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Abstract: The purpose of this paper is to confront the notion of “decline” at the village level by illustrating a more immersive approach to sociological and demographic research within rural and remote communities. The research uses case studies of three villages in Australia, Canada, and Sweden, all of which have been labeled as “declining villages,” typified by population loss, an aging population, high rates of youth outmigration, and loss of businesses and services. This paper argues that focusing solely on quantitative indicators of demographic change provides a narrow view of rural village trajectories and ignores subtle processes of local adaptation that are hidden from quantitative data sets. Our research integrates quantitative data from the “outside” with qualitative data from the “inside,” including visual ethnography, to develop a more balanced perspective on how villages have been changing and what change could mean locally. These objectives are accomplished by revisiting a Dirt Research methodology applicable to a broad range of research into rural and remote villages. [ABSTRACT FROM AUTHOR]

Financial deepening is universally considered to be one of the vital means to trigger inclusive growth, in economies the world over, Tanzania being no exception. However, the lack of traditional collateral among the poor has made it virtually impossible for them to have access to financial services particularly in the formal financial institutions. It is in this context that the informal financial groups (IFGs) are so crucial in filling the financial inclusiveness gap among the poor in Tanzania. It is thus crucial that the efficacy of IFGs in improving the well‐being of the poor is assessed. It is in this context that the present study employs a quasi‐experiment mixed methodology to answer research questions. Findings have categorically shown that membership to IFGs has a positive and significant impact on various socio‐economic variables. Efforts to intensify education and training activities in IFGs, and their access to loans are some of the key recommendations that this paper suggests. It is hoped that the newly promulgated 2017 National Microfinance Policy shall be implemented to that effect. [ABSTRACT FROM AUTHOR]

Southeast Asia is a development success story. By 2025, it is forecast that extreme poverty in the region will have been ‘eradicated’. Does this mean that the challenges so evident in the 1960s when the countries of the region began to pursue development have been met, and the objectives achieved? The paper makes a case for thinking afresh about development and the poverty project, recognising that development is never neatly achieved but, rather, re‐worked, re‐engineered and re‐imagined over time. This is done through identifying different categories of ‘poor’, each produced through different poverty‐making processes, measured and viewed in different ways, and their poverty addressed using different approaches and policies. With specific reference to the cases of Laos and Thailand, and drawing on longitudinal research in the latter country, it is argued that while economic growth does trickle down, it trickles down in quite discrete and often contingent ways. Furthermore, there is always development work to be done, because development creates its own work. [ABSTRACT FROM AUTHOR]

This paper analyses patterns in regional inequality within and between Malaysia's 14 states, drawing upon estimates of Kuznets/Williamson curves, σ- and β-convergence and spatial spillovers. The path of regional inequality contradicts Kuznets predictions. Regional inequality initially fell but has subsequently risen with further economic development. While Malaysian governments have been successful at reducing poverty, they have been unable to curtail regional inequality in the long run. [ABSTRACT FROM AUTHOR]

In the last thirty years, remarkable achievements have been made in China's poverty reduction course. The dramatic fall in China's poor can be attributed mainly to a high rate of economic growth, government poverty reduction policies and targeted programmes and pro-poor macroeconomic and industrial policies. This paper focuses on China's poverty reduction policies and programmes and their impact on the poor regions and poor households. Lessons are drawn for poverty reduction and economic development in African countries. The paper also explores the potential for collaboration in poverty reduction between China and African countries and recommendations are made for the governments and donor agencies. [ABSTRACT FROM AUTHOR]

This paper investigates cultural dimensions and processes of exclusion in rural Ireland and Russia that impact upon marginalised rural people by making them poor. It employs Bourdieu and Passeron’s (1977) concept of cultural capital, which provides understanding of both structural effects of cultural discrimination and individual strategies of cultural reproduction on well-being. First, it explores the function of cultural capital as a power resource that can be used to monopolise certain cultural preferences. Second, the paper studies the function of cultural capital to mark cultural distance and to put people with less-valued cultural resources in a disadvantaged position that can limit poor people’s access to social settings and resources. Third, the paper investigates the function of cultural capital to exclude individuals by means of regulating their aspirations and cultural dispositions, which degrade social bonds and limit people’s sources of economic growth. The results of this study reveal the complexity of classificatory effects of cultural practices on poverty and argue against treating culture as a residual category in poverty studies. It takes on board the findings from this study to critically re-evaluate certain stereotypes of hardship and to articulate the need for a broader understanding of rural poverty. [ABSTRACT FROM AUTHOR]

