Transformations in Agriculture and their Implications for Rural Development

The paper reviews the implications for rural development of current transformations in agriculture. It first identifies some of the driving forces - in addition to the impact of rising incomes in some but not all developing countries - behind the transformation process: changing market chains, shifts in public policy, OECD agricultural policies and HIV/AIDS. It then discusses some strategic issues for assisting the rural sector and small farms in developing countries: increasing the productivity of food staples, diversification into higher value products, organizing small farmer for marketing, agricultural services, non-farm opportunities and migration and targeting the vulnerable. It emphasizes the need for integrated interventions if small farm development is to offer a viable pro-poor option for agricultural development.