COMCEC Agriculture Outlook 2016

Introduction

As of 2015, world population has reached to 7.4 billion people, and almost half of it lives

in rural areas where the main economic activity of people is agriculture. For many economies,

especially those of developing countries, agriculture plays a distinctive role in economic

development.

Therefore, it is seen as an important engine of growth and unique source for poverty

reduction in most of the developing world. Empirical studies demonstrate that agriculture

sector is the most effective sector in generating income for the poorest segments of the

population. According to the World Bank, 1 percent economic growth originated from

agriculture increases the expenditures of the three poorest deciles by at least 2.5 times than 1

percent economic growth originated from the rest of the economy in developing countries.

Hence, it is accepted as a key sector for economic growth, reducing poverty and sustainable

rural development especially in developing countries.

In most of the Organization of Islamic Cooperation (OIC) Member Countries, agriculture

is one of the leading sectors in terms of its contribution to income, employment, and trade. In

2014, OIC agricultural gross domestic production (GDP) reached to 682 billion US Dollars with

a share of 21 percent in the world’s agricultural production. Furthermore, the number of

people employed in the agriculture sector in the OIC Member Countries reached to 240 million

in 2013, which accounts for the 18 percent of world’s agricultural employment. Agricultural

commodity trade of the 57 OIC Member Countries has increased considerably in the period

from 1990 to 2013 and reached 357 billion US Dollars. Thus, agriculture sector has a critical

importance for many OIC Members Countries for generating income, increasing welfare,

eradicating extreme poverty and hunger.

This report highlights the recent state of agricultural sector by analyzing macro

agricultural indicators, sectoral indicators and state of food security in the OIC Member

Countries. Agricultural value added, growth rates, population, employment, trade, land use,

crop production, agricultural productivity, irrigation, fertilizer, mechanization and the

dimensions of food security in the OIC are analyzed in this study. The report also dwells on the

cooperation efforts under the Standing Committee for Economic and Commercial Cooperation

of the Organization of Islamic Cooperation (COMCEC).

For examining the current agricultural situation, OIC Member Countries are analyzed in

three groups: African Group, Arab Group and Asian Group. Furthermore, for more detailed

analysis, agriculture sector trends in the OIC member Countries are compared with the world

trends. Lastly, key figures and tables created by COMCEC staff using most recent data from

various international organizations are presented with the aim of enriching the understanding

of the state of agriculture sector in the OIC.

Ligon and Sadoulet, 2007