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FAO: Rural Strengthening is the Basis of Economic Development

According to the United Nations Food and Agriculture Organization (FAO) – “State, Food and Agriculture 2017,” the village plays a decisive role in the economic growth of agricultural sectors.

In order to achieve this growth, it is important to pay more attention to the development of agriculture and villages, where the most impoverished and vulnerable people live, says the study.

The survey showed that only 22% (460 million) of developing populations in the 1960s lived in cities, with 49% of the population (3 billion) inhabited by large and small towns.

In the publication of the FAO member countries, including Georgia, data indicate that the ratio between cities and villages in Georgia is as follows: 54.5% of the population lives in large and small towns of Georgia, 35.8% of the population live in the villages in three hours distance from the cities, only 9.7% of the population lives in the village located 3 hours distance from the city.

In order to achieve economic growth, the research emphasizes three main directions: the first – to imply the agrarian policy of the state that small entrepreneurs are able to deliver their products to the big markets. Smaller entrepreneurs should improve the credit conditions and the state must protect the ownership of small entrepreneurs by legal means. Also, it is important that small entrepreneurs have been presented with competitors in equal terms, under the conditions of the competition.

The second direction is: to build relevant infrastructure, connecting villages with large market centers. The absence of road, electrical and transport infrastructure in many developed countries creates significant problems for supply of agricultural and food products to market centers.

The third direction implies not only integration of large and well developed cities and rural centers, but also connecting large cities and less developed centers. According to the survey, small town centers have great potential for trade with food.