Agriculture, economic growth and poverty reduction

Does agriculture have a role to play in economic growth and poverty reduction? This paper considers the role of agriculture in Kenya. A brief discussion of the role of agriculture in economic growth and poverty reduction is provided and the performance of Kenya’s agricultural sector is discussed, focusing on both the policy and structural constraints that have impacted on agricultural performance.The author concludes that the agricultural sector has not received the attention and recognition it deserves in relation to the importance of its role in economic growth and poverty reduction. The author notes how:farmers are over-worked, getting little reward for their work with even the impersonal market system setting very low prices for farm producefarmers do not receive the full value for their effortsfarmers are not insulated or insured from the adverse effects of international markets or even the weathergood performance by the agricultural sector has the highest impact on poverty reduction, yet farmers are marginalised as compared to industrialists, professionals etcmany of the children who currently work on farms in Kenya and in other parts of Africa have dropped off from school or attend school irregularly, forced into work through povertyThe implications and recommendations made from these observations are that:as agriculture has an important role to play in poverty reduction, serious poverty reduction efforts must prioritise ways of improving agricultural productivityfree markets on their own would not serve farmers well as markets for agricultural goods and services are by nature imperfect, the role of government is important in complementing market functionspublic policy should focus on actions that reduce the transaction costs of engaging in agricultural activities