitherto enjoyed.
Many countries, both developed and developing, have expressed their
intentions of according them more favourable treatment. The Quad
countries, for example, have proposed to implement both tariff-free and
quota-free treatment, consistent with domestic requirements and
international agreements, under their respective preferential schemes, for
essentially all products originating in LDCs.
A key interest of LDCs in the current negotiations on agriculture
is to ensure that the negotiations result in tangible improvements in
market access for their exports, especially those with a high growth
potential. While they welcome the emerging consensus in WTO on duty-
free and quota-free market access for their products, they consider that
these commitments should be binding and be applicable to all their

products.28 They argue that any market access concession they obtain
should be made predictable and not subject to autonomous changes.
Other developing countries, along with the OECD countries,
could improve access of LDCs to their agricultural markets by, inter alia:
i) lowering tariffs and reducing or abolishing export subsidies; ii) reducing
tariff escalation; and iii) encouraging the flow of foreign direct investment
in LDCs to improve technology and knowledge transfer.
Multilateral trade rules on agriculture

The WTO trading regime offers opportunities to LDCs but also
poses challenges. If they are to develop fully their agricultural potential,
they will need, as will the WTO members in general, to address the
following issues:
Rule making in favour of LDCs: WTO rules should be supportive of the
development of LDCs. In particular, they should be made compatible with
their institutional, human capital and infrastructure requirements in order
to permit them to benefit fully from the global trading system. The
specific concerns of LDCs need to be reflected in the structure, framework
and long-term objective of the Agreement on Agriculture;
Capacity building for trade: LDCs have neither the institutional capacity
nor the human resources to face all the challenges or take full advantage
of the opportunities flowing from the multilateral trading system, and to
participate fully as equal partners in new WTO negotiations on
agriculture. Technical and financial assistance to build capacity is
therefore essential, especially in the following areas:
− Developing and strengthening institutional capacity to meet
international standards, e.g. in food safety and quality;
− Strengthening the capacity in multilateral negotiations, in
particular assisting them to deal with problems confronted in
28
OAU/AEC (2000), “Current developments on issues of interest to African countries in
the context of post-Seattle WTO negotiations” (OAU/AEC/TD/MIN/2 (III)), Annex III.
honouring their WTO commitments, including follow-up of

decisions in their favour, and to take advantage of trading
opportunities;
− Strengthening their capacity to analyse trade issues in the context
of the continuation of the reform process;
− Assisting non-members of WTO to achieve accession on terms
consistent with their development and food security needs;
− Implementing the Integrated Framework for Trade-Related
Technical Assistance to LDCs as recognized in the WTO Plan of
Action for LDCs adopted in 1996 at the first WTO Ministerial
Conference.
External assistance
LDCs face a major domestic resource gap in generating the
investments needed to achieve their developmental objectives in
agriculture, including the target of halving the number of under-nourished
people by 2015. External assistance is needed to accelerate agricultural
productivity, which is dependent on the availability of sustainable
alternative technologies and farming practices that will not further
degrade the natural resource base.
Experience has shown that foreign aid has played a major role in
almost all success stories of agricultural development. Its role was critical
in the Green Revolution, and it has always been a key element in
institutional development. If the donors’ current goal of poverty reduction
is to be met, external assistance to agriculture in LDCs will need to be
restored to, and indeed exceed, its earlier levels.
In this regard, and in view of the importance of agriculture for
poverty reduction and economic growth in LDCs, current initiatives to
provide financial assistance to LDCs through targeted debt relief and other
financial assistance could pay special attention to efforts to exploit their
sustainable agricultural potential.
STATISTICAL ANNEX
Table 1. Food and agricultural production, consumption, and trade in
LDCs, 1970-1997
Table 2. LDCs: land resource potential
Table 3. LDCs: agricultural value added per worker, 1979-81 and 1995-
97
Table 4. Yields of major crops in LDCs and other developing countries
Table 5. Relative contributions of area and yield to growth in crop
production in LDCs, 1981-89 and 1990-99
Table 6. Share of LDCs in world livestock numbers in 1997-99 and in
world output therefrom
Table 7. Internal rate of return per unit of expenditure on agricultural
extension and research in developing countries, by region, and
in OECD countries
Table 8. LDCs: Per caput dietary energy supply (DES), 1979-81, 1989-
91 and 1996-98
Table 9. Prevalence of undernourishment in the LDCs, 1996-98
Table 10. Rural and urban poverty in selected LDCs
Table 11. Non-farm income share for selected least-developed countries
Table 12. Food imports in LDCs, 1996-98
Table 13. External assistance to agriculture for developing countries and
LDCs, 1981-99
Table 14. External Assistance to Agriculture (EAA): Total
Commitments by Main Donor Groups from 1995 to 1999
Table 15. Intra-regional and interregional agricultural trade of
developing countries, 1980-97
Table 16. Summary of tariff commitments made by LDCs under the
Agreement on Agriculture
74
Table 1. Food and agricultural production, consumption, and trade in LDCs, 1970-1997 (annual
average percentage growth in value)
THE ROLE OF AGRICULTURE IN THE DEVELOPMENT OF LDCS

Commodity Production Consumption Imports Exports
group/
commodity 1970-79 1980-89 1990-97 1970-79 1980-89 1990-97 1970-79 1980-89 1990-97 1970-79 1980-89 1990-97
Basic foodstuffs 1.78 1.91 2.40 2.40 2.33 2.26 4.43 3.12 2.51 -5.95 -7.92 9.23
Cereals 0.65 2.05 2.32 1.96 2.79 2.21 4.07 0.79 2.66 -5.70 -10.66 -1.99
Wheat 2.53 0.67 5.53 3.59 2.73 4.49 3.25 3.40 4.21 -15.57 20.51 35.72
Rice, milled 0.51 2.24 1.75 1.93 3.09 1.69 4.22 -0.61 1.20 -6.31 -13.98 -10.24
Coarse grains 0.80 1.54 3.98 1.60 1.71 3.45 6.13 -2.45 3.26 0.39 0.83 -1.26
Maize 3.26 3.98 1.66 3.55 3.02 2.64 9.39 -3.30 -0.14 -20.86 16.84 1.29
Millet & sorghum 0.45 1.07 4.08 1.21 2.51 2.25 7.12 -10.37 4.88 15.32 -1.65 -3.87
Other coarse grains -1.42 -1.19 7.65 -0.07 -1.53 6.96 0.64 2.41 8.11 -2.00 14.54 -10.59
Root crops 2.71 2.18 1.68 2.71 2.27 1.64 -2.05 7.73 -10.32 -9.58 -5.36 -15.40
Cassava 1.88 2.97 -0.41 1.90 2.98 -0.29 -28.92 27.08 7.57 -9.97 3.26 -28.21
Fats, oils & oilmeals 1.89 1.35 3.07 3.23 3.08 3.28 5.38 8.74 7.68 -6.41 -5.23 5.06
Fats and oils 1.95 0.44 3.73 3.63 3.09 3.97 5.38 8.72 7.79 -9.39 -4.40 6.60
Oilmeals 1.81 2.43 2.33 2.57 3.04 2.15 5.25 10.41 0.26 -3.25 -6.19 2.91
Pulses 2.21 0.59 2.77 3.01 0.59 1.50 17.38 10.69 -1.89 -2.50 -5.12 14.69
Meat 1.73 1.89 2.56 1.96 2.00 2.47 6.76 5.17 -0.11 -12.38 -13.09 17.62
Beef and veal 1.49 1.69 1.68 1.81 1.88 1.54 1.30 6.17 -6.09 -14.99 -19.57 -3.86
Mutton and lamb 2.25 1.00 3.42 2.25 1.05 3.10 3.34 17.77 -30.27 12.66 -49.05 256.79
Pigmeat 1.26 4.85 4.12 1.31 4.94 4.02 -1.88 6.78 1.92 -27.87 - -
Poultry meat 2.78 4.33 4.11 4.11 4.27 4.44 44.41 3.69 7.92 -19.68 -27.05 36.92
Dairy products 2.88 1.90 2.79 2.91 2.08 2.61 3.68 5.65 -1.62 -6.38 -1.68 24.30
Milk & milk 2.86 1.91 2.74 2.89 2.12 2.53 4.19 6.62 -3.01 -5.98 -17.59 5.52
products
Butter 2.75 1.69 1.84 2.20 0.50 3.23 -1.32 -5.17 14.19 -5.76 0.91 35.16
Eggs 3.57 1.68 4.18 3.79 1.67 4.43 42.97 1.28 15.97 -20.57 -25.61 50.36
Other food
commodities 0.51 2.22 1.15 0.96 2.41 1.51 2.57 2.08 7.19 -0.84 0.85 -0.43
Sugar -0.84 0.95 1.75 0.14 1.81 3.72 3.93 1.98 8.02 -2.62 -2.61 0.85
Vegetables 2.16 2.74 1.67 2.17 2.76 1.79 3.82 7.12 4.73 8.40 18.32 -14.89
Fruits 0.27 2.16 0.86 0.19 2.27 0.94 5.24 -1.07 7.01 4.21 -2.47 -1.16
Tropical Fruits -0.28 2.52 0.89 -0.20 2.49 0.92 4.44 -6.41 0.78 -7.07 4.11 -15.24
Citrus fruits 0.16 2.63 2.06 0.50 2.44 2.92 15.24 -6.95 33.96 -1.36 -0.52 -13.39
Tropical -2.28 1.26 0.43 3.94 2.14 3.35 -2.45 0.75 7.77 -1.82 1.51 -0.09
beverages
Tea 1.88 1.06 3.69 3.04 0.87 5.40 -1.63 -1.87 5.66 1.48 -1.51 3.49
Coffee -2.82 1.21 0.01 4.23 2.01 2.80 -2.97 9.27 17.31 -2.13 2.10 -0.64
Cocoa -0.95 3.38 -1.86 -0.66 26.92 0.86 -6.69 -5.50 13.28 -3.50 -2.88 0.15
Agricultural
raw materials -0.63 1.48 4.48 1.93 1.79 4.48 2.32 4.41 5.98 -3.12 2.04 3.00
Cotton -3.78 3.92 7.75 0.17 5.88 10.33 0.24 6.14 3.11 -4.12 4.71 3.35
Jute -0.61 -1.84 3.18 2.42 -0.73 3.76 4.60 -7.98 2.90 -4.67 -4.09 1.68
Sisal -9.81 -7.80 -3.67 1.34 -0.81 -4.55 -43.89 - -19.43 -10.88 -14.77 -1.79
Rubber -2.12 3.15 2.94 6.13 0.30 -10.86 3.76 0.82 3.91 -3.10 5.76 15.79
75
Table 2. LDCs: land resource potential
Actual arable Potential Land in use

Country * land per caput arable land per (1994) as % of
(1994) caput potential arable
(hectares) 1 (hectares) 2 land 3
With relatively large land

balance:
Democratic Republic of the Congo 0.07 2.29 3
Mozambique 0.09 2.59 4
Central African Republic 0.63 11.15 6
Angola 0.33 5.38 6
Liberia 0.16 2.19 7
Guinea-Bissau 0.10 1.05 10
Mali 0.18 1.72 10
Madagascar 0.18 1.69 10
Zambia 0.67 4.86 14
Sudan 0.32 2.32 14
Chad 0.53 3.56 15
United Republic of Tanzania 0.23 1.44 16
Guinea 0.26 1.30 20
Gambia 0.12 0.55 22
Lao People’s Democratic 0.20 0.88 22
Republic
Burkina Faso 0.35 1.43 24
Benin 0.36 1.40 26
Sierra Leone 0.29 0.83 35
Myanmar 0.22 0.63 35
Ethiopia 0.21 0.52 40
Cambodia 0.46 0.93 49
Malawi 0.22 0.42 51
Nepal 0.11 0.17 65
Mauritania 0.24 0.36 66
With relatively limited land

balance:
Bangladesh 0.08 0.12 71
Togo 0.61 0.74 83
Uganda 0.36 0.42 84
Somalia 0.13 0.15 90
Actual arable Potential Land in use

Country * land per caput arable land per (1994) as % of
(1994) caput potential arable
(hectares) 1 (hectares) 2 land 3
With almost no land balance:

Burundi 0.20 0.15 130
Haiti 0.13 0.09 151
Yemen 0.10 0.06 156
Lesotho 0.17 0.11 160
Eritrea 0.15 0.08 201
Afghanistan 0.47 0.23 207
Rwanda 0.30 0.12 259
*Ranked in order of land use as a percentage of potential arable land.

1
Land presently cultivated per caput of total population.
2
Areas that are suitable for cultivation in terms of soil suitability and availability of water
(rainfall or irrigation). Includes lands currently under forest or wetlands which are
protected and not available for agriculture.
3
High values indicate a low (or zero) reserve of available land.
Source: Adapted from A. Bot, F. Nachtergaele and A. Young, "Land resources potential
and limitations at regional and country levels", World Soil Resources Report, Number 90,
FAO, Rome, 2000.
Table 3. LDCs: agricultural value added per worker, 1979-81 and

1995-97
Agricultural value added per Percentage

worker (1995 US$) change
Country 1979-81 1995-97
Angola 2411 117 -51
Bangladesh 181 221 22
Benin 302 504 67
Bhutan 106 148 40
Burkina Faso 134 159 19
Burundi 177 139 -21
Cambodia 3611 407 13
Central African Republic 396 439 11
Chad 155 212 37
Comoros 415 386 -7
Democratic Republic of the Congo 270 285 6
Gambia 325 216 -34
Guinea 239 262 10
Guinea-Bissau 221 326 48
Haiti 578 407 -30
Lao People’s Democratic Republic 4601 526 14
Lesotho 498 319 -36
Madagascar 198 180 -9
Malawi 100 122 22
Mali 225 241 7
Mauritania 301 439 46
Mozambique 741 76 3
Nepal 162 188 16
Niger 222 190 -14
Rwanda 307 201 -35
Sierra Leone 368 404 10
Togo 345 510 48
Uganda 54 326 504
United Republic of Tanzania 152 1592 5
Yemen 295 3052 3
Zambia 331 226 -32
Memo items:
Sub-Saharan Africa 418 371
Low and middle income countries * ... 567 -11
High income countries* ... 18 918 ...
1 2
*As defined by the World Bank. 1985-87. 1990-92.
Source: World Bank (1999), World Development Indicators 1999.
Table 4. Yields of major crops in LDC and other developing countries

Average annual yield in 1995-99 Average yield in
Crop (tonnes per ha) LDCs as percentage
All developing LDCs of yield in all
countries developing countries
Wheat 2.64 1.48 66.0
Rice 3.70 2.54 68.0
Maize 2.86 1.23 43.0
Coarse grains 1.94 0.81 42.0
Fibre crops 0.64 0.52 81.0

Oil crops 0.48 0.22 47.0
Pulses 0.67 0.51 77.0
Roots and tubers 11.80 6.60 56.0
Vegetables 14.60 7.20 49.0
Source: Computations based on data from FAOSTAT (2000).
Table 5. Relative contributions of area and yield to growth in crop

production in LDCs, 1981-89 and 1990-99
1981-89 1990-99
Crop Average of which due to: Average of which due to:
annual Area Yield annual Area Yield
growth growth
(percent) (percent) (percent) (percent)
Total cereals 2.1 77.0 23.0 2.0 72.0 28.0
of which:
Wheat 0.8 36.0 64.0 4.0 70.0 30.0
Rice 2.3 17.0 83.0 1.7 43.0 58.0
Maize 4.1 88.0 12.0 2.4 43.0 57.0
Coarse grains 2.7 118.0 -18.0 2.5 75.0 25.0
Fibre crops 1.5 35.0 65.0 3.0 80.0 20.0
(cotton)
Oil crops 1.0 85.0 15.0 3.6 105.0 -5.0
Pulses 0.3 4.4 84.0 26.0
Roots and tubers 2.7 77.0 23.0 1.7 81.0 19.0
Vegetables & 2.8 69.0 31.0 1.8 62.0 38.0
melons
Fruits 2.3 106.0 -6.0 1.0 99.0 1.0
Source: Computations based on data from FAOSTAT (2000).

