Socio-economic Assessment of Legume Production, Farmer Technology Choice,Market Linkages, Institutions and Poverty in Rural Ethiopia: Institutions, Markets, Policy and Impacts Research Report No. 3

Abstract

Today, about 1.1 billion people continue to live in extreme poverty on less than US$1 a day. Another 1.6 billion live on between US$1–2 per day. Three out of four poor people in developing countries lived in rural areas in 2002 (WDR 2008). Most depend on agriculture for their livelihoods, directly or indirectly. In much of sub-Saharan Africa, agriculture offers a promising opportunity for spurring growth, overcoming poverty, and enhancing food security. Of the total population of sub-Saharan Africa in 2003, 66% lived in rural areas. More than 90% of rural people in these regions depend on agriculture for their livelihoods. Ryan and Spencer (2001) estimated that three-quarters of the 1.3 billion people living below the poverty line in developing countries lived in rural areas. Of these, an estimated 66% relied on marginal lands (TAC 1997). Broad-based agricultural development through improving the productivity, profi tability and sustainability of smallholder farming is the main pathway out of poverty for millions of poor farm households. Agricultural productivity growth is also vital for stimulating growth in other sectors of the economy. But accelerated growth requires a sharp productivity increase in smallholder farming combined with more effective support to the millions coping as subsistence farmers, many of them in marginal areas. Gallup and Sachs (2000) estimated that, in comparison to temperate regions, productivity was 27% lower in the humid tropics and 42% lower in the dry tropics