LAC Bureau : agriculture and natural resources -- background and options

The major objectives of the agriculture and natural resources strategy for LAC countries should be to (1) increase the level and growth rate of real national income, (2) increase the real incomes of rural people, and (3) achieve the natural resource goals of sustainable agriculture and forestry. Improving agricultural productivity and increasing farm output should be considered as means to increase the incomes of rural people rather than as ends in themselves. Opportunities to increase the incomes of rural people can be created by changing sectoral policies that have discriminated against agriculture and improving the institutional arrangements, such as the property rights structure, where they negatively affect productivity and resource conservation. While several LAC countries showed signs of positive economic and political development as the 1980"s ended, the economic developments were largely negative if the decade is viewed in its entirety. The most encouraging developments of the 1980"s were political, with democratic governments replacing military dictatorships in several countries and significant reductions in civil rights abuses in a number of countries, though unfortunately not universally. Several trends illustrate the serious problems in the region, especially declining real per capita income, declining per capita food production, and increasing external debt. Serious problems in a number of LAC countries include deforestation, the loss of biodiversity, mismanaged watersheds, misuse of lands, and water pollution. There are also some positive trends, such as increases in access to education and life expectancy at birth. Issues facing the region should be considered at three levels: policies of the LAC countries, policies of the United States, and restraints imposed on USAID by legislation and practice. The issues related to desirable policy reforms in the LAC countries fall into four broad categories: (1) economic policy, trade, and investment; (2) agricultural productivity, sustainability and growth; (3) small farmer, employment, and land tenure, and (4) natural resource management. (Author abstract)