Table 6. Share of LDCs in world livestock numbers in 1997-99 and in

world output therefrom
Share in world livestock Productivity (kilograms of
(percent) product per animal)
LDCs All developing LDCs All developing
countries countries
By product:
Beef 4 48 113 167
Sheep and goat meat 11 70 11 13
Milk 3 39 115 414
Poultry meat 2 50 0.89 1.30
Pigmeat 1 57 46 72
By type of animal:
Cattle and buffalo 14 77
Sheep and goat 18 76
Chickens 5 70
Pigs 2 67
Table 7. Internal rate of return per unit of expenditure on agricultural

extension and research in developing countries, by region, and in
OECD countries
Extension Applied research
Region Median return (percent) Median return (percent)
Developing countries in:
Africa 27 37
Asia 47 67
Latin America 46 47
OECD countries 50 40
Source: FAO (Rome, 2000), The State of Food and Agriculture, 2000, Table 16.
Table 8. LDCs: Per caput dietary energy supply (DES), 1979-81, 1989-91
and 1996-98 (kcal/day)
Country/region 1979-81 1989-91 1996-98
World 2 540 2 700 2 780
Developing countries 2 300 2 510 2 650
LDCs * of which in 2 040 2 080 2 070

Africa 2 060 2 010 2 000
Asia 2 020 2 180 2 180
Pacific 2 380 2 340 2 410
Caribbean 2 040 1 770 1 840
Afghanistan 2 210 1 920 1 620

Angola 2 120 1 790 1 910
Bangladesh 1 910 2 060 2 060
Benin 2 050 2 310 2 540
Burkina Faso 1 690 2 090 2 160
Burundi 2 030 1 910 1 640
Cambodia 1 720 1 940 2 060
Cape Verde 2 500 2 960 3050
Central African Republic 2 320 1 920 2 000
Chad 1 650 1 740 2 070
Comoros 1 790 1 870 1 850
Democratic Republic of the Congo 2 070 2 100 1 750
Djibouti 1 810 1 810 2 060
Eritrea ... ... 1 650
Ethiopia ... ... 1 850
Gambia 1 800 2 440 2 520
Guinea 2 270 2 050 2 310
Guinea-Bissau 2 010 2 400 2 420
Haiti 2 040 1 770 1 840
Kiribati 2 600 2 580 2 920
Lao People’s Democratic Republic 2 080 2 090 2 120
Lesotho 2 250 2 220 2 230
Liberia 2 520 2 120 2 000
Madagascar 2 420 2 160 2 010
Malawi 2 270 1 960 2 170
Maldives 2 160 2 370 2 470
Mali 1 760 2 270 2 150
Mauritania 2 120 2 540 2 630
Table 8 (cont.). LDCs: Per caput dietary energy supply (DES), 1979-81,
1989-91 and 1996-98 (kcal/day)
Country/region 1979-81 1989-91 1996-98

Mozambique 1 920 1 780 1 860
Myanmar 2 320 2 630 2 830
Nepal 1 900 2 360 2 190
Niger 2 140 2 050 1 940
Rwanda 2 290 2 000 2 030
Sao Tome and Principe 2 080 2 150 2 170
Sierra Leone 2 110 2 020 2 050
Solomon Islands 2 230 2 110 2 170
Somalia 1 820 1 760 1 550
Sudan 2 270 2 190 2 430
Togo 2 190 2 290 2 460
Uganda 2 120 2 300 2 140
United Republic of Tanzania 2 280 2 220 2 000
Vanuatu 2 560 2 730 2 730
Yemen 1 950 2 050 2 050
Zambia 2 180 2 060 1 960
* Excluding Bhutan, Equatorial Guinea, Samoa and Tuvalu, for which data were not
available.
Source: FAO.
Table 9. Prevalence of undernourishment in the LDCs, 1969-71 and

1996-98
Total population* Population undernourished
1969-71 1996-98 1969-71 1996-98
Number % of total Number % of total
(millions) (millions) (millions) population (millions) population
All LDCs* 304.9 594.3 115.7 38 235.2 40
Africa 165.6 344.9 67.4 41 149.0 43
Angola 5.6 11.7 1.8 33 5.0 43
Benin 2.7 5.6 1.1 41 0.8 14
Burkina Faso 5.4 11.0 3.2 59 3.5 32
Burundi 3.5 6.4 1.2 34 4.3 68
Central African Rep. 1.8 3.4 0.4 22 1.4 41
Chad 3.7 7.1 1.4 38 2.7 38
Dem. Rep. of the Congo 20.3 48.0 6.7 33 29.3 61
Eritrea ... 3.4 ... ... 2.2 65
Ethiopia ... 58.2 ... ... 28.4 49
Ethiopia PDR 30.6 17.2 56 ... ...
Gambia 0.5 1.2 0.1 32 0.2 16
Guinea 3.9 7.3 1.3 34 2.1 29
Lesotho 1.1 2.0 0.5 43 0.6 29
Liberia 1.4 2.4 0.4 30 1.1 46
Madagascar 6.9 14.6 1.1 16 5.8 40
Malawi 4.5 10.1 1.0 23 3.2 32
Mali 5.5 10.4 2.3 41 3.4 32
Mauritania 1.2 2.5 0.6 48 0.3 13
Mozambique 9.4 18.4 5.0 53 10.7 58
Niger 4.2 9.8 1.7 41 4.5 46
Rwanda 3.7 6.0 1.0 28 2.3 39
Sierra Leone 2.7 4.4 0.9 34 1.9 43
Somalia 3.6 8.8 2.0 56 6.6 75
Sudan 13.9 27.7 4.3 31 5.1 18
Togo 2.0 4.3 0.5 24 0.8 18
United Rep. of Tanzania 13.7 31.4 8.1 59 12.7 41
Uganda 9.8 20.0 2.2 23 6.0 30
Zambia 4.2 8.6 1.2 30 3.9 45
Asia 134.7 241.6 45.8 34 81.3 34
Afghanistan 13.6 20.9 4.7 34 14.6 70
Bangladesh 66.7 122.7 20.2 30 46.8 38
Cambodia 6.9 10.5 2.1 30 3.4 33
Table 9 (cont.). Prevalence of undernourishment in the LDCs, 1969-71

and 1996-98
Total population* Population undernourished
1969-71 1996-98 1969-71 1996-98
Number % of total Number % of total
(millions) (millions) (millions) population (millions) population
Lao People’s Dem. Rep. 2.7 5.0 0.9 32 1.5 29
Myanmar 27.1 43.9 9.4 35 3.1 7
Nepal 11.3 22.3 5.0 44 6.2 28
Yemen 6.3 16.3 3.6 57 5.7 35
Caribbean 4.5 7.8 2.5 54 4.8 62
Haiti 4.5 7.8 2.5 54 4.8 62
* Excluding Bhutan, Cape Verde, Comoros, Djibouti, Equatorial Guinea, Guinea-Bissau,

Kiribati, Maldives, Samoa, Sao Tome and Principe, Solomon Islands, Tuvalu and Vanuatu, for
which data were not available.
Note: Totals may not add up due to rounding.
Source: 1969-71: Unpublished FAO data., 1996-98: FAO, Rome (2000), The State of Food
Insecurity in the World, Table 1.
Table 10. Rural and urban poverty in selected LDCs (percentage of total
rural or urban population)
Country/Region Year or period Poverty
Rural Urban
West and Central Africa
Burkina Faso 1998 50.7 15.8
Chad 1985-1986 67.0 63.0
Guinea-Bissau 1991 60.9 24.1
Mauritania 1996 58.9 19.0
Niger 1989-1993 66.0 52.0
Sierra Leone 1989 76.0 53.0
East and Southern Africa
Ethiopia 1994-1997 45.9 38.7
Lesotho 1993 53.9 27.8
Madagascar 1993-1994 77.0 47.0
Uganda 1997 48.2 16.3
Zambia 1996 74.9 34.0
East and South Asia
Bangladesh 1995-1996 39.8 14.3
Cambodia 1997 43.1 24.8
Lao People’s Democratic Republic 1993 53.0 24.0
Nepal 1995-1996 44.0 23.0
Source: IFAD Rural Poverty Report 2000, Rome (2000).

Table 11. Non-farm income share for selected LDCs

Country Year Strata Percentage share
Bangladesh 1987 Irrigated 29
Favourable rainfed 41
Drought-prone 36
Flood-prone 45
Saline-affected 28
1963 18
1973 22
1976 18
1982 8
1979-81 Dhaka 59*
Chittagong 65*
1983/84 34*
1984/85 35*
1990/91 39*
Nepal 1987 Irrigated 1 19
Irrigated 2 7
Rainfed 1 17
Rainfed 2 1
Burkina Faso 1978/79 22
1981-85 Sahelian (Unfavourable) 34
Guinean (Favourable) 41
1981-85 Unfavourable zone
Low-income tercile 14
High-income tercile 44
Favourable zone
Ethiopia 1989/90 31
1989/90 1st income tercile 34
2nd income tercile 30
3rd income tercile 30
Gambia 1985/86 23
1985/86 1st income quartile 20
2nd income quartile 21
3rd income quartile 20
4th income quartile 26
Lesotho 1976 67
1976 1st income quartile 30
Table 11 (cont.). Non-farm income share for selected LDCs

Country Year Strata Percentage share
Lesotho 1976 3rd income quartile 94
Malawi 1990/91 34
Mali 1988/89 59
Mozambique 1991 Cash crop zone 17
Non-cash crop zone 12
1991 Cash crop zone
1st income quartile 11
Non-cash crop zone
1st income quartile 6
Niger 1989/90 Unfavourable 44
Favourable 34
1989/90 Sudano-Sahelian (Unfavourable)
Middle-income tercile 41
Sudano-Guinean (Favourable)
Middle-income tercile 32
Rwanda 1991 24
1991 1st income quartile 13
Sudan 1988 38
United Rep. of
Tanzania 1980 25
*
Percentage share of employment.
Source: FAO, Rome (1998), The State of Food and Agriculture 1998, Part III.
Table 12. Food imports in LDCs, 1996-98 (annual average)

Country Total food Cereal Share of food Share of
imports imports imports in cereals in
(million (million US$) total food imports
US$) merchandise (percent)
imports
(percent)
All LDCs 5 179 2 710 15 52

Afghanistan 124 35 28 28
Angola 275 104 13 38
Bangladesh 598 363 9 61
Benin 98 43 15 43
Bhutan 14 9 10 62
Burkina Faso 97 63 13 66
Burundi 22 13 17 58
Cambodia 59 13 10 22
Cape Verde 49 11 21 23
Central African Republic 24 9 10 38
Chad 37 22 16 59
Comoros 22 11 38 48
Dem. Rep. of the Congo 196 103 45 52
Djibouti 54 24 17 43
Equatorial Guinea 8 2 8 24
Eritrea 69 57 14 82
Ethiopia 113 93 10 82
Gambia 63 31 26 49
Guinea 155 77 16 50
Guinea-Bissau 29 22 46 77
Haiti 224 134 32 60
Kiribati 11 4 27 38
Lao People’s Dem. Rep. 37 24 6 66
Lesotho 143 70 13 49
Liberia 67 46 17 69
Madagascar 52 35 11 67
Malawi 43 30 7 69
Maldives 45 13 13 28
Mali 91 29 12 32
Mauritania 171 108 70 63
Mozambique 120 68 15 57
Myanmar 34 12 1 37
Nepal 84 20 6 23
Table 12 (cont.). Food imports in LDCs, 1996-98 (annual average)

Country Total food Cereal Share of food Share of
imports imports imports in cereals in
(million (million US$) total food imports
US$) merchandise (percent)
imports
(percent)
Niger 76 28 18 37
Rwanda 66 48 25 72
Samoa 27 7 27 25
Sao Tome and Principe 5 2 22 50
Sierra Leone 130 94 76 73
Solomon Islands 17 11 10 64
Somalia 88 36 50 41
Sudan 239 146 14 61
Togo 48 26 11 54
Tuvalu 1 0 11 34
Uganda 48 34 6 70
United Rep of Tanzania 137 71 10 52
Vanuatu 15 7 15 48
Yemen 969 442 51 46
Zambia 85 61 10 72
Source: FAO
.
Table 13. External assistance to agriculture (EAA) for developing countries and LDCs, 1981-99
Period Total ODA commitments Of which external assistance to agriculture (EAA)
All LDCs Share of All LDCs EAA as % of Share of LDCs Share of
developing LDCs in total developing ODA in in total EAA of EAA in
countries ODA in countries developing developing total ODA
developing countries countries in LDCs
countries
(million (million (million (million
US$) US$) (percent) US$) US$) (percent) (percent) (percent)
(1) (2) (3)=(2/1) (4) (5) (6)=(4/1) (7)=(5/4) (8)=(5/2)
1981 39 894 10 316 25.9 9 945 2 173 24.9 21.9 21.1
1982 37 277 10 529 28.2 10 775 2 317 28.9 21.5 22.0
1983 35 907 10 317 28.7 10 031 2 214 27.9 22.1 21.5
1984 39 012 10 631 27.3 9 411 1 808 24.1 19.2 17.0
1985 38 128 10 892 28.6 9 988 2 228 26.2 22.3 20.5
1986 44 951 13 121 29.2 12 532 2 329 27.9 18.6 17.8
1987 52 638 15 876 30.2 12 229 2 845 23.2 23.3 17.9
1988 61 224 15 949 26.1 13 343 3 354 21.8 25.1 21.0
1989 56 213 15 548 27.7 12 404 2 826 22.0 22.8 18.2
1990 80 923 16 042 19.8 13 591 3 090 16.8 22.7 19.3
Average
1981-90 48 617 12 922 27.2 11 425 2 518 24.4 21.9 19.6
89
90
Table 13 (cont.). External assistance to agriculture (EAA) for developing countries and LDCs, 1981-99
Period Total ODA commitments Of which external assistance to agriculture (EAA)

All LDCs Share of All LDCs EAA as % of Share of Share of
developing LDCs in total developing ODA in LDCs in total EAA in
countries ODA in countries developing EAA of total ODA
developing countries developing in LDCs
countries countries
(million (million (million (million
US$) US$) (percent) US$) US$) (percent) (percent) (percent)
(1) (2) (3)=(2/1) (4) (5) (6)=(4/1) (7)=(5/4) (8)=(5/2)
1991 77 758 17 570 22.6 12 196 1 881 15.7 15.4 10.7
1992 71 811 17 034 23.7 12 547 2 505 17.4 20.0 14.7
1993 72 180 15 478 21.4 9 535 1 708 13.2 17.9 11.0
1994 74 248 16 430 22.1 11 350 1 520 15.3 13.3 9.3
1995 75 385 15 693 20.8 10 949 1 798 14.5 16.4 11.5
1996 73 709 14 620 19.8 10 951 2 185 14.9 20.0 15.0
1997 63 442 14 044 22.1 11 641 2 205 18.4 18.9 15.7
1998 61 533 14 229 23.1 11 953 2 270 19.4 19.0 16.0
1999 * 67 798 14 976 22.1 10 297 2 145 15.1 20.8 14.3
Average
1991-99 70 874 15 564 22.0 11 269 2 014 16.0 18.0 13.1
*
1999 data is provisional
Source: FAO data on external assistance to agriculture, based on information available from OECD, World Bank, regional
development banks, IFAD, OPEC and CGIAR.
Table 14. External assistance to agriculture (EAA): total commitments by main donor groups from
1995 to 1999 (millions of US$)
LDCs - total All developing countries - total

1995 1996 1997 1998 1999* 1995 1996 1997 1998 1999*
Total EAA commitments 1 798 2 185 2 205 2 270 2 145 10 949 10 951 11 641 11 953 10 297
of which grants 926 1 496 1 074 1 153 1 092 3 306 3 508 3 231 3 565 3 259
Total Bilateral 1 001 1 511 1 088 1 140 1175 4 727 5 136 4 137 4 446 3 992
Total Multilateral 797 674 1 118 1 130 970 6 221 5 815 7 504 7 507 6 305
of which:
- CGIAR Group/ na na na na na 663 657 730 718 708
FAO/UNDP
- IFAD 120 133 106 150 175 255 391 350 405 393
- Regional Development 205 161 400 300 357 990 1 889 2 247 1 548 2 039
Banks
- World Bank Group 370 300 493 535 279 4 158 2 622 3 752 4 330 2 872
na: data not available