In Africa's least developed countries (LDCs), escape from poverty and convergence to living standards of more advanced economies depends critically on structural transformation and the emergence of productive entrepreneurship that would accelerate growth and job creation. So far, however, subsistence agriculture has been the main source of employment in these countries, while a dynamic private sector in industry or high value-added services has remained elusive. Utilizing the flow approach to labor markets, this paper complements the empirical literature and numerous surveys on small and medium enterprise (SME) constraints and develops a theoretical framework that examines the main obstacles to entrepreneurship in Africa's LDCs. The paper posits that given the persistent frictions in product and labor markets as well as skill shortages that characterize these economies, development of productive entrepreneurship cannot be left to markets alone. The policy analysis suggests that the state has an important role to play. Well-targeted government interventions including training of potential entrepreneurs and workers can help to establish more modern and highly productive SME clusters that Africa's LDCs need. [ABSTRACT FROM AUTHOR]

In this paper we address the often sterile and circular debates over relationships between poverty and deforestation. These debates revolve around questions of whether forest loss causes poverty or poverty contributes to forest encroachment, and questions of whether it is loss of access to forests or dependence on forest-based livelihoods that cause poverty. We suggest that a way beyond the impasse is to set such debates within the context of agrarian change. Livelihoods of those who live in or near forests depend considerably on a rapidly changing agriculture, yet agrarian contexts receive only background attention in popular, political and academic discourse over poverty and forests. Moreover, to the extent that agriculture is considered, little heed is paid to social, technical and economic change. We therefore address agriculture's changing relationships with the wider economy, otherwise referred to as the agrarian transition, and with the natural resource base on which it depends. The paper draws on the experience of Thailand to illustrate our key argument, and more specifically addresses the situation on the resource periphery through a look at the agriculture-forest interface. [ABSTRACT FROM AUTHOR]

The paper uses the Poverty Analysis Macroeconomic Simulator (PAMS), a World Bank framework and updates its interface with the Cameroon government macroeconomic framework to analyze the potential impact of the implementation of the HIPC initiative on poverty alleviation. According to the main findings, it is very likely that Cameroon would succeed in achieving the poverty Millennium Development Goal. However, this result would be feasible if and only if the Poverty Reduction Strategy Paper (PRSP) is fully implemented. That is not very certain because of the failure already observed during the first year of PRSP implementation. [ABSTRACT FROM AUTHOR]

This paper examines the trend, constraints, promotion, and prospects of investment – domestic investment, foreign direct investment, and private portfolio investment – in Africa. After identifying the importance of investment in Africa's economic development, it was shown that all forms of investment are low in Africa and hence inadequate for the attainment of the MDGs and poverty reduction in the continent. The constraining factors include: low resources mobilization; high degree of uncertainty; poor governance, corruption, and low human capital development; unfavorable regulatory environment and poor infrastructure, small individual country sizes; high dependence on primary commodities exports and increased competition; poor image abroad; shortage of foreign exchange and the burden of huge domestic and external debt; and undeveloped capital markets, their high volatility, and home bias by foreign investors. The paper recommends that successful promotion of both domestic, foreign direct and portfolio investment in Africa will require actions and measures at the national, regional, and international levels. It concludes that the prospects are bright. New and attractive investment opportunities are emerging in infrastructure, particularly as most African countries now encourage public/private partnerships for investments in this sector. In addition to privatization, renewed interest within Africa in undertaking regionally based projects and joint exploitation of natural resources is creating other investment opportunities. Apart from the fact that investment in Africa yields the highest returns, investment risk in the continent is declining. In addition, much progress has been made in recent years to improve the investment climate in Africa. All this is of course is not to deny that obstacles do remain hence economic reforms to enhance domestic investment would need to be complemented by measures to attract increased foreign capital. Critical in such endeavors must be efforts to improve governance in some countries as well as to eliminate socio-political violence in others and development of domestic capital markets, while government institutions must be modernized and upgraded. [ABSTRACT FROM AUTHOR]

This paper demonstrates that recent protests in Bolivia must be linked to the failure of efforts to improve democratic participation in the country. It argues that such failures can be traced to a history of prejudices in national development and society and persistent biases and contradictions within international development policy and institutions. Despite these obstacles, the paper concludes that ideas for appropriate development and realistic alternatives for change to government and democracy are visible in recent critical development thinking and amongst the different social and cultural groupings involved in the demonstrations. [ABSTRACT FROM AUTHOR]

