A pro active agricultural diversification policy would need to combine market and production related interventions.

The developed countries encourage the adoption of modern technologies in the agricultural sector and crop diversification.

J.Quiroz and A.Valdés (1995). Agricultural diversification and policy reform , Food Policy, Vol.20, No.3. pp. 245 255.

In many developing countries, clear property rights are very important for the development and diversification of the agricultural and mineral sectors.

Unfavourable terms of trade for agriculture have often been mentioned as one of the main impediments to agricultural development and diversification.

Delgado, C. (1995). Agricultural diversification and export promotion in sub Saharan Africa , Food Policy, Vol. 20, No. 3, pp. 225 243.

In this context, the diversification towards rural non farm activities, initially based on the processing of agricultural resources, is of crucial importance.

Pingali, P. And M. Rosegrant (1995). Agricultural commercialization and diversification Processes and policies , Food Policy, Vol.20, No.3, pp.171 185.

FAO concludes that for some commodities tariff escalation constitutes probably one of the major constraints to vertical diversification of their agricultural exports.

(h) Agriculture and rural development to promote agricultural competitiveness through the long term development of efficient agricultural systems, diversification and value added activities, and to ensure food security, inter alia, through research and development agreed

In some instances, countries heavily dependent on a single mineral or agricultural commodity export have established diversification funds by levying a cess on exports.

The agricultural grant scheme was completed in June 1995 and was replaced by the rural development assistance scheme with emphasis on diversification and development related initiatives.

Diversification

The UNCTAD report notes that the diversification of agricultural production has a real impact on poverty reduction, which is itself a key element in any desertification control strategy.

6350 Import diversification

B. Diversification experiences

Finance for diversification

Some successful agricultural diversification schemes and extension work have focused on individual farmers willing and able to take risks rather than promoting a particular crop among a wide spectrum of farmers.

The proceeds are devoted to funding research or extension services this has generally been channelled to promoting the upgrading or exports of that particular commodity or to agricultural diversification in general.

Diversification can serve as a risk management strategy, but risk can also hamper diversification.

Technical and financial assistance shall be provided to landlocked developing countries for improving agricultural infrastructure, enhancing productivity and diversification and for the development of facilities and systems for compliance with the sanitary and phytosanitary and technical barriers to trade requirements for the export of agricultural commodities.

(c) Client diversification and

Risk factors in diversification

Enterprise level diversification patterns

5.2 Diversification of intervention options

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

Financing of diversification in Colombia

H. Diversification of African economies

Economic and trade diversification could be crucial, and donor commitments to investment in economic diversification could be essential.

3. Diversification in commodity dependent countries

Social and environmental factors in diversification

A. Diversification in commodity dependent countries

Some advice from NGOs about diversification

B. Enterprise sector strategies in diversification

Government policies and firms diversification decisions

2. Agenda for commodity based diversification

This diversification is an important achievement.

Agricultural Non agricultural WOMEN AND UNEMPLOYMENT

Various forms of domestic resource mobilization for diversification (e.g. taxes and levies earmarked for diversification) were mentioned in this connection.

In the context of the built in agenda of the Uruguay Round, the further liberalization of agricultural trade, in particular the elimination of agricultural subsidies in developed countries, and the integration of the textiles and clothing sectors into the Uruguay Round Agreements are especially important for the diversification efforts of commodity dependent developing countries.

It is often observed that export oriented agricultural production gets much of the attention in research and extension work, which may be good for export diversification but less so for food security and possibly for poverty alleviation.

This supports income generation and diversification activities.

The international trading environment and commodity diversification

The enterprise sector and developments in diversification