Developing rural economy for sustainable shared growth

By Shabiya Ali Ahlam

For the developing world, agriculture is a source of income for 86% of rural population and it employees 1.3 billion small holders. However, this is compromised by global food supplies, and the reduced availability of productive land and water resources along with the impact of climate change.

Agriculture key to eliminating poverty

Charing the session of developing rural economies for sustainable growth, Massey University New Zealand Deputy-Vice Chancellor Prof. Robert Anderson pointed out that 66% of the world agriculture takes place in the developing countries. It generates 20% of the GDP and employees 65% of the labour force.

Noting that agriculture remains pivotal for development systems to alleviate poverty, he said: “In the last two decades a reduction in investments in agriculture knowledge to support rural economies is observed. While one may say that the barriers to developing agriculture are social, educational, political, and economical issue, in reality it is none of those. But all those intertwined is what makes the issue.”

Sharing benefits of economic growth

Speaking from the view point of Africa, Malawi Vice President Khumbo Kachali said the region not only has an increasing gap between the rich and the poor, but has also a growing gap between the rural and the urban areas.  “Men and middle aged persons are well off relatively comparing to women and the young. It is my proposition that if we work together holistically to reduce the rural inequity, we could achieve higher national rates of poverty reduction,” he said.

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Kachali urged that the rural masses must begin to participate in the creating wealth and share the benefits of the economic growth. “Participation without benefits sharing will make growth unjust. We are now at across road. We can continue to do business as we usually do or we can form a different platform. Strengthen of partnership in the rural areas is necessary. For this I advocate the public-private partnerships where public resources are used to leverage private sector and small-scale operators,” he added.

Ingredients for rural development

Listing ingredients for rural development, Minister of Plantations Industries Mahinda Samarasinghe said it appears there are three significant elements that are interlinked. First is rural development. “By this I mean holistic development implemented in a systematic manner rather than a mere enhancement of incomes across geographical regions.”

He noted the second to be sustainability, which will allow the future generation to be able to continue to enjoy the fruits of current initiatives. The third Samarasinghe noted for rural development is shared growth where equity and equality should be there to enjoy economic development.

“Sri Lanka’s focus has been in all three elements, it has encapsulated in the ‘Mahinda Chinthana’ a 10-year vision that focuses on bringing benefits to the entire populations,” said Samarasinghe proudly.

Importance of infrastructure

JCB UK Director Philip Bouverat stressed that without infrastructure, healthcare and education would not happen.

“If you can’t feed you people because the crops are rotting before they reach the market because of a failing road network, there is a serious problem. This affects not only access to food, but also education and healthcare. At theend of the day, there is nothing like connectivity to improve things. Rural infrastructure is key for development,” emphasised Bouverat.

Focus on rural areas

Stressing on the importance of focusing on rural areas, Cleveland Bridge UK, CEO Brian Rogan said it is important to move technologies to the areas so that its population are benefitted. While the younger generation will be the most benefitting, he said: “The secret to success is to give the school-going children a chance to have a better world. And this applies universally. If the rural economy is developed, then you will find that the children will be better equipped to be successful.”

Echoing similar sentiments, Golden Grass Saudi Arabia Cahirman Dr. Turki Al Rasheed noted that agriculture investments has shown that it is the most effective way to enhance security and reduce poverty. “We need to invest more in rural areas, and help people to stay there. If they move to the city, life will be difficult for them,” he said.

To achieve rural development, Dr. Rasheed stressed that three key elements – food security, economic growth and poverty alleviation – should be given much emphasis.