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Research Report

True Contribution of Agriculture to Economic Growth and Poverty Reduction:: Malawi, Mozambique and Zambia Synthesis Report

Firmino G. Mucavele
Copyright Date: Jan. 1, 2009
Pages: 22

Table of Contents

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  1. (pp. None)
  2. (pp. 2-2)
  3. (pp. 3-6)
  4. (pp. 7-8)

    Agriculture continues to be a fundamental instrument for sustainable development and poverty reduction in Malawi, Mozambique and Zambia. To achieve economic growth through agriculture there is the need for the:

    1. Introduction of more sustainable production systems;

    2. Innovative policy initiatives and strong political commitment; and

    3. Improvement in local, national and global governance

    From 31st August to 4th September 2009, 226 participants from 4 continents and 28 countries assembled in Maputo, Mozambique for the 9th Annual Food Agriculture and Natural Resources Policy Analysis Network (FANRPAN) policy dialogue, which addressed the theme of “Agriculture’s True Contribution to the Economic Development of Southern Africa”....

  5. (pp. 8-17)

    Agriculture in Malawi plays an overwhelmingly important role in the economy. In the 2004 Malawi Economic Growth Strategy it is stated to account for 39% of Growth Domestic Product (GDP), 85% of the labour force and 83% of foreign exchange earnings. In 2010, the Malawi Confederation of Chambers of Commerce (MCCCI) states that agriculture is the mainstay of Malawi’s economy and it contributes about 33.6 percent to the economic growth.

    The GDP originating from agriculture is at least twice as effective in reducing poverty as GDP growth originating from outside agriculture. GDP growth from agriculture impacts upon the majority of...

  6. (pp. 17-18)

    Traditional methodology ignores the growing demand for agricultural and environmental goods. To evaluate the true contributions’ of agriculture to the economic growth, account must be taken of agriculture’s effects on income distribution among rural and urban dwellers.

    The use of Social Accounting Matrices (SAMs) make it possible to examine the structural links between production, consumption, trade and the accumulation and distribution of income. This approach is necessary to take advantage of the backward and forward linkages that are key elements in the realization of the real value of agriculture.

    To facilitate building trust in agriculture industry, there must be accountability...

  7. (pp. 19-22)