Donor assistance to agriculture
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CTA. 1995. Donor assistance to agriculture. Spore 59. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/47159
Foreign assistance to agriculture: a win-win proposition
In some industrialized countries there are trends towards a reduction in foreign aid. Although such cuts will undoubtedly retard economic growth and social development in developing countries, donor governments inevitably evaluate their foreign aid programmes not only as altruistic activities, but also as political and economic investments. One reason for the decline in assistance to agriculture has been the opposition of farm pressure groups in donor countries. Many of these groups believed that agricultural assistance to developing countries would reduce their export opportunities. Foreign assistance to agriculture: a win-win proposition looks more closely at this assertion and shows that, contrary to expectation, agricultural assistance in the form of agricultural research expands developing-country imports from the world market. This occurs because agricultural research does more than increase agricultural production: the rise in agricultural production boosts incomes within and outside agriculture, and this increases demand for other goods and services. Assistance to agriculture therefore, provides opportunities for exports from donor countries to expand, not decline. At the same time, assistance contributes to economic development in the recipient country and regional prosperity. This report comes out of ongoing research by the International Food Policy Research Institute (IFPRI) on the important issue of aid to agriculture. Babara Rose IFPRI 1200 Seventeenth Street, N. W. Washington D.C. 20036-3006 USA