*
1999 data is provisional.
Source: FAO data on external assistance to agriculture, based on information available from OECD, World Bank, Regional Development
Banks, IFAD, OPEC and CGIAR.
91
92
Table 15. Intra-regional and interregional agricultural trade of developing countries, 1980-97 (value in
million US dollars)

Exports All developing Latin America Africa West Asia Other Asia
from: countries
Year
Exports Value Percent Value Percent Value Percent Value Percent Value Percent
to: of total of total of total of total of total
exports exports exports exports exports
World 1980 78 023 100 15 503 100 15 082 100 14 044 100 30 177 100
1990 102 457 100 17 070 100 15 621 100 19 031 100 47 382 100
1996 166 940 100 31 688 100 17 560 100 24 462 100 88 705 100
All 1980 27 348 35 3 964 26 3 274 22 5 248 37 14 197 47

developing 1990 41 668 41 5 740 34 4 946 32 7 407 39 23 019 49
countries 1997 83 947 50 13 626 43 6 173 35 13 857 57 48 990 55
of which in:
Latin 1980 6 990 9 3 335 22 970 6 1 204 9 1 269 4
America 1990 11 128 11 4 859 28 1 552 10 2 202 12 2 243 5
1997 22 894 14 12 085 38 1 857 11 2 556 10 6 253 7
Table 15 (cont.). Intra-regional and interregional agricultural trade of developing countries, 1980-97
(value in million US dollars)
Exports All developing Latin America Africa West Asia Other Asia
from: countries
Year
Exports to: Value Percent Value Percent Value Percent Value Percent Value Percent
of total of total of total of total of total
exports exports exports exports exports
Africa 1980 2 144 3 108 1 881 6 444 3 542 2

1990 3 645 4 136 1 1 517 10 840 4 1 104 2
1997 5 371 3 300 1 1 901 11 1 173 5 1 959 2
West Asia 1980 1 520 2 14 0 138 1 1 144 8 197 1

1990 2 611 3 40 0 332 2 1 936 10 238 1
1997 2 912 2 88 0 446 3 4 300 18 1 013 1
Other Asia 1980 16 274 21 486 3 1 165 8 2 372 17 12 066 40

1990 23 851 23 668 4 1 409 9 2 350 12 19 272 41
1997 48 527 29 1 109 7 1 935 11 5 805 24 39 498 45
Note: The table relates to trade in all food items and agricultural raw materials (i.e. SITC 0+1+2 (less 27 and 28) +4).
Source: UNCTAD Handbook of International Trade and Development Statistics 1996-1997 (New York and Geneva: United Nations, 1999).
93
Table 16. Summary of tariff commitments made by LDCs under the

Agreement on Agriculture
Average rate of : Average
Country Bound tariffs 1 ODCs 1 applied
(percent) tariff rate 2
Africa:
Angola 55 3 0.1 ...
Benin 603 19 13
Burkina Faso 100 50 33
Burundi 100 30 ...
Central African Republic 30 16 ...
Chad 80 ... ...
Democratic Republic of the 553 0.1 ...
Congo
Djibouti 403 100 ...
Gambia 1103 10 ...
Guinea 40 233 16.65
Guinea-Bissau 40 253 ...
Lesotho 200 ... ...
Madagascar 30 250 ...
Malawi 125 0 ...
Mali 60 50 27.65
Mauritania 253 15 ...
Mozambique 1003 300 ...
Niger 503 50 ...
Rwanda 80 ... ...
Sierra Leone 403 203 ...
Togo 80 7 17
Uganda 803 ... 21
United Republic of Tanzania 120 120 16.26
Zambia 1253 ... 24
Table 16 (cont.). Summary of tariff commitments made by LDCs under

the Agreement on Agriculture
Average rate of : Average

Country Bound tariffs 1 ODCs 1 applied
(percent) tariff rate 2
Asia
Bangladesh 2003 30 7.5-60
(range)
Maldives 303 1 ...
Myanmar 844 ... ...
Solomon Islands 803 35.6
Latin America and the

Caribbean
Haiti 214 164 ...
1
Tariff bindings and other duties and charges (ODCs) are uniform for all items, except
where otherwise indicated. (Source: Notifications to WTO).
2
Taken from the latest Trade Policy Reviews of the respective countries and from Kent,
Wilcock and Gwynn (1997), Likely Impact of the GATT Agricultural Agreement on
African Agricultural Trade and Development, ARAP II Research Report No. 1024,
USAID.
3
Rate applied to most agricultural products.
4
Simple average of all agricultural tariff lines.
5
As a member of the West African Economic and Monetary Union (WAEMU) is moving
towards the Common External Tariff of 10 % or 20 % on agricultural products.
6
Average for all goods (including manufactured products).
ANNEX I
FAO TECHNICAL ASSISTANCE

TO AGRICULTURE IN THE
LEAST-DEVELOPED COUNTRIES
ANNEX I.
FAO TECHNICAL ASSISTANCE TO AGRICULTURE
IN THE LEAST-DEVELOPED COUNTRIES
INTRODUCTION
Modernization of agriculture in the least-developed countries

(LDCs) faces a series of persistent constraints. They include: low levels of
productivity and technical skills; high natural and economic vulnerability;
weak agricultural policy and support institutions; inadequate physical
infrastructure; and shortages of production inputs. In several LDCs,
agriculture is further affected by emergencies due to civil conflicts and
natural disasters. Nevertheless, agriculture in most LDCs has large
unexploited potential. As noted in the present paper, many have
considerable reserves of land and water, and all have ample scope for
increasing output and productivity in their crop, livestock, fishery and
forestry sectors.
Technical assistance from FAO helps them both to overcome
emergencies and to meet short-term, pressing needs, and to build a
modern food and agricultural system by exploiting more fully their human
and natural resource potentials. The assistance is guided by three global
goals, which have been shaped by the Constitution of FAO and by
international conferences, particularly the 1996 World Food Summit and
the 1992 United Nations Conference on Environment and Development:
1. Access of all people at all times to sufficient, nutritionally

adequate and safe food, with the aim of ensuring that the
number of undernourished people is reduced by half by no
later than 2015;
2. The continued contribution of sustainable agriculture and
rural development, including fisheries and forestry, to
economic and social progress and the well-being of all;
3. The conservation, improvement and sustainable utilization of

natural resources, including land, water, forest, fisheries and
genetic resources for food and agriculture.29
In providing its assistance, FAO follows a policy of making
maximum use of technical expertise available in developing countries,
through its South-South Cooperation (SSC) scheme and its programmes
of Technical Cooperation among Developing Countries and Countries in
Transition (TCDC/TCCT). The assistance includes normative as well as
operational field activities with a direct impact on supply-side capacities.30
This annex reviews the operational field activities in LDCs and provides
an illustrative list of ongoing FAO field projects in these countries.
I. THE FAO FIELD PROGRAMME IN LDCs
FAO provides technical cooperation and emergency assistance,

funded from its regular programme and extra-budgetary resources, to least
developed and other developing countries at their request, and in
partnership with bilateral donors, multilateral institutions, other
organizations of the United Nations system, as well as with the private
sector and civil society.
In the period 1992-2000, the value of FAO field projects in LDCs
totalled some US$849 million, or 31 percent of its total Field Programme.
These projects met a wide range of needs, from emergency relief and
agricultural rehabilitation to practical assistance to government
programmes for food security, sustainable agriculture and rural
development.
29
See The Strategic Framework for FAO 2000-2015, Rome, FAO, 1999.
30
FAO’s normative assistance includes policy analysis and policy advice on a variety of
agricultural policy issues. For example, FAO assisted many of the LDCs in preparing their
national agricultural development strategies towards 2010.
In the year 2000 alone, more than 700 field projects, with a total
budget value of US$423 million, were ongoing in 46 of the then 48 LDCs.
(For an illustrative list of the projects see the Appendix to this Annex). As
shown in the figure below, they cover a wide range of technical fields in
agriculture, forestry and fisheries.
FAO Field programme delivery in LDCs by technical sector, 2000
Other*
23%
Crops
29%
Food & agricult ural

information
4%
Research,
technology
5%
Livestock
6%
Food sec urity
Natural resources 15%
8%
Forestry
10%
* Comprises, inter alia, fisheries (3 percent of the total budget value); rural development (3 percent);
food and agricultural policy (2 percent); agricultural support systems (2 percent); nutrition (1 percent);
and agricultural applications of isotopes and biotechnology (<1 percent).
Source: FAO Field Programme Management Information System.
Technical cooperation
In the crops sector, for example, an FAO project in Nepal helped
strengthen the country's capacity for introducing and testing improved
vegetable varieties, stimulated private sector involvement in production of
improved seeds, and contributed to an 85 percent increase in domestic
vegetable production.
Forestry projects have assisted in rehabilitation of tree cover in
Mauritania, capacity-building in forestry research in Bhutan, and
creation of a forestry crime monitoring programme in Cambodia.
In the natural resources sector, FAO has assisted sustainable
agriculture and soil conservation in environmentally fragile mountainous
areas of Haiti and helped improve irrigation and water conservation in
Djibouti. Livestock projects have increased veterinary vaccine production
in Ethiopia, and helped Angola detect and control transboundary
livestock diseases.
Fisheries projects are in progress in the Lao People’s
Democratic Republic, a provincial aquaculture programme, designed to
be replicated in other areas, and provide advice to Cape Verde on new
policies for its fisheries sector. Other Field Programme activities include
expansion of the national food information system in Eritrea, assistance
to fruit and vegetable marketing in Nepal, strengthening of the
agricultural extension system in Bangladesh, and support to national food
quality control in Lesotho, Bhutan and Cambodia.
In all of the above sectors, FAO provides also policy advice and
assistance to LDCs - for example, through projects for household food
security in Gambia, diversification of food production in Malawi, and a
review of sugar sub-sector policy in Mozambique.
Emergency assistance
FAO meets requests for emergency assistance in the agricultural,
livestock and fisheries sectors from LDCs affected by exceptional natural
or man-made calamities. It also assists them in the establishment of

programmes of disaster preparedness and in post-emergency measures,
and in the formulation and implementation of relief and rehabilitation
programmes that speed the return to sustainable agricultural development.
In October 2000, FAO was operating 42 emergency projects in 16 LDCs,
including provision of food storage facilities, livestock feed and animal
health inputs in Afghanistan, assistance to farmers in drought-affected
areas of Rwanda, and support to programmes for the war-affected
population in Sierra Leone. Delivery of emergency assistance in the year
2000 was over US$18 million, or 31 percent of all technical cooperation
provided to LDCs.
II. SPECIAL DIMENSIONS
The World Food Summit

The World Food Summit, held in Rome in November 1996, called
for concerted efforts at all levels to raise food production and improve
access for all to safe and nutritious food, with the objective of reducing
the present number of malnourished people in the world by half by the
year 2015. The Plan of Action adopted by the Summit focuses on the
following: assuring enabling political, social and economic conditions;
food production through sustainable agricultural development policies and
practices; improving access to food; fostering a fair and market-oriented
world trading system; dealing adequately with natural disasters and man-
made emergencies; and encouraging investment in agricultural and rural
development to promote food security.
Special Programme for Food Security (SPFS)

The SPFS constitutes FAO's major thrust toward achieving the
World Food Summit's goals. It aims at helping developing countries, in
particular the 78 low-income food-deficit countries (LIFDCs), to improve
food security at both household and national levels by promoting rapid
increases in productivity by small farmers in food production and other

rural activities, reducing annual fluctuations in production and improving
people’s access to food.
The central concept of the SPFS is to improve productivity and
broaden access to food by working directly with farmers and other
stakeholders in identifying and resolving constraints to agricultural
development (whether of a technical, economic, social, institutional or
policy nature) and demonstrating practical ways of increasing production
and productivity.
By March 2001, the SPFS was in operation in 34 LDCs (25 in
Africa, six in Asia and the Pacific, one in the Caribbean and two in the
Near East) while projects had been formulated or were in formulation for
five others. The Programme has had notable success in identifying
constraints to enhanced agricultural production and in introducing
improved technologies on a pilot scale or more generally. For example, in
the United Republic of Tanzania, the Government has adopted the SPFS
as a national programme following the successful completion of activities
that promoted improved water control, participatory transfer of improved
technologies for crop and small livestock production, and income
generation based on formation of participatory farmer groups. Technical
advice on irrigation is being provided by Egypt through a South-South
Cooperation agreement (see below) within the SPFS. In Cambodia, the
Programme has helped to achieve a 30 percent increase in rice yields and
increases in farm incomes, using the Farmers’ Field School extension
approach in introducing new production and post-production technologies.
In Nepal, more than 3,000 farmers have been trained in crop husbandry
and irrigation, in particular under a World Bank/FAO-assisted irrigation
project using the SPFS approach, while in Haiti, 2,500 farmers have
participated in farm demonstrations with assistance from experts from
Bolivia and Morocco.
Initially, SPFS projects were funded from FAO's own resources,
but have attracted increasing levels of support from the FAO bilateral
Trust Fund Programme, UNDP, other United Nations agencies,
international financial institutions, development banks, non-governmental
organizations (NGOs) and the private sector. To date, funds mobilized in

support of SPFS activities total more than US$230 million.
South-South Cooperation
Launched in 1996 within the framework of the Special
Programme for Food Security, FAO's South-South Cooperation (SSC)
initiative provides an opportunity for more advanced developing countries
to share with LDCs their experience and expertise in agriculture and rural
development. The more advanced developing countries provide
technicians and experts who work for two to three years with farmers,
livestock owners and fishing communities to increase their productivity
and production and to improve access to food. Funding is arranged on a
case-by-case basis but involves contributions from the cooperating
country, FAO’s Regular budget and the host country, in some cases in
conjunction with Trust Fund projects.
By April 2001, a total of 21 SSC agreements had been signed,
providing up to 2,100 field experts and technicians, and a further 17
agreements were expected to be signed soon.
Technical Co-operation among Developing Countries and

Countries in Transition (TCDC/TCCT)
FAO's TCDC/TCCT Programme provides another source of
technical expertise available to LDCs. So far 125 countries have signed
agreements under the Programme, providing more than 1,500 experts for
wide-ranging FAO priority programmes and projects in member
countries. Experts from the private sector and NGOs have also undertaken
a number of assignments.
III. SOURCES OF FUNDING
Trust Funds
In the period 1992-2000, some US$370 million of FAO’s
technical assistance to LDCs (or 43 percent of total delivery) was funded
by donors channelling their resources through FAO’s Trust Fund
Programme. About 30 percent of this support was for emergency projects.
Of increasing importance are Unilateral Trust Funds (UTFs), whereby
recipient governments themselves finance programmes and projects that
are implemented with FAO technical assistance. In 2000, FAO was
implementing 33 projects in LDCs through UTF arrangements.
United Nations Development Programme

UNDP has always been one of the largest funding sources for
FAO’s technical support, accounting for about US$350 million (or about
41 percent of total funding) for Field Programme projects in LDCs in
1992-2000. However, UNDP funding channelled through FAO has
declined substantially over the period, from some US$80 million in 1992
to US$12.5 million in 2000, due to a reorientation in UNDP’s
development assistance strategy and the introduction of the national
execution modality.
FAO Regular Budget

