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This book explores the place of poor people within a rich variety of value chains, focusing upon lagging, rural regions in Africa and Asia, and how they can'upgrade'within such chains. Upgrading is a key concept for value chain analysis and refers to the acquisition of technological capabilities and market linkages that enable firms to improve their competitiveness and move into higher-value activities.The authors examine a range of evidence to assess whether the'bottom billion'people, living mainly in the rural areas of low-income countries, can improve their position through productive strategies and, if so, how? They propose an innovative conceptual framework of value chain upgrading for some of the most marginal producers in the poorest local economies. They demonstrate how interventions can improve poverty and the environment for poor people supplying a wide range of services and agricultural and food products to local, regional and global markets. This analysis is based on empirical research conducted in Senegal, Mali, Tanzania, India, Nepal, Philippines and Vietnam. The main focus is on poverty, environment and gender outcomes of upgrading interventions, and represents one of the key challenges of contemporary development economics.

Less-favoured areas with limited agricultural potential or difficult access conditions, support 40 percent of the world's rural population suffering from chronic poverty. While agricultural innovations and rural development programs have begun to be implemented within developing countries, they do not address the specific obstacles faced by this large population. Instead, a targeted approach is needed to identify different resource management strategies for particular types of households and communities as well as creating balanced investments aimed at sustainable intensification of rural livelihoods. Such efforts have been the focus of the research program on Regional Food Security Policies for Natural Resource Management and Sustainable Economies (RESPONSE). Through the study of less-favoured areas in Africa, Latin America, and South and East Asia, development pathways allowing for the careful adjustment of resource use strategies at the field, farm-household and village level are explored.

Reviews causes of poverty in rural areas and presents a policy framework for reducing rural poverty, including through land reform, public works programs, access to credit, physical and social infrastructure, subsidies, and transfer of technology. Identifies key elements for drafting a policy to reduce rural poverty.