Agriculture and Rural Development Highlights from Day 1

High-level Seminar for Policy Makers: Broad-based Development

through Economic Transformation and Job Creation

9-11 February 2011Maputo, Mozambique

Program outline1. Role of agriculture in economic development;

Role of agriculture in Mozambique

2. Success stories: Brazil and China

3. Use of value chain analysis to determine potential competitiveness of agriculture

4. Selected key topics: Technology and land

5. Wrap-up

Role of agriculture

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Employment and Output Shares for Agriculture

GDP Share, Africa GDP Share, Non-Africa Employment Share, Africa

Employment Share, Non-Africa

Real per capita GDP, 2000 (PWT)

Mozambique

Key messagesAgricultural development is important and cannot be “skipped”!

A number of countries with agro-climatic circumstances and factor endowments similar to Mozambique have succeeded in getting agriculture going.

Common aspects of their experiences:• Clear long-term vision of where agriculture is headed• Workable strategy for getting there, based on empirical evidence• Full engagement of key actors (many ministries, private sector)• Strong political will and sustained commitment • Resources• Accountability

Relevance for MozambiqueWhat must be the key elements of a long-term vision for agricultural development in Mozambique?

• High rate of productivity growth• Employment intensive• Generator of export revenues

Initial emphasis on food staples

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer• Human capital

0

500

1,000

1,500

2,000

2,500

1974 1980 1990 2000 2010

BS MS PhD

EMBRAPA research staff

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer• Human capital• Property rights (land)

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer• Human capital• Property rights (land)• Infrastructure (roads, power)

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer• Human capital• Property rights (land)• Infrastructure (roads, power)• Mechanization

Key question for policy makersWhat are the high-payoff opportunities for stimulating high rate of employment-intensive productivity growth?

Critical elements:• Research and development• Technology transfer• Human capital• Property rights (land)• Infrastructure (roads, power)• Rural finance• Price incentives

Relevance for Mozambique

What must be the key elements of a long-term vision for agricultural development in Mozambique?

• High rate of productivity growth• Employment intensive• Generator of export revenues