Information Note #7: Agricultural Trade and Decent Rural Employment
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Given the significance of agriculture to rural livelihoods, agricultural trade has the potential to significantly impact rural employment and incomes. Agriculture is the largest employer of the world’s poor, most of whom live in rural areas. As developing economies grow, and undergo structural transformation, employment tends to shift away from agriculture into other sectors, such as industry or services. Along the path of structural transformation, agricultural trade can speed up shifts in econ omic activity from agriculture to other sectors, resulting in asymmetries between sectors in terms of output growth and incomes, thereby posing both risks and opportunities for decent rural employment in developing countries.