WB calls for greater investment in agriculture

The World Bank (WB) on Friday stressed the need for greater investment in agriculture sector in Pakistan, a country where wheat and rice prices are hitting the pocketbooks of poorest citizens and high energy prices and increased water scarcity are squeezing the farmers.

Drawing from the "World Development Report 2008: Agriculture for Development" some leading agriculture experts of the WB have asked for increased investment in the agriculture of Asian countries including Pakistan, a region that houses over 600 million rural poor.

The report says over the past 20 years, agriculture in these developing countries has suffered a lot. Now, it warns, that the Millennium Development Goal (MDG) of halving extreme poverty by 2015 will not be met unless the governments in developing countries and the international community reverse the trend of underinvestment in agriculture and rural sectors.

In emerging countries such as Pakistan, India, China and Morocco, agriculture contributed an average 7 per cent to the Gross Domestic Product (GDP) between 1995 and 2005, though the sector accounts for 13 per cent of the economy and employs just over half the labour force.

The WB report says in many countries, slow growth in agriculture sector coupled with a rapidly growing non-agriculture sector has widened rural-urban income gaps creating social and economic tensions.

On the other hand, rapid growth of urban incomes and demand for higher-value products also provide significant opportunities for faster agriculture growth and poverty reduction in these countries.

Yusupha Crooks, WB's Country Director for Pakistan has stressed the relevance of the report for Pakistan. He said during the last one year, Pakistan had witnessed unprecedented increase in prices of key food commodities, which have profound effects on poor and vulnerable people.