In addition to providing funds for the SPFS, FAO allocates
limited resources from its own budget for its Technical Cooperation
Programme (TCP), which responds rapidly to urgent and unforeseen
requests for technical assistance in agriculture, fisheries, forestry and rural
development. During 1992-2000 FAO provided such assistance to LDCs
totalling US$120 million (14 percent of total delivery).
Telefood Fund
Since 1997, FAO's annual, world-wide fund-raising campaign,
Telefood, has collected US$6 million for small, grassroots microprojects.
The campaign is supported by a variety of partners, including private
companies and institutions, local and national governments, NGOs, and
radio and television broadcasters. Telefood projects are designed to cost
less then US$10 000 each and are integrated to the extent possible into the
SPFS.
Support to investment
In addition to the direct assistance described above, FAO assists
member countries by identifying and preparing agricultural investment
projects and programmes for funding by international financial
institutions. Over the period 1992-2000, the FAO Investment Centre
helped generate total investment in agriculture for LDCs valued at a little
over US$3 143 million.
IV. OUTLOOK
FAO’s technical cooperation with developing countries largely

relies on extra-budgetary resources. Consequently, the volume and
effectiveness of its direct support to LDCs depends on the extent of such
funding. As regards official development assistance (ODA), annual
commitments to LDCs rose from an annual average of US$12 922 million
in 1981-1990 to US$15 564 million in 1991-1999,31 but the share of
agriculture in the total fell by 20 percent. This trend is a matter of concern,
as food security in LDCs will remain a major priority in the foreseeable
future, as was noted by the World Food Summit.
A major thrust of FAO's Medium Term Plan (2002-2007) is
accordingly to create the conditions and enabling mechanisms for a
31
See table 13 of the present paper.
substantial flow of extra-budgetary resources, primarily to meet requests

for technical assistance. It foresees continuous assessment of country
needs, and creation of partnership agreements with multilateral and
bilateral donors and private institutions to ensure coherent, longer-term
cooperation. It stresses early involvement of prospective donors in project
formulation and close monitoring of Field Programme performance.
A major opportunity for renewal of international commitment to
FAO's goals, and to its technical cooperation activities in LDCs, will
come in November 2001 when the Organization hosts a special high-level
conference (World Food Summit: Five years later) aimed at both
strengthening the political will and enhancing the financial resources
needed to reduce hunger and poverty.
Appendix to Annex I
FAO Field Projects in operation in LDCs in 2000
AFRICA
Angola
• Support for restructuring of the Fishery Statistics Services
• Emergency collection and conservation of plant genetic resources
• Surveillance and control of bovine pleuropneumonia and other
transboundary diseases
• Support for coordination and monitoring of emergency
agricultural activities
• Support for coordination of emergency operations and
resettlement of displaced persons
• Urgent multiplication of maize and bean seeds in the provinces of
Huila and Huambo
• Emergency supply of agricultural inputs to war-affected
populations in the province of Bengo
• Emergency supply of maize seed to war-affected populations in
the province of Huambo
• Support for the coordination of emergency agricultural operations
and supply of horticultural seeds
• Rehabilitation of the agricultural sector in the provinces of
Huambo and Huila
• Project of food security in the province of Uige
• Assistance to the Department of Food Security
• Artisanal fishing in Ambriz
Benin
• Support for the intensification and diversification components of
the Special Programme for Food Security
• Support for water control in the Special Programme for Food
Security
• Promotion of private irrigation
Burkina Faso
• Low-cost reclamation and development of three lowland areas
• Artisanal manufacture of farm metal silos for grain storage
• National policy of communication for rural development
• Support for training and production centres for young girls
• Formulation of support project for farmers' organizations and food
security
• Support for the encouragement of youth to remain on the land
• Land management: support for collaboration/coordination and
promotion
Burundi
• Reinforcement of the Fishery Statistics Unit
• Support for rehabilitation of the agricultural statistics system
• Project formulation mission: diversification under the Special
Programme for Food Security
• Development of small lowland areas under the Special
• Coordination of emergency agricultural operations in Burundi
• Emergency supply of agricultural inputs (bean and horticultural
seeds) to vulnerable populations affected by drought in Burundi
• Urgent production of quality seeds in crisis-affected areas
• Support for rehabilitation and management of the environment
Cape Verde
• Special Programme for Food Security: South-South Cooperation
Cape Verde/Cuba
• Review of fisheries management and development policy and
strategy
• Preparatory assistance for the national agricultural census
• Water management and control
• Fisheries development
• Promotion of micro-irrigation techniques
Central African Republic
• SPFS in Central African Republic
• Support for multiplication and distribution of healthy cassava

cuttings under the Special Programme for Food Security
• Introduction of low-cost water control techniques
Chad
• Support for implementation of the diversification component of
the Special Programme for Food Security
• Water control under the Special Programme for Food Security
• Support for the follow-up mechanism of the sectoral meeting on
rural development
• Support for revision of the Forest Code
Comoros
• Promotion of household food security
• Support for the strategy of revival of agricultural and rural
development. Control of blackleg in cattle
Democratic Republic of the Congo
• Support for multiplication and distribution of healthy cassava
cuttings in Lower-Congo and Kinshasa
• Emergency vaccination campaign against the major cattle diseases
• Emergency assistance for the rehabilitation of agricultural
production
• Support for the activation of community and local rural radio
• Emergency assistance for the reinforcement of fishery activities
• Supply of basic agricultural inputs to vulnerable households in the
provinces of Kivu
• Support for the agricultural integration of disadvantaged
households
• Production and distribution of quality seeds to vulnerable
households in the provinces of North and South Kivu
• Emergency agricultural assistance to affected populations in the
provinces of the East
• Emergency agricultural assistance to populations affected by the
crisis in the provinces of Kinshasa and Katanga
• Reinforcement of household food security in Kisangani
• Emergency supply of essential agricultural inputs to the war-

displaced, refugees and host populations
• Urban and peri-urban horticultural development
• Environmental management
Equatorial Guinea
• Special Programme for Food Security
• School vegetable gardens of the Special Programme for Food
Security
• Feasibility study of a small rural forestry unit
Eritrea
• Horticulture marketing development
• Technology transfer on cactus pear production and utilization
development of crop statistics methodology
• Preliminary assistance for launching banana production, quality
and export improvement programme
• Urgent provision of poultry to internally displaced families in the
Jejah Camp, Gash Barka Region
• Emergency distribution of vegetable seeds and farming hand tools
to assist internally displaced families
• Urgent provision of cereal seeds to drought-affected farmers in
the Lowlands, north-east Red Sea Region
• Development of crop statistics methodology
• Strengthening the documentation and information services of the
Ministry of Fisheries
Ethiopia
• Provision of seeds/animal fodder to destitute farmers
• Strengthening forest fire management
• Urgent distribution of seeds to drought affected farm families in
East and West Hararge, South Tigray and Amhara
• Support to the prevention and disposal of obsolete pesticides in
Ethiopia in an environmentally safe manner
• Agricultural information management
Gambia
• Emergency eradication of African Swine Fever and enhancement
of logistical and technical capacities, Department of Livestock
Service
• Cooperation between Indonesian farmers and Gambian Farmers'
Association at Jendi
• Special Programme for Food Security – Gambia
• Emergency assistance to flood-affected farming households
• Household food security
• Poverty Alleviation Programme: Household food security
component
Guinea
• Support for the development of urban and peri-urban horticulture
• Support for the development of rural fish farming
• National policy and strategy for the development of small-scale
irrigation
• Support for women's horticultural operations in Forecariah
Prefecture
• Support for realization of the national agricultural census
Guinea-Bissau
• Restructuring of the Ministry of Agriculture, Fisheries and
Natural Resources
• Reinforcement of veterinary services and optimization of
livestock sector
• Support for water control
• Reinforcement of the Department of Forests and Hunting for
enforcement of the new forest policy
• Rational utilization of forest resources in Guinea-Bissau
• Formulation mission - seed multiplication project
• Support for the development of grassroots production capacity
and oversight of the Bulletin on Agricultural Development Policy
• Emergency supply of agricultural inputs to the crisis-affected
populations
• Supply of fishing gear for revival of fisheries production
Lesotho
• Processing and analysis of agricultural census data
• Water control component of the Special Programme for Food
Security
Liberia
• Rehabilitation of the agricultural statistics system
• Emergency supply of basic farm inputs to restore productive
capacity of war-affected farmers
• Special Programme for Food Security: Water control and
intensification components
Madagascar
• Emergency supply of rice seed to farmers of Lake Alaotra
• Support for improvement of milk collection and processing
• Assessment of development prospects of rice sector
• Control and eradication of an epizootic of African swine fever
• Strengthening the technical capacity of the seeds control service
• Training of trainers in gender-based socio-economic analysis
• Emergency assistance for evaluation of harvests and food supplies
• Fruit and vegetable processing in the region of Morondava
• Support for the Environment Action Plan
• Food security project in Madagascar
• South-South Cooperation Madagascar-Vietnam- FAO Special
• FAO/Seecaline cooperation in food and nutrition
• Food security in the provinces of Toliara, Fiarantsoa and
Defiarantsoa
• Elaboration of the National Food Security Programme
Malawi
• Diversification component of the Special Programme for Food
Security
• Water control component of the Special Programme for Food
Security
• Sustainable livelihoods programme
• Containment of transboundary spread of foot-and-mouth disease

• Capacity building for forest policy implementation
Mali
• National strategy of training and integration of youth in the
agricultural and rural sector
• Support project for the development of urban and peri-urban
horticulture
• Revival of rural radio in Mali
Mauritania
• Support for the Community Nutrition Programme
• Establishment of a system of early warning and control of Rift
Valley fever and transboundary diseases
• Emergency assistance to food-affected farmers
• Emergency assistance for desert locust control
• Technical assistance to the oases development project
• Technical assistance to Sisaar, Mauritania.
• Contribution to strategy reflection on the fight against poverty in
the rural world
• Green belt of Nouakchott
Mozambique
• Urgent provision of seed and tools and strengthening the
coordination of the agricultural relief and rehabilitation
programme
• Emergency assistance to flood-affected farmers
• Rehabilitation of family agriculture in the provinces of Manica,
Maputo and Sofala
• Support for the rehabilitation of fisherfolk affected by the floods
in Sofala, Inhambane and Gaza Provinces
• Sustainable and immediate recuperation of losses due to the
floods, for peasants and the private sector
• Support to livestock disease prevention and rehabilitation of the
rural and family/cooperative poultry sector
• Mapping of flood-affected areas

• Assistance to the National Early Warning System of Mozambique
• Formulation and execution phases of Special Programme for Food
Security
• Community forestry and wildlife management
• Consolidation of the household food security and nutrition
information network
• Family sector livestock development programme
• Support to the Coordination Unit of the Ministry of Agriculture
and Rural Development
• Support to the judiciary in implementation of new legislation on
land, environment, forestry and wildlife
• Assistance in developing and implementing a national land
programme
• Marketing management assistance for food security
• Support to national agricultural development programme
PROAGRI (Agricultural census techniques)
• Agricultural census sub-component of PROAGRI
• PROAGRI - Fish quality control
• Pilot study on marine fish resources for artisanal fisheries
• Review of sugar sub-sector policy
Niger
• Emergency seed supply to flood-affected rural populations
• Support for the revival of production and marketing of gum arabic
• Promotion of date palm production
• Assistance for production and development of prosopis in the
Lake Region
• Drafting of a framework document for revival of the livestock
sector
• Promotion of agricultural input utilization by farmer groups
• South-South Cooperation Niger-Morocco-FAO Special
• Fight against poverty
Rwanda
• Support for the establishment of a planning, monitoring and
evaluation unit for agricultural sector programmes
• Support for the revival of activities of the national veterinary
laboratory
• Emergency assistance for the rehabilitation of agricultural
activities in Gisenyi Prefecture
• Emergency assistance for the cultivation of wetlands
• Emergency assistance to facilitate wetland cultivation in drought-
affected areas
• Emergency assistance to the drought-affected population of the
region of Bugesera
• Assistance to cooperatives for the revival of artisanal fisheries on
Lake Kivu
• Compilation of a technical reference on soil fertilization
Sierra Leone
• Emergency assistance to artisanal fisheries
• Emergency rehabilitation of agricultural food production
• Urgent provision of seeds and strengthening the coordination of
agricultural relief and rehabilitation programmes
• Emergency provision of essential agricultural inputs to war-
affected farmers
• Emergency assistance for the reintegration of returning refugees
• Support to preparation of an integrated rural development
programme
• Cassava production and processing project for the Maragiri and
Kabala district women
Tanzania, United Republic of
• Integrated production and pest management for sustainable
agriculture in Zanzibar
• Expansion of Phase I of the Special Programme for Food Security
to Zanzibar sites
• Emergency surveillance of rinderpest and other transboundary
animal diseases in Northern Tanzania
• Strengthening phytosanitary capabilities

• Emergency supply of vegetable seeds and hand tools to refugees
in Kigoma Region
• Emergency supply of seeds to drought-affected farmers
• Small livestock development for food security and poverty
alleviation
• Pilot initiative in FFS as alternative extension methodology
Togo
• Training in weed management and control
• Support for water control and management under the Special
• Fish farming and inland fisheries programme in Togo
Uganda
• Emergency provision of inputs to households affected by civil
strife and drought in N.E. Uganda
• Emergency provision of essential agricultural inputs to drought
and strife-torn households in Western Uganda
• Fish processing and fish export sector
• Enhancement of coffee quality through the prevention of mould
growth
• Small-scale irrigation development in support of the Special
• Support to rapid multiplication and distribution of cassava
cuttings
• Training in village-scale meat processing
Zambia
• Emergency supply of agricultural inputs to the refugees in
Mayukwayukwa and Meheba
• Training support in agricultural marketing, agribusiness and
agricultural finance
• Nutrition education in primary schools
• Training in integrated production and pest management
• Strengthening of revenue collection in the forestry sector
ASIA AND THE PACIFIC

Afghanistan
• Emergency provision of essential livestock feed and animal health
inputs to drought-affected farmers
• Emergency procurement of cereal seeds in Central Highlands
• Progressive control of major transboundary animal disease in
Afghanistan and neighbouring countries
• Women's veterinary clinics
• Procurement of prefabricated warehouses for safe storage of seed
and fertilizer
• Participatory community seed production programme of improved
varieties of food crops in Northern Afghanistan
• Food security through sustainable crop production
• Rehabilitation of sustainable potato production
• Livestock development for food security
Bangladesh
• Agricultural market information improvement
• Emergency supply of agricultural inputs to flood-affected farmers
• On-farm water management: pilot programme in support of the
Special Programme for Food Security
• Crop yield forecasting and agrometeorology
• Soil testing and fertility management project
• Empowerment of coastal fishing communities for livelihood
security
• Effects of arsenic-contaminated water on crop production
• Integrated pest management
• Community/smallholder livestock and dairy development
• Agro-ecological zones
• Integrated horticulture and nutrition development
• Seed quality control
Bhutan
• Strengthening national capacities for food control and effective
participation in Codex Alimentarius
• National strategy for use of stoves and other alternative energy-
saving technologies/ sources
• Horticulture produce, processing and storage
Cambodia
• Emergency supply of rice seeds to flood-affected farm households
• Urgent supply of small water pumps to flood-affected farmers
• Food security for poverty alleviation strategy
• Strengthening of the National Codex Committee
• Forestry crime monitoring and reporting
• Forest resources inventory
• Forestry policy and programme formulation
• Biodiversity enabling activities
• Participatory natural resources management in the Tonle Sap
Region
• Preparation of programmes to strengthen agricultural
organizations and rural development institutions
• Technical support to the Cambodian IPM training programme
• Technical support for Cambodia Area Rehabilitation and
Regeneration (Carere2)
• Environment impact assessment (Carere2)
• Technical assistance to World Bank/RGC agricultural
productivity improvement project (APIP) – agricultural statistics
sub-component
Lao People’s Democratic Republic
• Development of market information - marketing extension
capability
• Provincial aquaculture development
• Promotion of smallholders’ participation through an animal health
and production extension model
• Environmental policy and planning for sustainable agricultural

rural development
• Improved utilisation, quality and safety of fish and fisheries
products
Maldives
• Agricultural intensification and water control component of the
SPFS
• Strengthening banana production
Myanmar
• Upgrading the safety and quality of fishery products
• Agricultural market information service
• Agriculture and natural resources management in the Northern
Rakhine state
• Environmentally sustainable food security and micro-income
opportunities in the Dry Zone, critical watersheds (Southern Shan
state), and in the Ayeyarwaddy Delta
Nepal
• Technical assistance to Hills Leasehold Forestry Programme
• Poverty alleviation and sustainable household food security
• Assistance to the development of olive production
• Master Plan for agricultural marketing in Kathmandu Valley
• Small marketing infrastructure
• Kalimati wholesale market
Samoa
• Agricultural census and statistics
• Fruit tree development
Solomon Islands
• Capacity building for farming systems development in support of
the SPFS
Vanuatu
• Assistance in forestry legislation
NEAR EAST
Djibouti
• Management and development of irrigation and water
conservation techniques under the Special Programme for Food
Security
Somalia
• Emergency flood and rehabilitation of irrigation canals
• Provision of sorghum seed and tools to vulnerable farmers in Bay,
Bakool and Gedo Regions (Southern Somalia)
• Support to the Food Security Assessment Unit
• Nutrition surveillance
• Home gardening for urgent improvement of food security and
nutrition
Sudan
• Provision of essential agricultural inputs to war-affected
populations of South Sudan and support of household security
through coordination of agriculture and fisheries activities
• Emergency procurement of agricultural inputs
• Support to household food security activities of Operation
Lifeline Sudan
• Assistance to household food security - livestock sector in war-
affected areas of Southern Sudan and the Transition Zone
• Sustainable control of tsetse and trypanosomiasis
• Emergency strengthening of rinderpest surveillance and control in
Western Sudan
• Gezira scheme - raising productivity through broadening farmers’
choices on farm system/water management
• Special Programme for Food Security - Water control component
• Strengthening national phytosanitary services
Yemen
• Special Programme for Food Security - water control component
• Assistance to Qat policy formulation
• Surveillance and strategy formulation for rinderpest and other

major diseases
• Watershed management and waste water re-use in peri-urban
areas
• Sustainable water resources management
• Sustainable environmental management
CARIBBEAN
Haiti
• Reinforcement of national capacities for food control
• Definition of policy and elaboration of plan of action for fisheries
and aquaculture
• Promotion of sustainable agriculture and soil and water
conservation in the humid mountainous areas of Haiti -
Marmelade Region.
ANNEX II
FAO COMPENDIUM OF KEY STATISTICAL
INDICATORS FOR LEAST-DEVELOPED
COUNTRIES
FAO COMPENDIUM OF KEY STATISTICAL INDICATORS

