FAO Deputy Director-General Daniel J. Gustafson was interviewed by China Investment to talk about poverty reduction. Flollowing content was provided by China Investment.

China Investment : Poverty reduction is a global issue and varies among different regions. As an international organization, based on FAO’s poverty reduction practices in rural areas across the world, what do you think is the key to success of poverty reduction?

Daniel J. Gustafson: As the question states, poverty reduction varies among regions, thus poverty reduction strategies must adapt to those various contexts, meaning that a universal strategy towards success does not exist. 

The international community has pledged to halve poverty and hunger by 2015. Extreme poverty remains in fact an alarming problem in the world’s developing regions, despite the advances made in the 1990s. Progress in poverty reduction has concentrated in Asia and especially in East Asia. In all other regions, the number of people in extreme poverty has increased.  

Reducing poverty and hunger are at the heart of FAO’s work and they are central goals of countries worldwide. By 2030, Member States have committed to eradicating extreme poverty for people everywhere. FAO is helping countries develop and implement evidence-based pro-poor policies, strategies and programmes that promote inclusive growth and sustainable livelihoods. 

The key to poverty reduction is broad-based economic growth, especially in agriculture and the rural economy. A focus on the agricultural sector is a necessary condition for sustainable poverty and hunger reduction. Most extreme poverty is concentrated in rural areas (75%) . Moreover, priority action needs to be taken to reduce hunger directly. In order to achieve poverty reduction, and tackle rural poverty, strong leadership is required, at all levels of government, accompanied by strong and transparent institutions. Moreover, a multi-sectoral approach is necessary in order to bring together agro-industry development, food security, social protection, health, education and ecological restoration. It is very important to advocate specific targeting and identification of poverty, in order to provide better and precise support to pressing challenges. Finally, innovation has played a major role in poverty reduction, especially in the agricultural sector. Introducing ICTs in remote areas not only allows for better productivity and connectivity with markets, but also knowledge and information sharing. 

Although each country, region, town or village need their unique approaches for poverty alleviation, I would say that the key to success are those components: focus on agricultural development, strong leadership and institutions, a multi-sectoral approach, targeting and innovation. This is also what FAO does, actually by using this approach. FAO, through its reform conducted during the last years, has put poverty reduction at the heart of its mandate through a much more focused, and targeted strategy, linking what we do in the agricultural sector with what is being done in the social protection sector. Countries need to establish a national vision of how agriculture and social protection can work together to move people out of poverty and hunger. 

China Investment: Reducing poverty is no easy job and involves complicated factors. What do you think are the challenges for poverty reduction? 

Daniel J. Gustafson: While considerable progress has been made in fighting global hunger and poverty, reducing poverty is no easy job, and there remain pressing challenges. Poverty remains deeply entrenched in the rural areas of many low-income countries. 

Currently, deteriorating ecosystems, unsustainable natural resource management and climate change are disproportionally affecting the poor. Climate change has made poverty eradication even more of a challenge. The goal of eradicating poverty will remain elusive if these trends are not reversed. Eradicating poverty continues to be a major challenge, especially in sub-Saharan Africa where the absolute number of poor has continued to increase.

Moreover, after such accomplishments, the last phase of poverty reduction is the most challenging and identifying the most vulnerable populations in order to implement targeted strategies becomes increasingly complex. The main challenge currently faced is thus the targeting of poverty, and the most vulnerable population. In fact, addressing all aspects of the remaining poverty is very demanding, as particular characteristics vary and the targeting system needs to be very strong. 

Rural poverty reduction has been achieved in contexts of rapid economic growth. However, economic growth is not a panacea for inclusive development. Rural poverty has persisted where policies failed to provide access to social services, social protection. Poverty largely concerns smallholder farmers, women left behind in remote rural areas, and children. Without efficient targeted policies on social services and provision, it will be difficult to break the vicious circle of poverty. 

China Investment: What is the role of the SSC in achieving the SDGs, such as eradicating hunger and poverty? 

Daniel J. Gustafson: South-South Cooperation has been a very successful programme that has brought together China and other developing countries with the aim to share experiences, technology and knowledge concerning specifically agricultural development. Under the SSC, FAO commits to facilitating dialogues, networking and mutual exchange of poverty reduction and food and nutrition security solutions between China and other developing countries in the world.  Information gives people options and alternatives, and the sharing of experiences can have optimal benefits for developing countries with similar challenges. The exchange of information through the SSC platform is key for policy-makers to gain inspiration and thus adapt successful strategies to a different context. 