The paper uses a simple macroeconomic model to estimate the impact of debt relief and terms of trade shocks on growth and poverty in African countries. For the 18 heavily indebted poor countries (HIPCs) that reached the enhanced HIPC decision point by end-December 2000, the basic quantitative findings are that HIPC debt relief has boosted economic growth in these countries by an average of 2.9 percent per annum and that the computed result of this increase in growth is a reduction in poverty by an average of 2.2 percent per annum. However, the paper shows that recent deteriorations in the terms of trade have counter-balanced these positive effects by lowering growth by an average of 2.0 percent per annum and by increasing poverty by an average of 1.3 percent per annum. Clearly, much of the positive impact emanating from the HIPC Initiative has been eroded due to recent deteriorations in the terms of trade. The paper also estimates the net effect on growth and poverty of the recently agreed 100 percent multilateral debt relief. This is predicted to boost economic growth by an average of 5 percent per annum and reduce poverty by about 5.3 percent per annum for the group of all African HIPCs. The paper concludes that 100 percent debt relief is crucial for Africa, but that more aid and policies need to be focused on a long-term development strategy that fosters the necessary structural transformation. [ABSTRACT FROM AUTHOR]

This paper, based on fieldwork results, explores traditional management systems (TMS) in the arid zone fisheries of north-eastern Nigeria with particular reference to their impact on rural poverty. The first section provides a historical background by tracing the evolution of the TMS since the nineteenth century, with reference to government policy on fisheries management and poverty alleviation. The second gives an overview of TMS, including definitions, distribution, principal objectives, regulatory mechanisms and the impact of TMS on the performance of the fisheries and on the livelihoods of rural people. The third considers the perceptions and attitudes of the fishing communities with regards to the fisheries and TMS. The paper concludes, paradoxically, that while TMS provide a basis for the sustainable livelihoods of many fishing people, they also reflect and enforce the social positions of the rich and powerful members of society who oversee them, at the expense of the poor. In the future, poverty alleviation in fisheries will need to incorporate both sectoral and non-sectoral strategies– dealing with the existing‘paradox of TMS’ by encouraging appropriate institutional changes and community development, and recognizing the importance of employment creation in other sectors of the economy as a source of alternative income. [ABSTRACT FROM AUTHOR]

After brief discussion of the general losses refugees incur in connection with displacement, the paper examines empirically the structural and institutional factors that discourage refugees from taking initiatives to recoup their losses and to construct sustainable livelihoods in countries of asylum, as well as the conditions that perpetuate poverty, vulnerability, and marginalisation. The paper argues that in developing countries refugee status, regardless of duration, leads to the acquisition of neither nationality nor denizenship. Basic rights and sources of livelihoods are apportioned on the basis of nationality and not residence. Lack of belonging to a spatially bounded community or geo-political state entity is therefore the single most important factor that prevents formulation and implementation of long-term development programmes. [ABSTRACT FROM AUTHOR]

This paper discusses the impact off fifteen years of economic and social change on income inequality and poverty in New Zealand. The paper considers how a consensual poverty line was established through the use of a series of focus groups. This leads into a discussion on who was poor in 1998. Problems in measuring trends in the incidence and severity of poverty during a period when economic growth is absent and the income distribution is widening are then analysed. The discussion briefly incorporates current New Zealand debates on benefit dependency, intergenerational transmission of poverty and social exclusion. [ABSTRACT FROM AUTHOR]

Unanticipated events can cause considerable economic hardship for poor rural households. Some types of negative shocks, for example weather-related agricultural losses and vector-borne diseases, are expected to occur more frequently as a result of climate change. In this paper we measure the role of household- and location-specific characteristics in conditioning behavioural responses to a wide range of idiosyncratic and covariate shocks. We use data from 8,000 rural households in 25 developing countries, compiled in the global database of the Poverty Environment Network. We employ a hierarchical multinomial logit model to identify the importance of characteristics observed at different levels of aggregation on a set of strategies aimed at coping with economic shocks. Results indicate that in response to idiosyncratic shocks, households tend to deplete financial and durable assets, whereas covariate and thus often climate-related shocks predominantly result in reduced consumption. Households in sites characterised by high asset wealth tend to cope with shocks in a more proactive way than those in sites with average or below average asset wealth, but the role of asset types in conditioning shock responses varies across regions. Our findings have implications for rural development and climate change adaptation strategies. [ABSTRACT FROM AUTHOR]

