In LDCs, 3.3 billion (63 percent of 5.3 billion) people and 500–700 million poor people live in rural areas (by the World Bank count). The rural poor represent about 70 percent of $1/day poverty in LDCs; put another way, 20–25 percent of LDC rural people are poor, a higher percentage of poor than for the total LDC population. And in most developing countries, the agricultural population is growing, pressing on a limited arable land base. Moreover, the rural poor become urban poor as they migrate to densely populated cities in their search for employment.

The late 1980s were the first time in world history that the majority of the world's labor force was engaged outside agriculture. Although only 4 percent of the world's output originates in agriculture, almost half of global labor is in agriculture (World Bank 2003h:48, 192).

Agriculture is an important component of LDC economies. Sixty percent of the labor force in low-income countries is employed in agriculture, which produces about 25 percent of GDP. Even in middle-income countries, where agriculture's share of GDP is only about 10 percent, the sector still accounts for more than 40 percent of employment (Chapter 4). “When coupled with agro-related industries and food-related services, its share, even among middle-income countries, is typically 25 to 40 percent of GDP” (World Bank 2004a:103).

Clearly, any approach to reduce poverty and accelerate economic growth should emphasize rural development and rural income distribution, including increasing the productivity and income of the rural poor.