FOR LEAST-DEVELOPED COUNTRIES 32
This document, which was prepared by staff in the Statistical Analysis

Service, Statistics Division, presents a set of data/indicators pertaining to
the food and agricultural sector for the Least-developed countries. This set
of data/indicators is prepared on a country by country basis for various
purposes, e.g., input to country briefs and background information for
food and agricultural development strategy papers. The information is
based on data disseminated by FAO through the FAOSTAT. However,
particularly with regard to macro-economic aggregates, data from other
sources such as the World Bank, have also been used.
Symbols used in the tables and sources
MLN US$ Millions of United States dollars

Inh Inhabitants
sq km Square kilometres
HA Hectares
kg nutr Kilograms of nutrients
no Number
kcal/day Calories per day
g/day grams per day
... Data not available
0 or 0.0 Zero or less than half the unit shown
NES Not elsewhere specified or included
A blank space has the same meaning as the symbol (...) defined above.
32
Compendium of Key Statistical Indicators for Least Developed Countries,
ESS/MISC/2000, FAO, Rome.
Technical notes
Definition of the Agricultural Sector
The definition of the agricultural sector may differ for different

parameters. For macro economic aggregates and population it relates to
agriculture in the broader sense, i.e. including fishing, forestry and
hunting, while for production and trade it refers to the narrow sense, i.e.
covering crops and livestock products only.
Population
• Total population
Data refer generally to the present-in-area (de facto) population within the
present geographical boundaries. The United Nations revise periodically
population series. The series presented are based on the 1998 revision).33
• Rural population
The rural/urban population estimates are prepared by the United Nations

Population Division.34 Usually the urban area is defined and the residual is
taken as rural. In practice, the criteria adopted for distinguishing between
urban and rural areas vary among countries. However, these criteria can
be roughly divided into three major groups: classification of localities of a
certain size as urban; classification of administrative centres of minor civil
divisions as urban; and classification of centres of minor civil divisions on
a chosen criterion, which may include type of local government, number
of inhabitants or proportion of population engaged in agriculture.
33
United Nations, 1999. World Population Prospects: The 1998 Revision. New York.
34
United Nations, 1997. World Urbanization Prospects: The 1996 Revision. New York.
• Economically active population (labour force)
Data refer to all persons engaged or seeking employment in an economic

activity, whether as employers, own-account workers, salaried employees
or unpaid workers assisting in the operation of a family farm or business.
Information on the economically active population is available from

national population censuses or labour-force surveys. The data
comparability is, however, limited by the different national statistical
treatment of certain categories – for example, unpaid family workers,
particularly housewives. Furthermore, some countries report information
on economic activity for persons of all ages, others only for persons of
specified ages – for example, 14 years and over. The International Labour
Office (ILO) systematically evaluates these data and makes them
consistent with internationally accepted standard concepts, prepares
estimates of the economically active population broken down by sector
(agriculture, industry and services) and makes projections of the total
economically active population.
The estimates of economically active population (total and agricultural)

presented are based on assessments made by ILO and are consistent with
the 1996 United Nations revision of total population estimates.35 However,
the ILO gives estimates only at ten-year intervals. Estimates for 1995,
1996, 1997, 1998 and 1999 have been obtained by interpolating the 1990
estimates and the projections for 2000 of the economically active
population.
• Economically active population in agriculture (agricultural labour

force)
The economically active population in agriculture is that part of the

economically active population engaged in or seeking work in agriculture,
hunting, fishing or forestry.
35
ILO, 1996. Economically Active Population, 1950-2010: The 4th Revision. Geneva.
• Density
Total population over land area.
Land use
It should be borne in mind that definitions used by reporting countries

vary considerably and items classified under the same category often
relate to greatly differing kinds of land.
• Land area
Total country area, excluding area under inland water bodies. The
definition of inland water bodies generally includes major rivers and
lakes.
• Arable land
Land under temporary crops (double-cropped areas are counted only

once), temporary meadows for mowing or pasture, land under market and
kitchen gardens and land temporarily fallow (less than five years). This
category does not include abandoned land resulting from shifting
cultivation. Data for “Arable land” are not meant to indicate the amount of
land that is potentially cultivable.
• Land under permanent crops
Land cultivated with crops that occupy the land for long periods and do
not need to be replanted after each harvest, such as cocoa, coffee and
rubber. This category includes land under flowering shrubs, fruit trees, nut
trees and vines, but excludes land under trees grown for wood or timber.
• Irrigation
Data on irrigation relate to areas equipped to provide water to the crops.

These include areas equipped for full or partial control irrigation, spate
irrigation areas, and equipped wetland or inland valley bottoms.
Agricultural production – major items
Included here in quantity terms, and in descending order of importance,

are the three major agricultural commodities (crops and livestock
products). The commodities are ranked on the basis of their price-
weighted quantities in 1998. This information has been extracted from the
FAO Production Index database. The FAO production index calculations
are based on 1989-91 constant “international commodity prices" derived
form the Geary-Khamis formula. This method assigns a single producer
price to each commodity. For example, one tonne of wheat has the same
price regardless of the country where it is produced.
The commodities covered are all crops and livestock products originating
in each country for which information is available. Practically all products
are covered, with the main exception of fodder crops. The calculations for
meat production are based on indigenous animals, including the meat
equivalent of exported live animals but excluding the meat equivalent of
imported live animals. Annual changes in livestock and poultry numbers
or in their average live weights are not taken into account.
Food production indices
The FAO indices of agricultural production show the aggregate volume of

agricultural production for each year in comparison with the base period
1989-91. They are based on the sum of price-weighted quantities of
different agricultural commodities produced, after deductions for
quantities used as seed and feed weighted in a similar manner. The
resulting aggregate represents, therefore, disposable production for any
use except as seed and feed.
All the indices at the country, regional and world levels are calculated by
the Laspeyres formula. Production quantities of each commodity are
weighted by 1989-91 average international commodity prices and
summed for each year. To obtain the index, the aggregate for a given year
is divided by the average aggregate for the base period 1989-91.
Since the FAO indices are based on the concept of agriculture as a single
enterprise, amounts of seed and feed are subtracted from the production
data to avoid counting them twice – once in the production data and once
with the crops or livestock produced from them. Deductions for seed (in
the case of eggs, for hatching) and for livestock and poultry feed apply to
both domestically produced and imported commodities. They cover
primary agricultural products used as such (e.g. maize and potatoes).
The “international commodity prices” described above are used in order to

avoid the use of exchange rates for obtaining regional and world
aggregates, and also to improve and facilitate international comparative
analysis of productivity at the national level. The currency unit in which
the prices are expressed has no influence on the indices published.
The commodities covered in the computation of indices of agricultural

production are all crops and livestock products originating in each
country. Practically all products are covered, with the main exception of
fodder crops. “Food production” includes commodities that are considered
edible and that contain nutrients. Accordingly, coffee and tea are excluded
along with inedible commodities because, although edible, they have
practically no nutritive value.
Indices for meat production are based on indigenous animals, including

the meat equivalent of exported live animals but excluding the meat
equivalent of imported live animals. Annual changes in livestock and
poultry numbers or in their average live weights are not taken into
account.
The FAO indices may differ from those produced by the countries
themselves because of differences in concepts of production, coverage,
weights, time reference of data and methods of calculation.
Foreign trade
• Total trade
Data refer to the total merchandise trade. In general, export values are
f.o.b. (free on board) and import values are c.i.f. (cost, insurance and
freight).
• Agricultural trade
Data refer to agriculture in the narrow sense, excluding fishery and

forestry products; the SITC divisions included are section 0 (excluding
division 03 and item 081.42), section 1, divisions 21, 22, 26 (excluding
groups 266, 267 and 269) and 29, group 232 and section 4 (excluding
subgroup 411.1).
• Major agricultural imports and exports
Included here in percentage terms, and in descending order of importance,

are the three major agricultural commodities (crops and livestock
products) imported and exported. Items are ranked on the basis of their
shares in 1998 total agricultural trade (imports or exports).
Inputs
• Fertiliser use
Data refer to total fertilizer consumption, obtained by adding the volumes

of nitrogenous, phosphate and potash fertilizers expressed in term of plant
nutrients (N, P2 O5 and K2O, respectively).
• Tractors in use
Data generally refer to total wheel and crawler tractors (excluding garden
tractors) used in agriculture.
Food supply
Data refer to the food availability for human consumption as estimated by

the FAO Food Balance Sheets (FBS). The FBS are compiled every year
by FAO with country-level data on the production of and trade in food
commodities. Using these data and the available information on seed
rates, waste coefficients, stock changes and types of utilization (feed,
food, other uses), a supply/utilization account is prepared for each
commodity in weight terms. The food component, which is usually
derived as a balancing item, refers to the total amount of the commodity
available for human consumption during the year. Besides commodity-by-
commodity information, the FBS also provide total food availability
estimates by aggregating the food component of all commodities after
conversion into nutritive values. From these values and the available
population estimates, the per caput dietary energy and protein supplies are
derived.
Macro Economic Aggregates36
• GDP at market prices
GDP measures the total output of goods and services for final use
occurring within the domestic territory of a given country, regardless of
the allocation to domestic and foreign claims. Cross domestic product at
purchaser values (market prices) is the sum of gross value added by all
resident and non-resident producers in the economy plus any taxes and
minus any subsidies not included in the value of the products. It is
calculated without making deductions for depreciation of fabricated assets
36
World Bank. 2000. World Development Indicators. Washington D.C.
or for depletion and degradation of natural resources. Data are in current

US dollars.
• GNP per caput, Atlas method
GNP per caput is converted to US dollars using the World Bank Atlas
method, divided by the midyear population. GNP is the sum of gross
value added by all resident producers plus any taxes (less subsidies) that
are not included in the valuation of output plus net receipts of primary
income (employee compensation and property income) from non-resident
sources. Data are in current US dollars.
The conversion into US dollars is usually at official exchange rates for

comparisons across economies, although an alternative rate is used when
the official exchange rate is judged to diverge by an exceptionally large
margin from the rate actually applied in international transactions .To
smooth fluctuations in prices and exchange rates, the World Bank uses a
special Atlas method of conversion. This applies a conversion factor that
averages the exchange rate for a given year and the two preceding years,
adjusted for differences in rates of inflation between the country and the
G-5 countries (France, Germany, Japan, the United Kingdom, and the
United States).
• Agriculture, value added
Value added in agriculture measures the output of the agricultural sector

less the value of intermediate inputs. “Agriculture” includes forestry,
hunting, and fishing.
• GDP and Agriculture Value Added, annual growth rates
The growth rates are calculated using constant price data in the local
currency.
Calculation of average annual growth rates
• Using the last and first observations of the period
The growth rate between two points in time is calculated from the
equation:
r = (ln(pn/p1)/n)
where pn and p1 are the last and first observations of the period, n is the
number of years in the period, and ln is the natural logarithm operator.
This calculation is applied to the population time series.
• Using all the observations of the time series
The growth rate is derived from an exponential curve fitted to the time
series by the least squares method. The growth rate, r, which uses all the
observations of the time series, is obtained as
r = (eb-1)*100
where b is estimated by least squares procedures.
The calculation is applied to the GDP time series.

AFGHANISTAN
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population & Agric. Labour Force
Population 1000 16 018 19 663 20 368 20 893 21 354 21 923
Population annual growth percent -0.8 4.9 3.5 2.5 2.2 2.6
Rural/Total Population percent 84 80 80 79 79 79
Density Inh/sq km 25 30 31 32 33
Agricultural Labour Force 1000 4 971 5 473 5 642 5 760 5 859 5 986
Agric. Labour Force/Total Labour Force percent 73 69 68 68 68 67
Land Use
Total Land 1000 HA 65 209 65 209 65 209 65 209 65 209
Arable Land + Permanent Crops 1000 HA 8 050 8 054 8 054 8 054 8 054
Arable Land 1000 HA 7 910 7 910 7 910 7 910 7 910
Irrigated Land 1000 HA 2 505 2 386 2 386 2 386 2 386
Agric. Production – Major Items*
Wheat 1000 MT 2 561 2 500 2 650 2 711 2 834 2 834
Indigenous sheep meat 1000 MT 128 117 117 117 117 117
Indigenous cattle meat 1000 MT 69 65 65 65 65 65
Food Production *
Food Production Index 1989-91=100 127 107 109 111 113 113
Per caput Food Production Index 1989-91=100 117 81 80 79 79 77
Foreign Trade – Exports
Total MLN US$ 581.4 155.0 155.0 150.0 150.0
Agricultural MLN US$ 299.9 95.6 104.3 86.6 86.6
Major Exports (share in Agriculture)
Skins dry-salted goats percent 0.9 22.0 20.1 24.2 24.2
Raisins percent 43.7 18.8 17.3 20.8 20.8
Grapes percent 5.5 12.0 22.0 17.3 17.3
Foreign Trade – Imports
Total MLN US$ 804.5 450.0 450.0 450.0 450.0
Major Imports (share in Agriculture)
Tea percent 17.3 24.8 22.2 36.2 53.5
Wheat percent 12.5 11.6 19.9 11.4 9.1
Sugar refined percent 26.7 10.2 11.1 12.5 8.4
Agricultural trade balance
Exports-imports MLN US$ 152.5 -86.1 -30.6 -65.3 -104.2
Land & Inputs
Total Population/Arable Land Inh/HA 2 2 3 3 3
Fertilizer use/Arable Land kg/nutrs/HA 6.2 0.0 0.6 0.6 0.6
Tractors/Arable Land no/1000 HA 0.1 0.1 0.1 0.1 0.1
Food Supply 1979-81 1989-91 1996-98

