World Bank Document

Annex I:  AGRICULTURE MODERNIZATION STRATEGY  

 

1.  

Although its share of the economy is declining―from 30 percent of GDP in 2000 to 15.8 

percent in 2014―agriculture remains a critical source of rural employment and an important 

driver of economic growth and poverty reduction. Agriculture accounts for 27 percent of total 

employment. Structural changes in land tenure following the break-up of Soviet era collective and 

state farms resulted in the formation of private farms with long-term leases and in the expansion of 

small household plots. These farms account for much of the growth in agricultural output in recent 

years, with strong productivity gains leading to increased household incomes. State planning and 

control is now confined to cotton and wheat; arrangements for other crops, mainly fruits and 

vegetables, as well as livestock are more flexible, leading to significant diversification. Consequently, 

export earnings from horticulture more than tripled between 2006-14, from $373 million to $1.4 

billion, with productivity gains exceeding 50 percent especially for fruits, vegetables and wheat since 

2000.