Document Type : Review Article
Islamic Azad University, Qaemshahr Branch, Qaemshahr, Iran
Agriculture has a key role to play in reducing poverty and hunger in many developing countries. About 75% of the world's poor live in rural areas and most are dependent on agriculture and related activities in the rural economy. For this reason the benefits for developing countries’ farmers have been shown to be substantial if OECD member countries reformed their agricultural policies. The issue of how OECD members’ agricultural policies join-up with their development commitments and policies requires decision makers’ undivided attention as the UN General Assembly meets to review progress in meeting the Millennium Development Goals and as trade negotiations progress under the Doha Development Round. At the global level the dependence of the developing world on agricultural exports creates many problems. World demand for these products tends to be both income and price inelastic. As a result, for many crops, of which the supply is also inelastic in the short-run, the growth rate of export earnings is held to a relatively low level and prices fluctuate. Efforts at diversification and commodity stabilization can be successful only if undertaken under viable international agreements. Empirical evidence on the terms of trade of the developing vis-à-vis the developed country leaves at least a presumption that they are not improving. This paper has reviewed the economic and management literature related to the role of agriculture in development.
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