Agricultural Modernization, Structural Change and Pro-poor Growth: Policy Options for the Democratic Republic of Congo

Abstract

This paper applies the framework for pro-poor analysis to welfare changes from a CGE-microsimulation model to analyze what are the better or worse models for agriculture modernization, and to estimate the contribution of growth and redistribution to changes in poverty in DRC. The findings indicate that labor-using technological change generates absolute and relative pro-poor effects whereas capital-using technological change leads to immiserizing growth. More importantly, the results suggest that labor-using technological change can be independently sufficient for reducing poverty via the income growth effects. This study also highlights how developing input supply networks, securing tenure among smallholders, and improving access to land for women are important for pro-poor agricultural modernization. JEL Classification: C68, D33, O33, Q10, Q18.