prove access to food and increase rural employment. The remarkable achievements in poverty reduction in China and India have come from public investment in rural areas. Pub­lic investments, particularly in human capital, physical capi­tal, and science and technology, have been used to stimulate economic growth and reduce poverty. This investment in rural areas, where most of the poor reside, has been impor­tant in reducing rural poverty (Thorat and Fan, 2007). FAO recommended a twin-track approach to quickly reduce hun­ger and poverty. One track would create opportunities for the hungry to improve livelihoods and the second would re­quire direct and immediate action to enhance access to food (FAO, 2002). These programs could take different forms, such as direct food assistance, food for work, and rural non-farm employment. Rural public works programs generate nonfarm employment and reduce poverty. These programs would be complementary because they would mitigate in­come fluctuation (IFAD, 2002b).
     Both food and cash transfers have increased household resources. The multidimensional nature of malnutrition and the nonlinear link between food consumption and nutrition make it difficult to attribute a nutritional outcome to ei­ther food or cash. A combination of food and cash transfers should be considered more widely, especially if done under a national social protection program (Gentilini, 2007). Poli­cies to improve science and technology in rural areas, invest­ment in rural areas to increase labor productivity, improved access to nonfarm work and direct food assistance all help decrease rural poverty and improve access to food. How­ever, effective implementation and monitoring will require good collaboration among the stakeholders involved.

1.5      Trade

1.5.1     Agricultural GDP in ESAP
Trends in the agricultural share in national economies were not homogeneous across ESAP. Agriculture was very impor­tant in South Asia. It was important in South Asia trade. Though slowly declining in the past ten years, compared with industrial Europe, the share of agriculture in the gross domestic product (GDP) was high in East Asia and the Pa­cific and in South Asia (Table 1-3). Trade reform in export partners, particularly OECD countries, will affect a signifi­cant share of the population. East Asia and the Pacific has been a net agricultural exporter for most of the past two decades. The region's trade position after the WTO was cre­ated, however, fluctuated. The region became a net importer in 1996, followed by rapid growth in net exports in 1998. South Asia is a net agricultural importer in a region in which India is the only country that is a net agricultural exporter. It is also dominant in the region's exports.
     The agricultural share in GDP and in total trade has declined over the last decades in many ESAP countries, but it remains a significant source of employment, income and economic activity. The share of agriculture in the GDP ranges from 14 to 57%, from Kiribati to Myanmar; agri­culture and agricultural products represent a large share of regional exports. Products include natural rubber, palm oil, rice, fruits and vegetables, mainly exported to the United States, Europe and Japan. Imports are primarily cereals and dairy products, mainly from the United States and Europe.

Table 1 -3. Agricultural share of GDP in ESAP region, 2004.

n/a = not available.
Source: World Bank, 2006.