This paper presents a novel analysis about the capabilities of academic researchers and academic poverty. Adopting the capability approach, which Amartya Sen developed to address concerns such as poverty, inequality and development, we shift the focus of analysis and discussion around evaluating academic research and academics in the social sciences from measures of so-called 'quality', 'impact' or 'excellence' to the capabilities of academics. For us, the conceptualization and evaluation of academic research is a question about what academics have reasons to value, and about their ability to achieve valuable beings and doings. It is also about determining what might constitute academic poverty, and what academics are required to do in order to avoid that poverty. Relating our analysis to debates around universities, in particular about quasi-market pressures, we identify the possibility of basic capabilities in academic research, namely: the capabilities that are necessary to fulfill basic academic needs. Our proposition is that there is academic poverty when an academic researcher is not capable of fulfilling basic academic needs, such as: adhering to standards of coherence, robustness and rigour; searching for and disseminating the spirit of the truth. Moreover, if the academic has the capabilities to fulfill those basic academic needs and yet chooses not to do so, she renders herself in a state akin to academic poverty. [ABSTRACT FROM AUTHOR]

Social protection has emerged as a key driver of development policy at the beginning of the twenty-first century. It is widely considered a 'good thing' that has the potential not only to alleviate poverty and vulnerability, but also to generate more transformative outcomes in terms of empowerment and social justice. Based on an ethnographic study of the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act ( MGNREGA), India's flagship social protection policy, this paper takes a critical look at what this policy's 'success' consists of. The study was carried out in Tamil Nadu, a state widely presented as a 'success' in terms of MGNREGA's implementation, and describes who participates in the scheme and how success is understood and expressed at different social and bureaucratic levels. In terms of MGNREGA's outcomes, we conclude that the scheme is benefitting the poorest households - and Dalits and women in particular - especially in terms of providing a safety net and as a tool for poverty alleviation. But the scheme does more than that. It has also produced significant transformative outcomes for rural labourers, such as pushing up rural wage levels, enhancing low-caste workers' bargaining power in the labour market and reducing their dependency on high-caste employers. These benefits are not only substantial but also transformative in that they affect rural relations of production and contribute to the empowerment of the rural labouring poor. However, in terms of creating durable assets and promoting grassroots democracy, the scheme's outcomes are much less encouraging. [ABSTRACT FROM AUTHOR]

In this paper, we have presented the patterns of inequality, growth and income inequality in the MENA region. Using a cross-sectional time series data of MENA countries for the period 1985-2009, we have also investigated the effect of income inequality on key societal development, namely economic growth and poverty, in the region. Our empirical results show that income inequality reduces economic growth and increases poverty in the region. Other factors having significant negative effect on economic growth in the MENA region include previous growth rate, exchange rate, government consumption expenditure or government burden, initial per capita GDP, inflation and primary education. On the other hand, variables positively and significantly associated with MENA's economic growth are domestic investment rate, urbanization, infrastructure development, and mineral rent as a percentage of GDP. In addition, apart from income inequality, other factors increasing poverty in the region are foreign direct investment, population growth, inflation rate, and the attainment of only primary education. Poverty-reducing variables in the region include domestic investment, trade openness, exchange rate, income per capita, and oil rents as a percentage of GDP. [ABSTRACT FROM AUTHOR]

The idea to find out if economic growth is pro-poor in Niger comes from the observation that despite good macroeconomic performance during the 2000s, poverty remains high. In this paper, two objectives are pursued. First, using an approach based on Kakwani et al. (2002), pro-poor growth is examined according to regional characteristics and place of residence. From the results obtained, it appears that overall economic growth is pro-poor Nigerien, except in cities (including Niamey) where growth seems to be pro-rich - the negative interference of inequality more than offset the positive effect of growth. Second, a simulation exercise is proposed to estimate the level of growth required to reduce poverty by 50 per cent, consistent with the objectives of the Millennium Development Goals. The study shows that Niger cannot achieve such a goal by maintaining a growth rate of 10.5 per cent, and only in 2020. [ABSTRACT FROM AUTHOR]

