From Africa Recovery, Vol.11#2 (October 1997), page 8 (part of special feature on Agriculture in Africa)

LDCs must give higher priority to agriculture -- UNCTAD

Stronger economic growth in least developed countries (LDCs) will depend above all on more resolute steps to promote agricultural development, argues the UN Conference on Trade and Development (UNCTAD) in its Least Developed Countries 1997 Report, released on 24 September. Of the 48 countries classified as LDCs in the world, 33 are in Africa.

"Agriculture is the single most important sector in LDCs' economies," notes UNCTAD Secretary-General Rubens Ricupero. "Development of the agricultural sector offers most LDCs their best prospects for accelerating GDP growth rates and for boosting and diversifying their exports. Also, it can give a crucial boost to the nascent manufacturing sector, by expanding the internal market for consumer goods and providing raw materials for processing industries."

The report notes that Africa has made significant progress in reforming its agricultural pricing mechanisms since 1991, but emphasizes that pricing reforms by themselves are not sufficient to attain high and sustainable agricultural growth rates. For that, a range of other factors must also be assured, including appropriate agricultural technologies, efficient marketing systems, expanded access to credit, strengthened extension services and research facilities, and improved soil and water management. While the private sector may be able to play a key role in marketing and credit, the report adds, in other areas "governments must take the lead."

For the second year in a row, according to UNCTAD estimates, African LDCs registered relatively strong GDP growth rate, averaging 4.6 per cent in 1996. This was down from 5.4 per cent in 1995, but still well above the 1990-94 average of 2.9 per cent. Among the factors behind the high growth rate in 1996, according to the report, were "the positive impact of economic reforms, the devaluation of the CFA franc [in 1994] and more favourable weather for agriculture, especially in East and Southern Africa."

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