Support for agriculture during economic transformation: Impacts on poverty and undernutrition

This paper explores trends in poverty and nutrition during economic transformation and especially the impacts linked to government support for agriculture during the process. Analysis of multiyear data for 29 developing countries confirms that structural transformation raises total income and that poverty falls faster with strong support for agriculture. In turn, poverty reduction supports improved nutrition, especially in rural areas. However, transformation brings problems through health risks associated with rising obesity in rural as well as urban areas. Thus, the transition process must be managed better, through targeted support for smallholder agriculture and health interventions, if the negative consequences of obesity and chronic disease are to be mitigated.