870301 - ApEc 8703 Microeconomic Analysis of Economic Development Lecture 1 Overview of Agriculture in Developing Countries I Introduction Agriculture

870301 - ApEc 8703 Microeconomic Analysis of Economic...

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1 ApEc 8703 Microeconomic Analysis of Economic Development Lecture 1: Overview of Agriculture in Developing Countries I. Introduction Agriculture plays a key role in development because: 1. Most people in developing countries live in rural areas, although the percentage is slowly falling: 1990 2006 Low Income 75% 70% Middle Income 56% 46% Low and Middle Income 63% 56% 2. Poverty rates are higher in rural areas than in urban areas, which implies that most of the poor live in rural areas (examples, using national poverty lines): Country Year Urban Poverty Rural Poverty Brazil 2002-03 18% 41% China 1998 < 2% 5% India 1999-2000 25% 30% Nigeria 1992-93 30% 36%
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