Effects of Agricultural Modernization on Poverty Reduction: The Case of the Cassava Sector in Cameroon

The fight against poverty is the central focus of the Sustainable Development Goals (SDGs). Despite this manifestation of international solidarity aimed at improving the living standards of populations, the poverty rate remains surprisingly high in developing countries, including Cameroon. Recent literature indicates that in most developing countries, the poor predominantly reside in rural areas. Given that the main activity in rural areas is agriculture, the poor are therefore individuals who depend on agriculture for their livelihood. Thus, to hope to escape poverty, the modernization of agricultural production techniques, particularly through the potential for increased productivity, appears to be an effective channel. Cameroon stands out due to the diversity of its agricultural sector. Among the numerous agricultural products, cassava holds a particularly prominent position. In terms of production and consumption, cassava ranks first among roots and tubers in Cameroon. It represents a significant financial opportunity through the development of value chains, with applications in the production of flour, glue, alcohol, among others. Unfortunately, much like the agricultural sector in many developing countries, the yield in cassava production falls far short of its optimal potential. Therefore, it would be pertinent to understand the role of modern technology in addressing poverty. The adoption of advanced agricultural technologies, such as improved cassava planting materials (ICPM), could play a critical role in enhancing productivity, increasing incomes, and ultimately reducing poverty among rural households. The objective of this article is therefore to estimate the effect of the modernization of agricultural production techniques on poverty in Cameroon. To achieve this, we used data from a survey conducted by the International Institute of Tropical Agriculture (IITA) in 2019 on a sample of 1,233 cassava producers in the main cassava production basins, covering the 2017-2018 agricultural season. For the purposes of our study, we retained a sample of 1,198 producers whose information was deemed reliable. In this contribution, modernization was accounted for through the binary variable of adoption of improved cassava planting material (ICPM), and poverty was accounted for through the binary variable of the poverty line at $1.90, separating the poor from the non-poor. We also employed a bivariate recursive probit model to estimate the causal relationship between the adoption of ICPM and poverty. The choice of this model is primarily justified by its ability to estimate causal relationships when both the explanatory and explained variables are binary. This model also allows for the correction of endogeneity bias inherent in self-selection in the adoption equation. The results revealed that agricultural modernization, particularly the adoption of ICPM, has a positive effect on the probability of producers escaping poverty. Specifically, we observed that the adoption of ICPM increases the probability of escaping poverty by 4.8% due to the adoption of ICPM. Furthermore, producers who adopted ICPM saw their probability of escaping poverty increase by 85.9% compared to what it would have been without adoption. This study also highlights the fact that value chains, access to ICT, and access to credit increase the probability of escaping poverty. Conversely, climatic shocks such as floods increase the probability of falling into or remaining in poverty. Based on these results, we have formulated several economic policy recommendations.