This paper analyses poverty and calorific undernourishment in the Indian state of Gujarat, where high and market-led industrial growth has resulted in rapid economic improvement. The study is carried out through a combination of secondary and survey-based data. We conclude that the neoliberal agenda of uncontrolled, outward-looking growth has not resulted in significant reduction of poverty or malnourishment in rural areas. Furthermore, while land ownership is officially used as a proxy for wealth distribution, class position appears a better predictor of poverty status in the rural areas than landownership per se. At the policy level, there is a need to revive the agrarian economy and create new non-agricultural assets, and the primary focus in the state must shift to the distribution of created assets rather than a single-minded focus on growth. [ABSTRACT FROM AUTHOR]

International labour migration is a multidimensional process and primarily a family mechanism intended to reduce vulnerabilities associated with underlying inequalities. However, for immigrants, the break-up of physical contact with family members is an enduring feature of vulnerability in their communication with origins (often in developing countries). On the whole, family relationships are transformed: the absence of physical contact is traded-off with remittances sent home to family members. Remittances create potential for resilience by increasing human development of children, while reducing extreme poverty at the local level. Remittance flows are also an important source of foreign exchange for countries of origin. However, labour markets' polarization, backlash, and economic downturns at destinations (often in developed countries), and governments' moral hazard, currency revaluation, and production inertia at origins recreate vulnerabilities and disrupt the potential build-up of resilience. In fact, the re-creation of vulnerabilities largely outweighs the generation of resilience threads. The paper develops a typology that highlights the dynamic interaction between vulnerabilities and resilience, revealing the multiple aspects of people and remittances flows, the potential for mainstreaming migration policies into economic development, and the scale of the policy task to reduce vulnerabilities associated to international labour migration. [ABSTRACT FROM AUTHOR]

This paper presents a brief account of welfare changes in Zimbabwe along the income and education dimensions between 1995 and 2003. Using sequential dominance procedures, we find that education attainment substantially improved over time. However, these gains did not necessarily translate into poverty reduction, rather welfare over the joint distribution of income and education dramatically deteriorated. These results are robust for all education partitions, income thresholds and a broad class of welfare indices. A further inquiry into the factors underlying this apparent disconnection between education and income using decomposition techniques reveals that the increase in poverty incidence cannot be attributed to household characteristics but is reflective of the broader socio-economic trends prevailing at the time. The decline in economic growth contributed tremendously to the decline in welfare while inequality changes account for a small proportion. [ABSTRACT FROM AUTHOR]

This paper shows that an important requirement of the MIRAB model, economic success in the host country, is a characteristic of Pacific Islander migrants to the USA and their offspring. Pacific Islanders improved their economic lot in the 1980s and again in the 1990s. Part of this improvement was due to increases in their human capital: Pacific Islanders acquired more education, work experience and better English language skills. This upgrading allowed more workers to acquire white-collar jobs and to increase their earnings. [ABSTRACT FROM AUTHOR]

In the late 1960s, Harold Brookfield and Doreen Hart were ‘startled’ by the order of magnitude differences in incomes from village cash cropping in different parts of Papua New Guinea (PNG). This paper traces these differences, back into a pre-colonial past and forward to the present and concludes, as Brookfield did in the 1960s, that severe environmental constraints, rather than market forces, are the primary cause of the pattern of spatial inequalities observable in PNG. Brookfield noted the existence of an ‘acute dilemma’ in 1960s development funding: should funds be invested where the returns will be highest, or where the need is greatest. This dilemma is as acute today as it was then. However, in the meantime, people from poor places are moving to better-off places, seeking access to markets for their produce and health and education services for their families. [ABSTRACT FROM AUTHOR]

This paper focuses on the relationship between poverty and human rights, with particular emphasis on situations where issues of ethnicity and discrimination are present. Hitherto, the relationship between poverty and human rights has not been clearly understood and little empirical research is available on the matter. As a result, seemingly sharply contrasted perspectives continue to exist. The prevailing view in economic development is that poverty alleviation programmes are so diverse and encompassing that it will be via poverty alleviation programmes that human rights will be fulfilled. However, in the human rights community, the prevailing view is that violations of human rights are a major cause of poverty and, as a corollary, to deny people their rights is, by definition, a way to keep them poor. In fact, both approaches hold substantive truth and value added. Human rights should be regarded as a human endowment, and thus as a form of capital. They are, to that extent, as important as all the other forms of capital that participate in the development process and in the process of poverty alleviation. To disregard the importance of human rights is tantamount to keeping people in poverty. [ABSTRACT FROM AUTHOR]

