Agriculture, the Economy, and the Changing World: A Closer Look
By Ronald Ochineg, World Economic Federation | July 2025
Agriculture has always played a foundational role in human survival, but today, it is also one of the most powerful forces shaping the global economy. As countries push to recover from inflation, supply chain disruptions, and climate-related losses, agriculture is once again emerging—not just as a food source—but as a key player in economic transformation.
In this piece for World Economic Federation, we explore how agriculture connects with the economy and why it remains central in discussions about development, sustainability, and growth.
Agriculture: The Oldest Industry, Still Driving the Future
In both developed and developing countries, agriculture touches almost every part of life—from the food we eat to the jobs people hold. For many regions, especially in Africa, South Asia, and Latin America, farming is still the backbone of the economy. It supports millions of smallholder farmers, fuels local markets, and supplies essential raw materials to industries like food processing, textiles, and energy.
But agriculture is no longer just about traditional farming. Today, it intersects with:
- Technology (drones, AI-powered farming, mobile apps)
- Climate action (carbon farming, drought-resistant crops)
- Trade and geopolitics (food security, export restrictions)
- Youth employment and innovation (agripreneurship)
At a time when many economies are struggling with high unemployment and inequality, agriculture offers a chance to create millions of new jobs—especially in rural and underserved areas.
A Sector Under Pressure
Despite its importance, agriculture is under constant threat. Climate change has made rainfall less reliable and pests more destructive. Many farmers lack access to markets, finance, and modern tools. Global food prices are unstable, and regions that rely heavily on imports face the risk of supply shocks.
From the Horn of Africa to parts of Southeast Asia, farmers are already feeling the effects:
- Poor harvests due to extreme weather
- Soil exhaustion from overuse
- High cost of fertilizer and fuel
- Limited access to credit or insurance
For agriculture to truly boost the economy, these challenges must be addressed with urgency and long-term strategy.
The Economic Case for Investing in Agriculture
Investing in agriculture doesn’t just help farmers—it strengthens entire economies. Studies have shown that growth in agriculture is up to four times more effective at reducing poverty than growth in other sectors. Why? Because it directly impacts low-income populations, boosts local spending, and creates ripple effects across supply chains.
Key areas of focus include:
- Infrastructure – better roads, storage facilities, and irrigation systems
- Access to markets – fair pricing, trade agreements, and cooperatives
- Digital agriculture – using data and tech to improve efficiency
- Youth engagement – turning agriculture into a viable career option
Countries that recognize the economic potential of agriculture will be better prepared for future crises—whether environmental, economic, or political.
Final Thoughts
Here at the World Economic Federation—a platform where economic and development voices share stories, insights, and perspectives—we believe agriculture deserves more attention in global conversations. It is not a sector of the past, but a gateway to a more inclusive, resilient future.
Whether you’re a policymaker, entrepreneur, or simply a concerned citizen, one thing is clear: the future of the economy will be grown—literally—from the ground up.