To the extent that agricultural growth leads to a diversification of the demand pattern and hence of activities that can meet domestic demand, the employment-generating potential of an “agricultural push” strategy can be quite significant. The experience of developed countries demonstrates the critical importance of developing manufacturing activities and related producer services, so as to benefit from synergies and increasing returns to scale and to provide employment for the younger population. Modernization of agricultural production processes generates a growing surplus of labour in rural areas, and that labour surplus then seeks productive employment in urban centres. Improving the prospects for subsistence workers of finding jobs in more modern activities is essential for the structural transformation of the economy. This is the second prong of the approach outlined in this Report, focusing on employment opportunities in tradables sectors.