Book excerpt: With roughly three-quarters of the world’s poor living in rural areas, addressing global poverty requires paying attention to rural populations, especially smallholder farmers in developing countries. Millions of smallholders and others among the developing world’s poor, including a large proportion of women, participate as producers, laborers, traders, processors, retailers, or consumers in agricultural value chains. A value chain refers to the set of interlinked agents that produce, transform, and market the products that consumers are prepared to purchase (see Figure 1 for an outline of a stylized value chain). Improving the performance of agricultural value chains has the potential to benefit large numbers of low-income and poor people. Innovation for Inclusive Value-Chain Development: Successes and Challenges assesses how to improve agricultural value chains, particularly value chains that include smallholders.