Rural development

Facts Background Australia's response The global agenda Facts The majority of the world's poor live in rural areas, and are disproportionately dependent on natural resources for their livelihoods, particularly resources such as soil, forests and fish. In 2000, 53% of the world's 6.1 billion people lived in rural areas, a figure that is expected to drop to 40% by 2030. To meet future demands, the world's farmers will have to produce 40% more grain in 2020 than in 1999. Most of this will have to come from yield increases on existing land. More than 30 million of the world's 240 million irrigated hectares have been severely damaged by the build-up of salt, and a further 80 million hectares are affected by a combination of salinisation and water-logging. Consistency of grain supply is a major global problem. 2003 saw the largest ever shortfall in world grain production - 105 million tonnes - bringing stocks to their lowest level in 30 years and allowing for only 59 days of consumption. In 2003, 67.7 million hectares of genetically modified crops were planted globally - a 15% increase on the previous year - involving nearly 7 million farmers in 18 countries. The number of tractors in most developed countries in 2001was 895 per 1,000 farmers while, in the least developed countries was four tractors per 1,000 farmers. Sources Food and Agriculture Organisation (FAO): http://www.fao.org United Nations: http://www.un.org/esa/population International Service for the Acquisition of Agri-biotech Applications (ISAAA) http://www.isaaa.org World Bank: http://www.worldbank.org Background Living in rural areas The livelihoods of people living in rural areas are strongly dependent on the natural resources of water, soil, and forests, as they earn their living from farming, forestry, mining, tourism, or related service industries. Rural populations include a wide range of people, from wealthy land owners to subsistence farmers, landless labourers, women-headed households and minority groups pushed onto cheap, marginal land. The majority of the world's poorest people live in rural areas and have little in reserve when droughts, floods or plagues of pests destroy crops and livestock, seasonal factors mean there is no work, or international financial fluctuations drastically reduce income for the same physically demanding workload. Rural people tend to suffer from poorer health, have higher illiteracy rates and earn less than city dwellers. Cities are attracting many people from rural areas in search of a better standard of living. The movement to the cities impacts strongly on rural family and community life. Fewer workers increases the work load and number of roles of remaining people. Water and sustainable farming A growing population creates markets for increased agricultural production, but increased production depends on climate and the sustainable use of water and soil. Addressing the difficulties of variable rainfall through dams, groundwater and irrigation needs to be balanced with protecting land from salinity and soil from becoming water logged and reduced availability of water for other uses. The pressure to produce more food has led to damaging farming practices.The application of fertilisers, while at first producing greater crop yields, can lead to environmental and health problems. Clearing forests for farmland can cause erosion as soil with low fertility is exposed. There are increasing efforts to develop sustainable farming methods that have regard for the environment, profitability and social equity. Infrastructure People living in rural areas generally have less access to services such as electricity, health care, water and sanitation, communication, education and roads because governments and the private sector concentrate on meeting the needs of the more populous urban areas which promise greater cost efficiencies. Improved infrastructure can have a great impact on rural development - a sealed road can mean faster access to markets; a power line can mean access to labour-saving technology; a wireless transmitter can link the most isolated areas with the World Wide Web; financial services can strengthen investment for income generation and reduce financial risks; a local school with well-trained teachers can improve rural people's ability to apply new technologies and knowledge; improved water sources, sanitation and health care can reduce illness and enhance people's ability to work. Policy reforms National policy reforms are often necessary in order to address inequities - insecure land tenure means poor farmers are unlikely to invest in improving farms ,which in turn limits their ability to increase their income; women who are left to head up family farms may not be eligible for the income because the farm is considered their husband's property; local governments may not have the resources, will, skills or mandate to make effective changes. International trade policy must be changed to assist developing countries - trade barriers favour agriculture in wealthy countries and limit market access; fluctuations in world commodity prices have drastic effects on poor farmers. A strong rural economy, accompanied by the right policy settings, will boost national economic growth and reduce rural poverty. National economic growth can lead to greater investment in manufacturing and services, resulting in further growth. Australia's response The Australian government's overseas aid program for rural development aims to reduce poverty by increasing opportunities for the poor (with a focus on women and minority groups) through income generation and the provision of basic needs and services. Education, governance, health and infrastructure activities and trade reform are all part of the program's strategy. The income generation strategy has three components: Increasing productivity in the agricultural sector - improving quality and quantity of farm produce, diversifying agricultural production, promoting open trade Stimulating non-farm employment in rural areas - assisting the development of small and medium-sized enterprises, providing advisory services, building capacity and providing training Managing natural resources sustainably - targeting areas with poor resources, enhancing environmental sustainability in water, chemical inputs and property rights, supporting forestry and fishery practices Some examples of projects include: increasing the quantity and quality of rice production by reducing waste through improved milling and promoting diversification in farm production in Cambodia, East Timor, Nepal and Sri Lanka restoring agricultural usefulness in degraded areas in Guangxi Province, China, by through improving traditional farming practices and introducing new ones. New household enterprises have also been encouraged to stimulate non-farm employment and raise incomes the i ntroduction of technologies and practices to help farmers increase production while reducing water usage in Hebei, China. Farmers will benefit through savings on water, energy and fertiliser, and through the increased quantity and quality of their produce contributing funds to the Global Conservation Trust, which helps to conserve the world's diversity of crop varieties by ensuring that existing gene banks receive adequate funding. http://www.ausaid.gov.au/keyaid/rural.cfm The global agenda

Food and Agriculture Organization of the United Nations (FAO) URL:  http://www.fao.org/ The Food and Agriculture Organization (FAO) of the United Nations (UN) was founded in 1945 with a mandate to raise levels of nutrition and standards of living, improve agricultural productivity and better the condition of rural populations. This website provides information about UN initiatives in agriculture, forestry, fisheries, rural development, nutrition, economics, sustainable development and more. FAO helps developing countries and those in transition to modernise and improve agricultural, forestry and fishing practices, and ensure good nutrition for all, while paying particular attention to developing rural areas. International Service for the Acquisition of Agri-biotech Applications (ISAAA) URL:  http://www.isaaa.org/ The International Service for the Acquisition of Agri-biotech Applications (ISAAA) is a not-for-profit organisation that delivers the benefits of new agricultural biotechnologies to the poor in developing countries. While sharing these powerful technologies with those who can benefit from them, it also aims to ensure their safe use. United Nations Commission on Sustainable Development URL:  http://www.un.org/esa/sustdev/ The Commission on Sustainable Development was created in December 1992 to ensure effective follow-up of the 1992 United Nations Conference on Environment and Development (UNCED also known as the Earth Summit) in Rio de Janeiro, Brazil, where world leaders signed the Framework Convention on Climate Change and the Convention on Biological Diversity, endorsed the Rio Declaration and the Forest Principles, and adopted Agenda 21, a 300-page plan for achieving sustainable development in the 21st century. The commission is responsible for promoting dialogue and building partnerships for sustainable development between governments, as well as between governments and other members of the international community, and, at a local level, between groups such as farmers, non-government organisations, indigenous people, scientists and workers.

Dr Tsini (left) and Dr Tsedrolga transport medicines from a town clinic to the villages of rural Tibet Raising livestock is a major source of livelihood for the rural poor of Sumba, but the use of fires for land management reduces fodder and causes soil nutrient loss. Australia is sharing its experience in fire management to help protect the future incomes of the people in Sumba. New water connections in rural villages in Argao, Philippines, enable residents to improve their health and increase incomes

The majority of the world's poor live in rural areas, and are disproportionately dependent on climate and natural resources for their livelihoods, especially resources such as water, soil, forests and fish.