The Outlook for Agriculture and Rural Development in the Americas: A Perspective on Latin America and the Caribbean

In order to give decision makers in this Hemisphere a consensual reference document,
the Economic Commission for Latin America and the Caribbean (ECLAC), the United
Nations Food and Agriculture Organization (FAO), and the Inter-American Institute
for Cooperation on Agriculture (IICA) decided to join forces to prepare this report on
trends in the agricultural sector and rural areas. It is based on a common data base and a
series of indicators available to all interested parties at www.agriruralc.org.
These three institutions intend to make this document the first of a regular series of
publications, which will be the result of their continued combined efforts to collaborate
and coordinate their work. In this way, they hope to respond to the wishes repeatedly
voiced by member governments of the three organizations to avoid duplications and
inefficiencies and improve inter-agency cooperation.

The current global economic crisis has led to volatility in commodity prices and a decline
in remittances from abroad, foreign investment, tourism and exports in Latin America
and the Caribbean (LAC), aggravating food security problems and heightening concerns
over the possibility of meeting the Millennium Development Goals of reducing extreme poverty and malnutrition. In this context, the goverments of the region have formulated
some effective policies. However, this report is of the view that the current development
model needs to be rethought and the role and importance of agriculture and rural areas
need to be re-examined.

From the analysis performed, we have learned that the Americas, and especially the Southern
Cone, United States, and Canada, have major natural comparative advantages due to the
fact that their land, fresh water and climate are well-suited to agricultural production,
especially the production of basic foods. In a world with a growing population and changing
consumer habits, with projections for continued growth in the demand for food and other
nonfood products derived from the fisheries, agriculture and forestry sectors, and in view
of the increasing scarcity of natural resources, the region has advantages.

But the Americas also have a responsibility to use these resources as efficiently and
sustainably as possible, which will require continuous research and adaptation, especially
in view of the vicissitudes of climate change. Its effects (and costs) are already being
seen, especially the increased frequency and intensity of extreme climatic events such as
droughts, floods, and storms.