Per caput Dietary Energy Supply kcal/day 2 210 1 920 1 620
Per caput Dietary Protein Supply g/day 62 54 45
Source: derived from data extracted from FAOSTAT
* 1999 provisional
INDICATORS UNIT 1998 INDICATORS UNIT 1990-1998
Gross Domestic Product (GDP) MLN US$ ... Annual growth rate:
Agric. GDP as share of total GDP percent ... GDP percent ...
Gross National Product per caput US$ ... Agricultural GDP percent ...
Note: Agricultural GDP includes Forestry & Fisheries
Source: World Bank 2000. World Development Indicators (CD ROM)
ANGOLA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 7 019 10 972 11 342 11 715 12 092 12 479
Population annual growth percent 2.7 3.4 3.3 3.2 3.2 3.2
Land Use
Total Land 1000 HA 124 670 124 670 124 670 124 670 124 670
Arable Land 1000 HA 2 900 3 000 3 000 3 000 3 000
Irrigated Land 1000 HA 75 75 75 75 75
Cassava 1000 MT 1 150 2 550 2 500 2 326 3 211 3 130
Maize 1000 MT 303 211 398 370 505 428
Food Production *
Total MLN US$ 1 625.9 3 880.0 4 521 .0 4 221.9 2 880.0
Coffee, green percent 88.5 80.4 84.1 83.3 83.3
Hides wet-salted cattle percent 0.6 19.6 15.9 16.7 16.7

Total MLN US$ 1 380.9 1 700.0 2 053.0 2 332.3 2 120.0
Flour of wheat percent 5.7 7.9 8.9 12.6 11.8
Wine percent 2.3 9.5 7.4 8.5 9.1
Oil of soya beans percent 8.1 6.6 7.2 7.0 6.6
Exports-imports MLN US$ -217.7 -403.8 -455.6 -392.2 -366.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross Domestic Product (GDP) MLN US$ 7 472 Annual growth rate:
Agric. GDP as share of total GDP percent 12 GDP percent 0.1
Gross National Product per caput US$ 381 Agricultural GDP percent -4.1
BANGLADESH
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 88 208 118 616 120 594 122 650 124, 774 126 947
Rural/Total Population percent 89 82 81 81 79
Density Inh/sq km 678 911 926 942 959
Land Use
Total Land 1000 HA 13 017 13 017 13 017 13 017 13 017
Arable Land 1000 HA 8 894 7 823 7 860 7 901 7 992
Rice, paddy 1000 MT 20 125 26 398 28 184 26 152 28 293 29 857
Goat milk 1000 MT 406 1 160 1 280 1 328 1 280 1 280
Food Production *
Total MLN US$ 683.7 3 407.0 3 539.0 4 017.7 5 056.4
Jute percent 71.7 61.5 67.2 70.1 49.7
Tea percent 21.2 25.4 28.4 22.3 28.4
Vegetables fresh NES percent 0.2 0.0 0.0 0.6 9.0
Total MLN US$ 1 897.5 5 436.9 6 235.2 6 795.9 7 029.2
Agricultural MLN US$ 483.1 1 075.9 1 218.2 1 369.3 1 336.4
Cotton lint percent 20.5 9.6 12.4 13.9 16..9.
Milled paddy rice percent 10.3 11.3 9.8 2.2 14.3
Wheat percent 31.6 20.1 13.8 14.8 10.7
Exports-imports MLN US$ -299.1 -946.6 -1 112.2 -1 226.7 -1 177.3
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ 352 Agricultural GDP percent 2.2
BENIN
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 3 461 5 336 5 480 5 629 5 781 5 937
Land Use
Total Land 1000 HA 11 062 11 062 11 062 11 062 11 062
Arable Land 1000 HA 1 500 1 670 1 680 1 690 1 700
Yams 1000 MT 687 1 286 1 342 1 514 1 584 1 771
Cotton lint 1000 MT 7 130 166 155 150 175
Cassava 1000 MT 631 1 238 1 457 1 926 1 989 2 377
Food Production *
Total MLN US$ 47.6 414.0 424.0 407.0 420.0
Cotton lint percent 23.2 86.0 83.6 84.8 77.2
Cottonseed percent 1.4 7.5 9.2 8.6 12.3
Palm oil percent 8.5 2.0 1.9 1.8 2.9
Total MLN US$ 329.2 692.0 665.0 641.0 657.0
Beverages dist. alcoholic percent 14.5 5.3 8.0 8.0 7.4
Exports-imports MLN US$ -56.9 85.8 66.1 77.4 6.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
BHUTAN
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 1 318 1 847 1 893 1 945 2 004 2 064
Agricultural Labour Force 1000 637 848 866 887 910 934
Land Use
Total Land 1000 HA 4 700 4 700 4 700 4 700 4 700
Arable Land + Permanent Crops 1000 HA 121 150 155 160 160
Arable Land 1000 HA 104 130 135 140 140
Nutmeg, mace, cardamons 1000 MT 3 6 6 6 6 6
Oranges 1000 MT 25 58 58 58 58 58
Food Production *
Total MLN US$ 12.3 82.2 99.0 108.0 111.3
Nutmeg, mace, cardamons percent 64.1 14.1 14.1 14.1 14.1
Fruit fresh NES percent 0.0 11.7 11.7 11.7 11.7
Total MLN US$ 41.7 110.6 131.0 164.0 136.1
Wheat percent 5.0 15.6 15.7 15.7 15.7
Oil of veget. origin NES percent 48.9 7.7 7.7 7.7 7.7
Land & Inputs
Tractors/Arable Land no/1000 HA .. … … … …
Food Supply 1979-81 1989-91 1996-98

Per caput Dietary Energy Supply kcal/day … … … … …
Per caput Dietary Protein Supply g/day … … … … …
* 1999 provisional
Gross Domestic Product (GDP) MLN US$ 398 Annual growth rate:
BURKINA FASO
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 6 911 10 415 10 704 11 001 11 305 11 616
Land Use
Total Land 1000 HA 27 360 27 360 27 360 27 360 27 360
Arable Land 1000 HA 2 745 3 400 3 400 3 400 3 400
Cotton lint 1000 MT 25 64 88 144 136 136
Millet 1000 MT 390 734 811 737 973 973
Sorghum 1000 MT 620 1 266 1 254 1 094 1 203 1 203
Food Production *
Total MLN US$ 80.5 306.0 310.0 327.0 330.0
Cattle percent 12.2 14.1 16.2 16.7 13.4
Sheep percent 5.9 3.6 4.1 4.3 3.4
Total MLN US$ 334.3 666.9 747.8 734.1 750.0
Rice, broken percent 9.8 25.8 26.1 23.2 33.3
Wheat percent 6.2 11.1 15.2 22.5 20.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
BURUNDI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 4 136 6 156 6 265 6 362 6 457 6 565
Density Inh/sq km 161 240 244 248 251
Land Use
Total Land 1000 HA 2 568 2 568 2 568 2 568 2 568
Arable Land 1000 HA 923 770 770 770 770
Bananas 1000 MT 1 175 1 421 1 544 1 543 1 399 1 511
Beans, dry 1000 MT 286 319 288 271 275 227
Sweet potatoes 1000 MT 488 674 670 681 590 734
Food Production *
Total MLN US$ 82.2 104.3 37.4 87.6 85.0
Tea percent 2.5 10.0 15.2 10.5 17.4
Total MLN US$ 160.5 233.6 123.8 123.2 156.9
Malt of barley percent 18.4 24.3 32.4 30.3 35.2
Food prepared NES percent 2.7 5.6 7.1 7.1 9.1
Exports-imports MLN US$ 50.6 44.1 14.5 58.5 32.3
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Agric. GDP as share of total GDP percent 54 GDP percent -3.3
CAMBODIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 6 530 9 982 10 234 10 478 10 716 10 945
Land Use
Total Land 1000 HA 17 652 17 652 17 652 17 652 17 652
Arable Land 1000 HA 1 983 3 700 3 700 3 700 3 700
Rice, paddy 1000 MT 1 248 3 318 3 390 3 415 3 510 3 800
Indigenous pigmeat 1000 MT 7 82 86 88 88 88
Food Production *
Total MLN US$ 13.3 342.0 300.0 330.0 340.0
Agricultural MLN US$ 6.5 39.2 40.7 49.1 3.9.8
Rubber natural dry percent 40.7 94.4 75.6 77.4 72.9
Crude organic materls. percent 0.0 0.0 5.8 4.8 6.0
Must of grapes percent 0.0 0.0 4.8 3.9 4..9
Total MLN US$ 200.0 630.9 466.7 660.0 660.0
Cigars cheroots percent 0.0 0.0 17.3 16.2 18.7
Flour of mustard percent 0.0 0.0 10.4 9.7 11.2
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
CAPE VERDE
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 289 381 389 399 408 418
Land Use
Total Land 1000 HA 403 403 403 403 403
Arable Land 1000 HA 38 39 39 39 39
Pimento, allspice 1000 MT 0 1 1 1 1 1
Hen eggs 1000 MT 0 2 2 2 2 2
Food Production *
Total MLN US$ 3.3 9.0 12.7 14.0 10.0
Beverages non-alcoholic percent 0.0 20.5 43.1 43.1 41.7
Hides wet-salted cattle percent 0.6 15.4 32.5 32.5 31.5
Total MLN US$ 64.1 252.5 234.4 235.4 240.0
Dry whole cow milk percent 0.0 8.8 7.6 8.0 7.2
Land & Inputs
Fertilizer use/Arable Land kg/nutrs/HA 18 0.0 0.0 0.0 00.0
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ 1 199 Agricultural GDP percent 0.6
CENTRAL AFRICAN REPUBLIC

INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 2 314 3 288 3 354 3 420 3 485 3 550
Land Use
Total Land 1000 HA 62 298 62 298 62 298 62 298 62 298
Arable Land 1000 HA 1 867 1 930 1 930 1 930 1 930
Irrigated Land 1000 HA … … … … …
Groundouts in shell 1000 MT 123 86 91 97 102 110
Yams 1000 MT 153 320 340 340 360 360
Food Production *
Total MLN US$ 105.5 178.6 146.8 173.7 160.0
Cattle percent 1.1 1.7 4.4 1.2 4.2
Total MLN US$ 80.7 188.9 179.9 232.0 280.0
Cattle percent 29.6 9.1 10.0 9.5 14.0
Tobacco leaves percent 2.6 13.1 7.0 6.5 9.5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
CHAD
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 4 481 6 707 6 899 7 086 7 270 7 458
Land Use
Total Land 1000 HA 125 920 125 920 125 920 125 920 125 920
Arable Land 1000 HA 3 137 3 420 3 470 3 500 3 520
Groundnuts in shell 1000 MT 93 293 305 352 471 471
Cotton lint 1000 MT 30 61 86 86 103 103
Food Production *
Total MLN US$ 142.3 184.0 238.3 236.6 261.6
Cattle percent 59.0 13.8 15.6 14.8 17.6
Goats percent 1.4 4.1 4.7 4.4 5.3
Total MLN US$ 89.0 283.8 228.7 239.9 255.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
COMOROS
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 387 606 623 640 658 677
Density Inh/sq km 174 272 279 287 295
Land Use
Total Land 1000 HA 223 223 223 223 223
Arable Land 1000 HA 75 78 78 78 78
Bananas 1000 MT 32 56 57 58 59 59
Coconuts 1000 MT 53 71 73 74 75 75
Cloves, whole & stems 1000 MT 1 2 1 1 2 1
Food Production *
Total MLN US$ 14.4 11.3 6.4 8.7 8.8
Vanilla percent 54.5 93.6 81.8 74.5 82.8
Cloves, whole & stems percent 39.0 5.4 16.6 23.9 14.7
Copra percent 5.6 0.9 1.5 1.5 2.3
Total MLN US$ 30.2 62.6 64.3 55.4 54.3
Beef & veal percent 18.3 16.4 15.9 16.1 15.6
Chicken meat percent 0.0 7.0 12.9 13.0 12.7
Land & Inputs
Tractors/Arable Land no/1000 HA
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
CONGO, DEMOCRATIC REPUBLIC OF

INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 27 022 45 421 46 772 47 987 49 139 50 335
Land Use
Total Land 1000 HA 226 705 226 705 226 705 226 705 226 705
Arable Land 1000 HA 6 623 6 700 6 700 6 700 6 700
Cassava 1000 MT 12 942 19 378 16 887 16 973 17 060 16 500
Groundnuts in shell 1000 MT 334 598 388 400 412 395
Plantains 1000 MT 1 555 2 424 2 140 1 889 1 850 1 800
Food Production *
Total MLN US$ 1 217.8 461.0 432.0 450.0 450.0
Total MLN US$ 729.0 390.0 417.0 450.0 350.0
Wheat percent 18.2 14.6 17.0 11.1 7.7
Exports-imports MLN US$ 19.2 --122.8 -137,1 -167,3 -96,5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
DJIBOUTI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 282 601 610 617 623 629
Agricultural Labour Force 1000 … … ... … … …
Agric. Labour Force/Total Labour Force percent … … … … … …
Land Use
Total Land 1000 HA 2 318 2 318 2 318 2 318 2 318
Arable Land + Permanent Crops 1000 HA … … ... … …
Arable Land 1000 HA … … ... … …
Indigenous goat meat 1000 MT 2 2 2 2 2 2
Food Production *
Total MLN US$ 9.4 17.0 23.0 23.0 23.0
Cattle percent 54.6 89.2 89.2 89.2 51.7
Total MLN US$ 197.1 275.0 308.0 310.0 320.0
Palm oil percent 0.0 8.0 17.5 13.8 14.0
Land & Inputs
Total Population/Arable Land Inh/HA … … ... … …
Fertilizer use/Arable Land kg/nutrs/HA … … ... … …
Tractors/Arable Land no/1000 HA … … ... … …
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ … Agricultural GDP percent -0.5
EQUATORIAL GUINEA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 219 399 410 420 431 442
Land Use
Total Land 1000 HA 2 805 2 805 2 805 2 805 2 805
Arable Land 1000 HA 130 130 130 130 130
Cocoa beans 1000 MT 8 3 5 4 5 6
Coffee, green 1000 MT 6 5 4 3 3 4
Cassava 1000 MT 32 47 48 45 43 45
Food Production *
Total MLN US$ 22.6 83.7 72.0 73.0 73.0
Cocoa beans percent 97.0 94.1 98.3 98.7 99.7
Cocoa husks & shells percent 0.0 1.3 0.3 0.4 0.3

Total MLN US$ 30.6 58.0 100.0 103.0 103.0
Beer of barley percent 0.0 17.7 21.3 18.2 16.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

Per caput Dietary Energy Supply kcal/day … … …
Per caput Dietary Protein Supply g/day … … …
* 1999 provisional
ERITREA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 3 187 3 300 3 433 3 577 3 719
Population annual growth percent 2.9 3.5 4.9 4.1 3.9
Density Inh/sq km 32 33 34 35
Agricultural Labour Force 1000 1 259 1 297 1 343 1 393 1 441
Agric. Labour Force/Total Labour Force percent 79 79 78 78 78
Land Use
Total Land 1000 HA 10 100 10 100 10 100 10 100
Arable Land + Permanent Crops 1000 HA 440 371 393 500
Arable Land 1000 HA 438 369 391 498
Irrigated Land 1000 HA 22 22 22 22
Sorghum 1000 MT 68 50 59 270 150
Indigenous cattle meat 1000 MT 10 11 11 11 13
Roots & Tubes NES 1000 MT 82 80 85 85 87
Food Production *
Food Production Index 1989-91=100 110 102 105 148 127
Per caput Food Production Index 1989-91=100 99 89 88 119 98
Total MLN US$ 80.6 81.9 85.0 85.0
Agricultural MLN US$ 2.2 2.3 2.2 2.2
Sesame seed percent 93.0 86.1 90.7 90.7
Butter of cow milk percent 3.7 3.4 3.6 3.6
Flour of cereals percent 3.3 3.0 3.2 3.2
Total MLN US$ 403.8 482.2 500.0 500.0
Wheat percent 35.8 37.1 36.9 43.6
Cereals NES percent 0.0 13.6 15.3 18.4
Sugar refined percent 11.9 7.1 10.8 7.4
Exports-imports MLN US$ -27.2 -67.7 -76.4 -62.9
Land & Inputs
Total Population/Arable Land Inh/HA 7 9 9 7
Fertilizer use/Arable Land kg/nutrs/HA 3.7 13.5 15.3 13.1
Tractors/Arable Land no/1000 HA 0.7 0.9 1.1 1.2
Food Supply 1979-81 1989-91 1996-98