China has offered great support in the context of the SSC. Having sent over 1000 experts and technicians for nearly two decades to Africa, the Caribbean and the Pacific, China has been a major contributor to poverty reduction and nutrition security. Countries that are seeking to apply innovative development solutions have sought advice from countries that have implemented such successful approaches. Through knowledge sharing, technical support and expertise, growth and development can reach the poorest and introduce sustainable, long-term solutions. 

The SSC has been an important contributor to the MDGs in terms of eradicating hunger and poverty, and ensuring food and nutrition security and should play a key and increasing role in the framework of the SDGs. 

For instance, in rice production, overuse of pesticides and chemical fertilizers decreases terrestrial and aquatic biodiversity while negatively impacting human health. In the long term, it contributes to a loss of aquatic and terrestrial biodiversity. Resources need to be used more efficiently in order to increase production in a socially, environmentally and economically sustainable manner. Through the SSC, Rice-Fish farming techniques were promoted to other developing countries. Farmers using the Rice-Fish systems benefit from diversified revenue streams from the same plot of land, thereby increasing marketing opportunities, diversifying products and achieving higher incomes.  

China Investment : What is GIAHS’ significance and its potential for global poverty reduction, as well as its contribution to China’s rural revitalization strategy? 

Daniel J. Gustafson: The GIAHS Program fosters in fact an integrated approach that combines sustainable agriculture and rural development. 

China’s poverty eradication strategies are largely based on creative and innovative solutions to agricultural challenges. Combining traditional food systems with innovation has proven to be highly successful. China is now considered a leader – or a champion – in GIAHS designations. Thanks to continuous innovation and conservation strategies, China has managed to maintain biodiversity and essential ecosystem services. 

The resilience of many GIAHS sites has been developed and adapted to cope with climatic variability and change, new technologies and changing social and political situations or natural hazards to ensure food and livelihood security and alleviate risk. 

For instance, Qingtian County was the first area to receive the GIAHS designation, and is now home to research on agricultural techniques. The farmers combined rice farming with aquaculture, growing fish in their flooded paddy fields. The rice paddies offered protection and organic food for the fish, and the fish softens the soil and provides nutrients and oxygen for the rice crop.  The traditional wisdom of Chinese ancestors has been preserved, and complemented by an ecological and organic agriculture system. Villages such as the one in Qingtian have not only improved productivity, ensured sustainable and ecological systems, but have also become famous, therein promoting agro-tourism as well. Villages like that one that were suffering from out-migration and poverty have now turned into traditional, self-sufficient Agricultural Heritage systems, encouraging in-migration, tourism and thus contributing to China’s rural vitalization. 

Poor and small farmers have found food and livelihood security through the GIAHS Programme in a sustainable manner. 

In fact, China has 13 GIAHS sites, 8 of which are located in poverty-stricken counties involving a total number of 9 million farmers. Promoting the products, such as through e-commerce platforms, from these sites would also be important for poverty alleviation and rural revitalization. We are now in discussion with various partners for this objective. 

Meanwhile, agribusiness development has been identified as a key poverty reduction strategy of China, and the government has put a lot of efforts in that regard, such as sending technical experts to help identify the crops to grow, as well as establishing and enhancing cooperatives. This combination of traditional food systems with new systems will certainly help reduce poverty. 

China Investment: How do you see the role of agriculture cooperation under the BRI initiative? 

Daniel J. Gustafson: The Belt and Road Initiative aims to help promote policy coordination, infrastructure connectivity, unimpeded trade, financial integration and mutual understanding among the people of the participating countries. Agriculture plays a crucial role in the concerned economies. It accounts for more than 25 percent of GDP, as well as for over 40 percent of employment in many countries involved in this initiative.  Investments in infrastructure will facilitate connectivity and access to markets, resources, information and services. 

Connectivity with the rest of the world is crucial, especially considering that regions along the Belt and Road are often highly dependent on the agricultural sector, are under-developed and do not have the necessary infrastructure to prosper and grow. However, infrastructure is not a panacea for growth and development. Policies and reforms will need to be implemented in order for those investments to promote inclusive growth and reach the poorest. 

Specifically, a focus on agro-business development will be necessary. Most countries along the BRI are characterized by labor-intensive, agricultural economies, and rural poverty remains a common and major challenge. Through better infrastructure, innovation could reach those areas and they could benefit considerably from the BRI and the knowledge exchange that it has facilitated. 

Agricultural cooperation is a main pillar for inclusive growth. FAO has found that investing in agriculture is approximately four times more effective at improving the poorest peoples’ lives than investing in any other sector.