The transition from traditional, rural societies dominated by farm systems with low productivity toward more diversified, urban-centred societies with high productivity is a complex process. Within the structural transformation of an economy, the role of agricultural transformation is essential. Successes and failures along the path have serious consequences in terms of the social outcomes, environmental impacts, and the economic efficiency of the development process.
This report summarises government policies and public investments that have driven agricultural transformation in 117 countries in Africa, Asia, and Latin America between 1970 and 2015. Key findings of the report include:
- Agricultural transformation takes off when countries remove price policies that penalise agriculture.
- Public investment in research, extension services, electricity, and irrigation are important, but the quality of those services can matter more than the quantity.
- Land reforms, research institutions, and improving access to credit are also critical, but ultimately no country succeeds without a combination of policies and public investments that complement each other.