Poverty Reduction in Rural Areas of Low-Income Countries in Ssa

Nowadays, agricultural prices are highlighted around the world combined with, as alleged collateral effects, hunger and malnutrition in Sub-Saharan Africa (SSA). However, today SSA has around 47,5 percent of rural population in extreme poverty while between 1990 and 2005 when food prices were stable and low, extreme rural poverty in SSA involved around 64.6 percent of population. We assume that the undernourishment or starvation continued in SSA because there the misery persisted. Poverty reduction is the only way to the end hunger in Africa. Also, for an agricultural country in SSA the best way to solve the problem of poverty is through agricultural development. Thus, we have built up a model trying to answer to the question of how the agricultural gears in SSA - 9 (Burundi, Ghana, Malawi, Mozambique, Rwanda, Uganda, United Republic of Tanzania, Zambia and Zimbabwe)were moving between 1990 and 2005, and assess how the agricultural growth could reduce rural poverty. The most important result is that the main tools that had a strong relation with poverty reduction in SSA - 9 were legislation on property rights (PR), access to the credit system, Human capital and infrastructure.