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Fact 10: „Cross-country estimates show that GDP growth originating in agriculture is at least twice as effective in reducing poverty as GDP growth originating outside agriculture.“

The poorest 20 per cent of the population benefit most from agricultural GDP growth. For this group of people, the graph shows that an agricultural GDP growth of one per cent leads to an increase in expenditures for non-durable goods (products someone consumes immediately, such as food) of 4 to 6 per cent, whereas non-agricultural GDP growth is contributing only for one per cent higher expenditures and is even negative for the poorest five per cent of the population.

 

 

 

Graph explanation: Increase of expenditure (in %) on non-durable products (in %) induced by one per cent of agricultural GDP growth

 

 

 

 

 

 

 

Source: Ligon and Sadoulet 2007, taken from World Development Report 2008: 6

 

Source: World Development Report 2008: Agriculture for Development, The World Bank, Washington, URL: http://go.worldbank.org/