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The Role of S&T in increasing agricultural productivity in the LDCs Lisa Borgatti Role of S&T in increasing agricultural productivity • • • • Importance of Agriculture How technology change occurs in LDCs Role of Spillovers Financing of Agricultural R&D - from Donors - from local Governments How important is agriculture in LDCs • Agriculture accounts for 1/3 of GDP • Agricultural land accounts for 40% of land area • 70% of population lives in rural areas • A 1% increase in crop yield reduces the number of poor by over 6 million. (Thirtle et al., 2003) Innovation in the LDCs • What is 'innovation'? • Innovation as source of economic growth and poverty alleviation • Role of research International Spillovers • Spillovers come from: - developed countries - international research institutes, i.e. CGIAR - other developing countries Finance R&D: Government - 1 Chart 2: Agricultural research intensity 2 1.8 1.6 1.4 % 1.2 1 0.8 0.6 0.4 0.2 0 2001 1998 LDC 1995 1992 1989 1986 1983 1980 1977 1974 1971 ODC Finance R&D: Government - 2 Chart 3: Agricultural intensity ratio for the LDCs and long term projection 1.5 1.5% target 1.3 1.1 Projections % 0.9 0.7 0.5 0.3 0.1 2015 2011 2007 2003 1999 1995 1991 1987 1983 1979 1975 1971 -0.1 Financing R&D: Donors - 1 % of total Chart 5: Agricultural research 70 60 50 40 30 20 10 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 LDC share in commitments LDC share in disbursements Financing R&D: Donors - 2 • Donors' interest in developing agricultural capabilities in the LDCs is falling • Donors' priorities have switched towards ODCs • Aid provided to upgrade agriculture in LDCs amounts to a tiny 0.03% of agricultural GDP Conclusions • Existing technology and research should be capitalized on • Greater Government involvement and greater role for international research centers • Aid allocation must be in line with LDC's domestic development needs • For its pro-poor effect, agricultural research must become one of donors' priorities