Per caput Dietary Energy Supply kcal/day 1 650
Per caput Dietary Protein Supply g/day 53
* 1999 provisional
Gross National Product per caput US$ 201 Agricultural GDP percent …
ETHIOPIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 55 354 56 789 58 218 59 649 61 095
Population annual growth percent 2.6 2.6 2.5 2.4 2.4
Density Inh/sq km 55 57 58 60
Agricultural Labour Force 1000 20 607 21 010 21 403 21 788 22 170
Agric. Labour Force/Total Labour Force percent 84 84 84 83 83
Land Use
Total Land 1000 HA 100 000 100 000 100 000 100 000
Arable Land + Permanent Crops 1000 HA 10 500 10 500 10 560 10 600
Arable Land 1000 HA 9 850 9 850 9 900 9 950
Indigenous cattle meat 1000 MT 235 267 270 274 290
Roots & Tubers NES 1000 MT 3 200 3 300 3 394 3 400 3 450
Cereals NES 1000 MT 1 343 1 793 2 037 1 329 1 670
Food Production *
Food Production Index 1989-91=100 108 125 126 116 123
Per caput Food Production Index 1989-91=100 94 106 104 94 97
Total MLN US$ 422.5 438.3 588.3 568.3
Coffee, green percent 67.5 65.4 71.9 68.7
Skin dry-salted sheep percent 8.5 9.2 8.4 8.1
Sesame seed percent 1.5 2.1 3.0 6..9
Total MLN US$ 1 142.0 1 030.9 1 100.0 1 420.0
Wheat percent 51.5 38.8 27.5 44.7
Oil of maize percent 5.9 6.5 11.0 8.0
Sorghum percent 8.9 5.9 1.9 5.5
Exports-imports MLN US$ 152.3 230.2 409.1 371.5
Land & Inputs
Total Population/Arable Land Inh/HA 6 6 6 6
Fertilizer use/Arable Land kg/nutrs/HA 13.3 18.0 13.3 16.5
Tractors/Arable Land no/1000 HA 0.3 0.3 0.3 0.3
Food Supply 1979-81 1989-91 1996-98

Per caput Dietary Energy Supply kcal/day 1 850
Per caput Dietary Protein Supply g/day 54
* 1999 provisional
GAMBIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 641 1 111 1 150 1 189 1 229 1 268
Density Inh/sq km 64 111 115 119 123
Land Use
Total Land 1000 HA 1 000 1 000 1 000 1 000 1 000
Arable Land 1000 HA 165 180 185 195 195
Groundnuts in Shell 1000 MT 79 75 46 78 73 126
Millet 1000 MT 18 54 61 66 65 76
Food Production *
Total MLN US$ 41.2 22.8 30.0 22.0 40.0
Groundnuts shelled percent 57.8 57.4 55.9 44.2 42.8
Oil of groundnuts percent 30.9 12.2 11.9 16.8 15.7
Cake of groundnuts percent 9.5 8.7 8.3 11.5 11.3
Total MLN US$ 141.2 245.4 239.0 252.0 245.0
Milled paddy rice percent 16.8 28.4 29..6 21.9 19.2
Sugar refined percent 15.9. 19.5 15.5 23.8 11.5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
GUINEA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 4 465 7 153 7 275 7 325 7 337 7 360
Land Use
Total Land 1000 HA 24 572 24 572 24 572 24 572 24 572
Arable Land 1000 HA 705 883 885 885 885
Rice, paddy 1000 MT 438 631 673 716 764 750
Groundnuts in Shell 1000 MT 83 132 145 158 174 174
Cassava 1000 MT 480 601 667 732 812 812
Food Production *
Total MLN US$ 386.6 650.0 758.8 730.0 800.0
Coffee, green percent 27.1 50. 8 31.9 47.9 34.9
Cattle percent 29.8 16.4 23.1 29.8 24.9
Total MLN US$ 308.5 750.0 858..6 1 000.0 1 090.0
Sugar reefed percent 4.6 9.6 9.8 16.4 18.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
GUINEA-BISSAU
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 793 1 086 1 111 1 136 1 161 1 187
Land Use
Total Land 1000 HA 2 812 2 812 2 812 2 812 2 812
Arable Land 1000 HA 256 300 300 300 300
Cashew nuts 1000 MT 4 37 38 38 38 38
Rice, paddy 1000 MT 54 133 120 125 130 130
Food Production *
Total MLN US$ 13.7 31.0 21.5 48.6 26.8
Cashew nuts percent 9.5 92.5 88.2 91.8 90.9
Palm kernels percent 32.3 0.5 1.3 0.5 1.4
Total MLN US$ 57.2 66.4 63.0 73.3 55.0
Wine percent 2.5 4.7 4.9 4.8 5.3
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
HAITI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 5 456 7 560 7 689 7 820 7 952 8 087
Density Inh/sq km 198 274 279 284 289
Land Use
Total Land 1000 HA 2 756 2 756 2 756 2 756 2 756
Arable Land 1000 HA 546 560 560 560 560
Mangoes 1000 MT 325 220 210 210 225 225
Bananas 1000 MT 217 235 239 250 288 290
Food Production *
Total MLN US$ 176.4 169.0 110.0 120.0 175.0
Mangoes percent 1.3 11.8 14.5 29.2 25.3
Total MLN US$ 356.1 652.0 665.0 648.0 797.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
KIRIBATI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 61 78 79 80 81 82
Density Inh/sq km 84 106 108 108 111
Agricultural Labour Force 1000 … … … … … …
Land Use
Total Land 1000 HA 73 73 73 73 73
Arable Land 1000 HA … … … … … …
Irrigated Land 1000 HA … … … … … …
Coconuts 1000 MT 72 81 85 85 85 85
Roots & Tubers NES 1000 MT 7 6 7 7 7 7
Food Production *
Total MLN US$ 10.6 7.4 5.3 6.3 6.5
Mangoes percent 0.0 59.4 71.0 69.7 74.2
Copra percent 100.0 40.6 29.0 30.3 25.8

Total MLN US$ 21.5 35.3 38.0 39.1 40.0
Tobacco products NES percent 8.8 7.5 6.2 5.8 18.0
Beef preparations percent 12.1 9.9 9.9 8.7 6.2
Land & Inputs
Total Population/Arable Land Inh/HA … … … … … …
Fertilizer use/Arable Land kg/nutrs/HA … … … … … …
Tractors/Arable Land no/1000 HA … … … … … …
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ 1 174 Agricultural GDP percent -0.4
LAO PDR
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 3 209 4 773 4 902 5 032 5 163 5 297
Land Use
Total Land 1000 HA 23 080 23 080 23 080 23 080 23 080
Arable Land 1000 HA 673 800 800 800 800
Rice, paddy 1000 MT 1 025 1 418 1 414 1 660 1 675 2 103
Food Production *
Total MLN US$ 21.2 372.6 325.9 359.0 370.0
Cattle percent 0.0 27.8 35.4 33.7 33.1
Buffaloes percent 0.0 24.7 31.5 30.0 29.5
Total MLN US$ 90.7 697.7 689.5 706.0 553.0
Whole milk, condensed percent 0.0 23.2 18.3 15.4 11.5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
LESOTHO
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 1 346 1 926 1 970 2 016 2 062 2 108
Land Use
Total Land 1000 HA 3 035 3 035 3 035 3 035 3 035
Arable Land 1000 HA 298 320 322 325 325
Maize 1000 MT 112 63 188 142 119 125
Food Production *
Total MLN US$ 52.0 160.2 190.0 196.2 193.9
Wool, greasy percent 32.3 63.0 48.6 55.1 55.7
Food wastes percent 4.8 9.2 11.8 11.8 12.0
Hair fine animal percent 22.9 11.9 23.0 11.3 11.4
Total MLN US$ 456.5 1 102.5 1 126.9 1 188.2 945.0
Flour of maize percent 13.2 16.0 16.4 16.4 16.4
Maize percent 5.3 15.3 13.5 13.5 13.5
Cabbages percent 0.0 5.7 5.9 5.9 5.9
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
LIBERIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 1 876 2 090 2 198 2 402 2 666 2 930
Population annual growth percent 3.0 -0.4 5.0 8.9 10.4 9.4
Land Use
Total Land 1000 HA 9 632 9 632 9 632 9 632 9 632
Arable Land 1000 HA 126 190 190 190 190
Rice, paddy 1000 MT 254 56 94 168 210 210
Cassava 1000 MT 300 175 213 283 313 313
Natural rubber 1000 MT 81 13 25 52 35 35
Food Production *
Total MLN US$ 55.4 400.0 512.0 500.0 500.0
Palm oil percent 1.7 11.7 6.1 3.3 12.0
Total MLN US$ 505.9 350.0 405.0 400.0 400.0
Wheat percent 4.4 10.8 17.7 15.1 9.2
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross Domestic Product (GDP) MLN US$ … Annual growth rate:
Agric. GDP as share of total GDP percent … GDP percent …
Gross National Product per caput US$ … Agricultural GDP percent …
MADAGASCAR
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 8 876 13 744 14 183 14 620 15 057 15 497
Land Use
Total Land 1000 HA 58 154 58 154 58 154 58 154 58 154
Arable Land 1000 HA 2 495 2 565 2 565 2 565 2 565
Irrigated Land 1000 HA 646 1 087 1 087 1 090 1 090
Rice, paddy 1000 MT 2 055 2 450 2 500 2 558 2 447 2 637
Cassava 1000 MT 1 641 2 400 2 353 2 418 2 404 2 435
Food Production *
Total MLN US$ 366.0 368.8 300.3 224.4 257.6
Cloves, whole & stems percent 18.4 5.5 4.1 13.4 10.8
Vanilla percent 6.7 16.7 8.6 10.5 8.4
Total MLN US$ 576.8 548.5 507.9 471.3 513.4
Wheat percent 0.0 14.3 21.7 3.9 19.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
MALAWI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 6 178 9 670 9 835 10 067 10 346 10 640
Density Inh/sq km 66 103 105 107 110
Land Use
Total Land 1000 HA 9 408 9 408 9 408 9 408 9 408
Arable Land 1000 HA 1 518 1 875 1 875 1 875 1 875
Maize 1000 MT 1 275 1 661 1 793 1 226 1 772 2 480
Tobacco leaves 1000 MT 53 129 142 158 125 113
Pigeon peas 1000 MT 84 98 99 98 99 100
Food Production *
Total MLN US$ 259.9 439.8 517.1 568.8 460.0
Tea percent 15.6 6.8 6.6 12.2 13.7
Sugar (centrifugal, raw) percent 16.6 4.1 8.3 5.8 10.2
Total MLN US$ 395.7 511.5 623.3 580.2 530.0
Maize percent 12.6 57.0 35.5 4.9 26.2
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
MALDIVES
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 158 249 256 263 271 278
Population annual growth percent 2.9 2.8 2.8 2..8 2.8 2.8
Density Inh/sq km 527 830 854 878 903
Land Use
Total Land 1000 HA 30 30 30 30 30
Arable Land 1000 HA 1 1 1 1 1
Irrigated Land 1000 HA … … … … … …
Vegetables fresh NES 1000 MT 15 24 24 25 25 25
Nuts NES 1000 MT 1 2 2 2 2 2
Fruit fresh NES 1000 MT 7 8 8 9 9 9
Food Production *
Total MLN US$ 7.0 50.0 59.2 73.0 76.0

Total MLN US$ 24.5 268.0 300.4 349.0 354.0
Cigarettes percent 0.0 7.6 8.3 9.3 9.3
Dry whole cow milk percent 0.0 7.7 8.6 8.3 9.0
Land & Inputs
Total Population/Arable Land Inh/HA … … … … …
Fertilizer use/Arable Land kg/nutrs/HA … … … … …
Tractors/Arable Land no/1000 HA … … … … …
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ 1 127 Agricultural GDP percent -2.7
MALI
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 6 871 9 944 10 186 10 436 10 694 10 960
Land Use
Total Land 1000 HA 122 019 122 019 122 019 122 019 122 019
Arable Land 1000 HA 2 011 3 379 4 606 4 606 4 606
Cotton lint 1000 MT 48 128 169 190 218 218
Rice, paddy 1000 MT 169 469 463 576 589 589
Food Production *
Total MLN US$ 200.7 442.1 439.5 561.5 556.2
Cattle percent 44.8 27.8 24.0 27.7 30.9
Sheep percent 7.0 6.5 5.6 6.5 7.2
Total MLN US$ 395.9 773.0 768.0 689.0 750.0
Tea percent 5.1 15.0 8.6 6.4 12.4
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
MAURITANIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 1 551 2 329 2 394 2 461 2 529 2 598
Land Use
Total Land 1000 HA 102 522 102 522 102 522 102 522 102 522
Arable Land 1000 HA 212 498 488 488 488
Indigenous camel meat 1000 MT 11 25 25 25 25 25
Food Production *
Total MLN US$ 201.0 471.9 462.9 447.9 447.9
Cattle percent 56.1 52.6 55.0 55.0 55.2
Sheep percent 26.9 23.7 22.3 22.3 22.4
Goats percent 14.7 14.5 13.6 13.6 13.7
Total MLN US$ 269.9 245.0 250.0 240.0 240.0
Wheat percent 4.5 0.0 8.8 13.1 41.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
MOZAMBIQUE
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 12 095 17 388 17 950 18 443 18 880 19 286
Agricultural Labour Force 1000 5 629 7 428 7 629 7798 7 941 8 069
Land Use
Total Land 1000 HA 78 409 78 409 78 409 78 409 78 409
Arable Land 1000 HA 2 887 3 120 3 120 3 120 3 120
Cassava 1000 MT 3 567 4 178 4 734 5 337 5 639 5 650
Maize 1000 MT 383 734 947 1 042 1 124 1 185
Food Production *
Total MLN US$ 271.8 169.0 193.0 200.0 210.0
Cashew nuts shelled percent 34.9 27.5 26.3 21.1 24.6
Total MLN US$ 723.0 784.0 744.0 760.0 910.0
Wheat percent 29.0 12.1 15.9 16.2 24.7
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
MYANMAR
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 33 831 42 877 43 393 43 936 44 497 45 059
Land Use
Total Land 1000 HA 65 755 65 755 65 755 65 755 65 755
Arable Land 1000 HA 9 582 9 540 9 543 9 556 9 548
Rice, paddy 1000 MT 12 637 17 957 17 835 17 673 16 651 17 075
Beans, dry 1000 MT 239 746 935 844 1 078 1 207
Vegetables fresh NES 1000 MT 1 217 2 260 2 430 2 480 2 480 2 480
Food Production *
Total MLN US$ 437.5 883.0 880.7 1 002.0 1 200.0
Beans, dry percent 9.7 58.2 63.7 52.7 64.5
Natural rubber percent 5.1 7.7 8.5 10.5 10.8
Total MLN US$ 478.1 1 813.1 1 905.6 2 261.0 2 900.0
Palm oil percent 39.2 49.3 25.1 55.4 58.5
Exports-imports MLN US$ 197.4 -8.3 75.6 119.4 -46.3
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
NEPAL
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 14 503 21 272 21 791 22 316 22 847 23 385
Density Inh/sq km 101 149 152 156 160
Land Use
Total Land 1000 HA 14 300 14 300 14 300 14 300 14 300
Arable Land 1000 HA 2 290 2 898 2 898 2 898 2 898
Irrigated Land 1000 HA 521 1 134 1 135 1 135 1 135
Rice, paddy 1000 MT 2 361 3 579 3 699 3 579 3 641 3 710
Vegetables fresh NES 1000 MT 517 1 257 1 327 1 357 1 449 1 449
Buffalo milk 1000 MT 500 653 665 702 729 744
Food Production *
Total MLN US$ 129.9 353.9 355.4 394.1 416.3
Sugar cane percent 15.3 36.6 33.0 32.7 30.5
Lentils percent 0.0 1.7 10.2 12.9 18.3
Pulses NES percent 7.7 13.3 8.6 13.0 12.2
Total MLN US$ 314.8 1 273.2 1 386.9 1 647.0 1 345.8
Oil of rapeseed percent 0.0 4.3 11.4 7.9 9.8
Wool, scoured percent 0.0 14.7 21.1 19.7 9.6
Areca nuts (betel) percent 0.0 5.9 2.0 4.5 5.6
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
NIGER
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 5 589 9 150 9 454 9 764 10 078 10 400
Land Use
Total Land 1000 HA 126 670 126 670 126 670 126 670 126 670
Arable Land 1000 HA 3 464 4 994 4 994 4 994 4 994
Millet 1000 MT 1 311 1 769 1 761 1 352 2 391 2 253
Cow peas, dry 1000 MT 282 184 295 192 775 641
Food Production *
Total MLN US$ 494.2 286.7 301.7 269.1 297.6
Cattle percent 42.1 59.5 50.6 48.9 44.7
Sheep percent 11.5 9.9 10.9 11.3 13.0
Camels percent 0.0 5.4 5.6 5.5 10.5
Total MLN US$ 526.4 438.0 433.3 436.7 383.4
Kolanuts percent 2.2 13.8 15.0 15.4 14.6
Exports-imports MLN US$ -10.7 -49,5 -46,4 -46.0 -58.1
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
RWANDA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 5 162 5 259 5 475 5 962 6 604 7 235
Population annual growth percent 3.2 -2.0 4.0 8.5 10.2 9.1
Density Inh/sq km 209 213 222 242 268
Land Use
Total Land 1000 HA 2 467 2 467 2 467 2 467 2 467
Arable Land + Permanent Crops 1000 HA 1 024 940 1 000 1 050 1 070
Arable Land 1000 HA 760 700 750 800 820
Plantains 1000 MT 2 136 2 002 2 105 2 248 2 625 2 897
Beans, dry 1000 MT 185 118 105 134 154 140
Food Production *
Total MLN US$ 88.5 71.8 112.1 93.0 64.4
Tea percent 13.2 9.9 14.7 16.3 17.2
Skins wet-salted goats percent 2.4 4.8 4.8 4.6 4.9
Total MLN US$ 252.3 237.0 204.5 299.0 287.0
Maize percent 0.0 25.4 39.6 22.3 16.6
Palm oil percent 1.8 12.1 10.0 13.0 12.1
Wheat percent 4.9 0.7 0.4 0.5 11.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
SAMOA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 155 168 170 172 174 177
Land Use
Total Land 1000 HA 283 283 283 283 283
Arable Land 1000 HA 55 55 55 55 55
Coconuts 1000 MT 169 130 130 130 130 130
Taro (Coco Yam) 1000 MT 35 37 37 37 37 37
Food Production *
Total MLN US$ 15.7 8.8 9.8 14.0 12.0
Oil of coconuts percent 0.5 27.8 43.3 43.7 43.6
Fruit prepared NES percent 4.2 38.1 21.9 22.1 22.2
Copra percent 55.1 9.4 19.1 19.3 19.9
Total MLN US$ 65.4 92.1 99.0 97.0 97.0
Mutton & lamb percent 7.6 10.6 13.2 12.5 14.1
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Gross National Product per caput US$ 1 067 Agricultural GDP percent …
SAO TOME & PRINCIPE

INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 94 133 135 138 141 144
Density Inh/sq km 98 138 141 144 147
Land Use
Total Land 1000 HA 96 96 96 96 96
Arable Land 1000 HA 1 2 2 2 2
Bananas 1000 MT 3 18 25 35 36 38
Coconuts 1000 MT 35 24 25 26 27 28
Taro (Coco Yam) 1000 MT 3 11 16 20 22 23
Food Production *
Total MLN US$ 23.8 7.8 5.0 5.0 6.0
Copra percent 5.9 1.3 1.0 1.2 0.7
Total MLN US$ 26.1 34.0 28.0 16.0 20.0
Wine percent 6.6 22.6 25.2 30.6 28.9
Land & Inputs
Total Population/Arable Land Inh/HA … 66 68 69 71
Tractors/Arable Land no/1000 HA … 62.5 62.5 62.5 62.5
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
SIERRA LEONE
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 3 236 4 188 4 289 4 420 4 568 4 717
Land Use
Total Land 1000 HA 7 162 7 162 7 162 7 162 7 162
Arable Land 1000 HA 450 485 485 484 484
Rice, paddy 1000 MT 504 356 392 411 328 247
Coffee, green 1000 MT 11 25 25 31 31 15
Vegetables fresh NES 1000 MT 141 155 155 155 155 155
Food Production *
Total MLN US$ 187.4 100.0 110.0 100.0 110.0
Total MLN US$ 346.8 150.0 212.0 150.0 150.0
Cattle percent 8.6 8.5 8.3 8.7 8.6
Wheat percent 3.8 1.8 2.9 3.6 5.1
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
SOLOMON ISLANDS
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 227 379 392 404 417 430
Land Use
Total Land 1000 HA 2 799 2 799 2 799 2 799 2 799
Arable Land 1000 HA 40 42 42 42 42
Coconuts 1000 MT 228 224 230 238 240 240
Palm oil 1000 MT 15 30 29 29 29 31
Food Production *
Total MLN US$ 69.1 168.5 162.0 155.9 141.4
Palm oil percent 32.2 52.9 51.4 56.8 42.2
Oil of coconuts percent 0.0 3.3 5.2 6.1 17.6
Total MLN US$ 69.3 154.7 150.9 183.8 159.4
Wheat percent 0.0 3.1 7.1 11.8 12.6
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Agric. GDP as share of total GDP percent … GDP percent 3.6
Gross National Product per caput US$ 756 Agricultural GDP percent …
SOMALIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 5 823 8 201 8 467 8 821 9 237 9 672
Population annual growth percent 4.3 2..0 3.2 4.1 4.6 4.6
Land Use
Total Land 1000 HA 62 734 62 734 62 734 62 734 62 734
Arable Land 1000 HA 984 1 035 1 038 1 039 1 040
Sheep milk 1000 MT 315 430 440 450 430 410
Cow milk, whole, fresh 1000 MT 477 560 570 580 540 500
Food Production *
Total MLN US$ 142.6 145.0 150.0 150.0 150.0
Sheep percent 29.1 46.9 46.1 46.2 46.2
Goats percent 31.2 30.8 30.3 30.4 30.4
Bananas percent 8.6 13.4 14.5 14.3 14.3
Total MLN US$ 368.8 193.0 170.0 180.0 180.0
Maize percent 7.3 0.1 0.6 0.2 18.3
Exports-imports MLN US$ -18.7 1.3 -11.0 -12.2 -27.9
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
SUDAN
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 18 682 26 617 27 260 27 718 28 292 28 883
Land Use
Total Land 1000 HA 237 600 237 600 237 600 237 600 237 600
Arable Land 1000 HA 12 365 16 157 16 672 16 700 16 700
Cow milk, whole, fresh 1000 MT 1 352 2 760 2 880 2 928 2 952 2 976
Sorghum 1000 MT 2 293 2 450 4 179 3 159 4 781 3 045
Food Production *
Total MLN US$ 574.3 507.0 620.2 594.2 596.0
Sheep percent 6.2 13.9 13.2 12.8 14.2
Total MLN US$ 1 565.0 1 025.0 1 504.4 1 579.7 1 915.0
Wheat percent 15.8 11.7 16.8 23.7 26.6
Tea percent 7.1 10.2 11.8 9.8 10.5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
TANZANIA, UNITED REPUBLIC OF

INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 18 588 29 925 30 700 31 417 32 102 32 793
Land Use
Total Land 1000 HA 88 359 88 359 88 359 88 359 88 359
Arable Land 1000 HA 2 900 3 748 3 750 3 750 3 750
Cassava 1000 MT 5 432 5 969 5 992 5 700 6 128 7 182
Maize 1000 MT 1 762 2 567 2 663 1 879 2 750 2 458
Food Production *
Total MLN US$ 571.5 682.9 761.7 718.8 676.2
Cashew nuts percent 4.7 14.8 18.8 17.1 26.5
Total MLN US$ 1 183.4 1 540.8 1 393.8 1 337.7 1 453.4
Palm oil percent 1.7 27.8 21.1 23.8 25.7
Maize percent 25.8 6.2 0.1 1.6 10.2
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
TOGO
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 2 616 4 060 4 172 4 284 4 397 4 512
Land Use
Total Land 1000 HA 5 439 5 439 5 439 5 439 5 439
Arable Land 1000 HA 1 950 2 200 2 300 2 250 2 200
Yams 1000 MT 498 531 605 683 696 696
Cotton lint 1000 MT 7 42 52 65 69 69
Maize 1000 MT 150 290 388 452 350 350
Food Production *
Total MLN US$ 253.8 222.0 238.7 224.0 240.0
Cotton carded combed percent 0.0 0.0 12.1 12.5 18.9
Total MLN US$ 501.5 506.9 425.1 400.7 446.5
Wheat percent 9.3 18.2 16.5 21.5 25.3
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
TUVALU
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 8 10 11 11 12 11
Population annual growth percent 2.2 2.8 2.8 2.7 7.0 -1.6
Density Inh/sq km 255 341 351 361 387
Land Use
Total Land 1000 HA 3 3 3 3 3
Arable Land + Permanent Crops 1000 HA … … … … …
Arable Land 1000 HA … … … … …
Coconuts 1000 MT 5 2 2 2 2 2
Food Production *
Total MLN US$ 1.2 0.1 0.1 0.1 0.1

Total MLN US$ 2.9 9.3 8.2 10.0 10.0
Milled/husked rice percent 5.1 12.8 17.6 16.9 16.8
Land & Inputs
Total Population/Arable Land Inh/HA … … … … …
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
UGANDA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 13 110 18 935 19 464 20 000 20 554 21 143
Land Use
Total Land 1000 HA 19 965 19 965 19 965 19 965 19 965
Arable Land 1000 HA 4 093 5 060 5 060 5 060 5 060
Plantains 1000 MT 5 896 9 012 9 144 9 303 9 318 9 400
Cassava 1000 MT 2 133 2 224 2 245 2 291 3 204 3 400
Food Production *
Total MLN US$ 343.8 575.9 665.3 558.0 512.0
Tea percent 0.2 1.9 3.5 6.4 9.3
Maize percent 0.0 4.9 3.6 4.4 4.3
Total MLN US$ 322.1 1 047.6 729.4 800.0 850.0
Malt of barley percent 1.5 10.9 27.4 13.5 14.5
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
VANUATU
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 117 169 173 177 182 186
Land Use
Total Land 1000 HA 1 219 1 219 1 219 1 219 1 219
Arable Land 1000 HA 18 30 30 30 30
Coconuts 1000 MT 326 280 280 407 339 339
Food Production *
Total MLN US$ 36.7 28.3 30.1 35.3 33.9
Copra percent 75.8 51.7 56.3 64.4 51.6
Veg. prod. fresh or dried percent 0.0 2.3 2.9 3.3 24.4
Beef & veal, boneless percent 2.2 20.1 19.1 13.4 8.9
Total MLN US$ 65.5 95.0 100.3 96.9 91.5
Wine percent 3.8 6.1 4.8 5.1 5.6
Exports-imports MLN US$ 4.5 2.7 -1.7 7.3 12.6
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
Agric. GDP as share of total GDP percent … GDP percent 3.8
YEMEN
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 8 221 15 022 15 674 16 290 16 887 17 488
Land Use
Total Land 1000 HA 52 797 52 797 52 797 52 797 52 797
Arable Land 1000 HA 1 367 1 440 1 445 1 450 1 500
Indigenous chicken meat 1000 MT 3 47 55 56 61 61
Sorghum 1000 MT 613 464 365 358 474 321
Food Production *
Total MLN US$ 697.5 1 587.4 1 964.3 2 480.8 2 570.0
Coffee roasted percent 1.1 36.9 42.1 42.1 42.1
Hide NES percent 2.3 12.4 18.5 18.5 18.5
Total MLN US$ 3 001.4 1 290.8 1 511.8 2 015.5 2 167.3
Agricultural MLN US$ 714.1 908.6 1 197.7 1 105.2 911.7
Wheat percent 13.6 16.6 12.8 19.3 13.2
Exports-imports MLN US$ -685.3 -819.3 -1 154.9 -1 062.4 -869.0
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional
ZAMBIA
INDICATORS UNIT 1979-81 1995 1996 1997 1998 1999
Population 1000 5 732 8 193 8 389 8 585 8 781 8 976
Land Use
Total Land 1000 HA 74 339 74 339 74 339 74 339 74 339
Arable Land 1000 HA 5 094 5 260 5 260 5 260 5 260
Maize 1000 MT 941 738 1 409 960 638 856
Cassava 1000 MT 288 590 620 702 817 850
Food Production *
Total MLN US$ 1 249.1 1.185.9 1 252.7 1 100.0 900.0
Total MLN US$ 973.7 950.0 1 194.5 700.0 650.0
Maize percent 37.3 29.8 18.5 17.3 44.8
Wheat percent 21.8 6.4 21.5 4.2 6.8
Food prepared NES percent 1.5 3.0 2.8 7.7 4.8
Land & Inputs
Food Supply 1979-81 1989-91 1996-98

* 1999 provisional

The Role of Agriculture in The Development of Least-Developed Countries and Their Integration Into The World Economy

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THE ROLE OF AGRICULTURE IN THE

Commodities and Trade Division

THE ROLE OF AGRICULTURE IN THE DEVELOPMENT

ANNEX I. FAO TECHNICAL ASSISTANCE TO

ANNEX II. FAO COMPENDIUM OF KEY STATISTICAL

This volume contains contributions originally prepared by FAO for the

THE ROLE OF AGRICULTURE IN THE DEVELOPMENT

This paper examines the role of the agricultural sector in poverty

Agriculture is the mainstay of the LDC economies, underpinning

The poor performance of agriculture in the LDCs is related to the

At the same time, with the growing integration of markets from

The paper highlights elements of a strategy for action by the

Recommendations for key actions to spur agricultural growth in

The paper proposes the following priority measures:

1. The LDC governments must commit themselves to a coherent and

2. Such action on the part of the LDC governments can be rendered

− Increase ODA and other forms of assistance to help the LDCs

Role of agriculture in the economy

The agricultural sector is at the heart of the economies of the

Thus, significant progress in promoting economic growth,

The challenges of globalization and trade liberalization

Although globalization offers opportunities for growth and

of world agricultural exports in the early 1970s to just around 1 percent in

LDCs face many difficulties, both internal and external, in their

Effective ways need to be found to support LDCs with a view to

Scope of the paper

I. THE PRESENT SITUATION OF AGRICULTURE

Despite its importance to the economy, agriculture in LDCs has

Table 1. Agricultural and food production in the 1980s and 1990s in

Source: Computations based on volume indices (FAOSTAT 2000).

Determining factors and constraints

Most LDCs have considerable unexploited potential in

Land and water resource potential and constraints

The most fundamental factor influencing the agricultural

area is basic to national agricultural planning. Comparing the potentially

Potential for growth in agricultural productivity and its importance

growth. Given the increasing pressure on agricultural resources, however,

increasingly contributing to food consumption of the population and to

(iv) Forestry and agroforestry

unsustainable exploitation practices and other factors, including

In many developing countries (including LDCs), governments

Environmental and natural resource sustainability

level, of areas and populations most exposed to the degradation of land

Human development aspects

knowledge. A low level of human development (as measured by a

Education, training and extension

Population and health

overall population numbers will have major implications for food

The role of rural women in agricultural development

Information and communications

lack of basic telecommunications infrastructure. The information gap

Policies and institutions

Macroeconomic policy framework

been taken to remove distortionary barriers to the functioning of markets,

Thus, the major lesson that emerges from country experiences is

Agricultural and rural development institutions, infrastructure and

(ii) Rural financial services

rates. In addition, poor rural infrastructure and communication systems,

(iii) Availability of farm inputs