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The Poverty Reduction Strategy (PRS) approach championed by the World Bank and the International Monetary Fund lies at the centre of development assistance, debt relief, and development planning in many developing countries, including Ghana. Ghana has implemented a GPRS (Ghana Poverty Reduction Strategy I, 2003-2005) and a second generation of GPRS (Growth and Poverty Reduction Strategy II, 2006-2009) had just passed its implementation phase in 2009. This study focuses on the second GPRS - that is the Growth and Poverty Reduction Strategy II (GPRS II). The study also selectively reviews major literature on the role of agriculture in sustainable rural development and offers critical perspectives on realising the potential multiplier effects of sustainable agriculture in sustainable rural development promotion.The study adopted an analycentric approach to policy analysis of the GPRS II focusing on the micro-scale of typically farming communities in the Ejisu-Juaben municipality of the Ashanti region of Ghana. Livelihood analysis conceptual and methodological frameworks were also employed to assess the livelihood resilience building capabilities of local smallholder farmers.