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Agriculture plays an important role in poverty reduction, particularly in poorer countries such as Tanzania where the majority of people depends on agriculture for their livelihood. Growth in agricultural value added had the largest impact on poverty reduction in Asia in the 1970s and 1980s. However, left alone, agriculture could also become a poverty trap. That is what is happening in many poorer countries in sub-Saharan Africa where the agriculture sector has been left behind. There are no adequate investments in rural infrastructure, agricultural technology, equipment or basic inputs. As a result, agricultural productivity either remains stagnant or increases only at a very slow rate, if at all.

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