Trends in agricultural diversification : regional perspectives

Abstract

Policymakers and agricultural planners are increasingly focusing on agricultural diversification as a strategy to promote agricultural development because it offers opportunities to reduce production and price risks, increase flexibility, increase agricultural incomes, and sustain productivity and growth. Although attention to the dialectical relationship between diversification and specialization is not new, concern about diversification has recently intensified because of major developments in the agricultural sector in many developing countries, particularly Asia. This paper first reviews these developments and some of their implications. Then, it discusses the dimensions of diversification and its role in advancing agriculture in developing countries. Finally, policy reforms, essential components of future agricultural development strategies, are proposed. The paper's theme is the desirability of introducing greater flexibility into farming systems and of broadening the basis of the rural economy in general.