More than one-half of the world's extreme poor depend mainly on farming or farm labor for their livelihoods. Findings of the Report Cutting world poverty in half requires a focus on reviving agricultural development and responding to the needs of rural populations. Influence within and over decision-making institutions that have often served them badly in the past is also critical. Allocating resources to the rural and the poor will not compromise economic growth. Since the economies of developing countries and their labor supplies are overwhelmingly dependent on the agricultural sector, such investments can only accelerate growth.
Capital is always scarce in low-income countries.
Developing countries have high ratios of labor to capital. Therefore, they can gain more from market liberalization if they encourage labor-intensive production. Since poverty has many dimensions, efforts to reduce it must be multi-targeted. First, food staples retain a critical role in the livelihoods of the rural poor. Those in extreme poverty spend most of their time growing staples and usually get 70-80 per cent of calories from them.