Employment multipliers from agricultural growth and poverty reduction

Poverty is still a major problem in Pakistan. (...) We have long known that agricultural growth is closely related to poverty reduction. Recent studies (...) provide massive statistical evidence of this relationship. Rural growth and agricultural growth have a major effect on poverty reduction; urban growth and manufacturing growth do not. (...) The poor in rural areas are heavily concentrated in the rural non-farm sector. (...) Thus, agriculture's massive impact on poverty is indirect, working through expenditures on the rural non-farm sector. (...) There must be increased expenditure on the agricultural research and extension systems and that expenditure must be subject to a few priorities and increased efficiency. The rural road and education systems need to be massively expanded. Much more emphasis needs to be placed on expansion of the high value horticultural sector for which Pakistan has a strong comparative advantage in international markets. (Pak Development Rev/DÜI)