Review of Colombia's Agriculture and Rural Development Strategy

This report is the result of a collaborative effort between the government of Colombia and the World Bank. Its purpose is to make recommendations to the new administration concerning the ingredients of a medium term strategy consistent with a dual objective of increasing the competitiveness of the agricultural sector and combating rural poverty. The report seeks to lay the foundations for a close and sustained dialogue out of which may flow more specific proposals for a policy reform and for investment projects. This challenge calls for a strategy with the following components: a) removal of obstacles impeding the effective operation of land and labor markets, in order to raise productivity and combat rural poverty; b) reappraisal of infrastructure investment priorities in the rural sector, based on a selection of projects with the highest economic rates of return and genuine ownership of projects by beneficiaries; and c) the combination of further steps to liberalize the agricultural trade regime with the development of other (non-trade) policy instruments that tackle rural poverty directly, and provide timely relief to farmers in subsectors hit by short run downturns.