If entrepreneurs are society's innovators, what is the role of businesspeople in poor countries — particularly, the ‘micro’ businesspeople that make up the majority? What hope for decreasing poverty and improving livelihoods do microbusinesses offer? In particular, what is the role of women microentrepreneurs, whose incomes have been understood to contribute a great deal to the well-being of poor households? This paper is based on case studies collected in the late 1990s in Sucre, Bolivia, a context in which many women are the owners of independent microenterprises. Women in Sucre control a range of microenterprises in the commerce, production and service sectors and are recognized as businesspeople by their spouses, families and people in their community. Under such conditions of ‘empowered’ business ownership, what is the potential of these businesses to decrease poverty? The study explores the business experiences of women microentrepreneurs, their priorities, entrepreneurial abilities and the obstacles they face. It suggests the kinds of business activities which women in Sucre are most likely to undertake and the income levels which these activities generally attract. Finally, it indicates that, while women in Sucre can control resources and take advantage of opportunities as businesswomen, other constraints mean that most women's businesses have only a limited ability to decrease poverty. ‘Microenterprise development’ alone is insufficient to address the complex relationships affecting how these women and their households access resources. [ABSTRACT FROM AUTHOR]

Are the independent economic activities of poor people “petty commodity production”—an informal way to earn a subsistence wage? Or are they “microentrepreneurship”, a launching point for capital accumulation and growth? This paper draws on fieldwork in Bolivia, Peru and Guatemala, focusing specifically on the poorest businesses. In–depth interviews indicate that even the smallest–scale producers, merchants and service providers have goals of “improving” their business and “growing” their capital, not unlike their capitalist counterparts. Yet, while growth is desirable, maintaining one’s business as a steady source of income is a sufficient achievement for many. Poor self–employed people are both “labourers” and “entrepreneurs”; the key macro–level question becomes, not “Do petty–commodity producers have different goals than capitalist entrepreneurs”, but “What resources are lacking, and what obstacles exist, that keep many microentrepreneurs in low–yield activities, with little opportunity to grow their resources?”. [ABSTRACT FROM AUTHOR]

Since 1994 South Africa's macroeconomic strategy has sought to accommodate the forces of globalisation and ensure the country's re-entry into the global economy after two decades (1970-90) of relative international economic isolation. One key component of restructuring for globalisation has been a shift in the burden of responsibility for economic development from national to local government level and of the promotion of local economic development (LED) planning across post-apartheid South Africa. This paper focuses on the issue of LED planning in South Africa as a case study in the local consequences and reactions to globalisation of city regions in the global periphery. The planning of LED in South Africa incorporates international trends towards local promotion of economic growth but also includes a distinct and strong focus on poverty alleviation to deal with the apartheid legacy. [ABSTRACT FROM AUTHOR]

This article addresses central issues related to population policy and economic development. Poverty and prosperity are normally marked by boundaries. These boundaries are also the borders of countries. The familiar exchange-rate comparisons of per capita incomes often overstate international differences in standards of living, but even the best available purchasing-power-parity statistics give the richest countries per capita incomes 10 and 20 times as great as the poorest countries. The statistics also suggest that migrants from poor to rich countries normally obtain great increases in wage rates, and the persistence of the migration confirms that these increases are not statistical illusions. It was shown in this paper that the coincidences of the demarcations of poverty and prosperity with national borders, and the experiences of migrants crossing these borders, offer insights for both economists and demographers, and indeed for anyone who is anxious to alleviate poverty and hasten the progress of the less developed countries. A fresh perspective on the population problem can be achieved and even begin to uncover the key to economic development, by asking how well migration and the great differences in per capita incomes across countries are explained by diminishing returns.

Despite rapid economic growth and massive inflows of aid, rural poverty in Mozambique is worsening. Agricultural production and productivity have not increased in the last decade. Use of chemical fertilizers and other modern technology is at a low level and decreasing. The present development model emphasizes that the role of government and donors is to provide human capital and infrastructure, while the private sector is responsible for economic development and ending poverty. The most recent national surveys confirm what is being seen elsewhere in Africa - that this non-interventionist strategy does not raise agricultural productivity or reduce poverty. While 80 per cent of Mozambique's population is engaged in agriculture, this sector contributes only 20 per cent of GDP. This suggests that investments in agriculture are likely to generate pro-poor growth, both to rural and urban dwellers. This policy failure is increasingly recognized, but donors and government have invested too much political capital in the current policy to change easily. [ABSTRACT FROM AUTHOR]