The document discusses trends in rural poverty and agriculture. It notes that 2/3 of the world's poorest live in rural areas engaged in subsistence farming. Agriculture has traditionally played a passive role but must now support rural development. There are two types of world agriculture - highly efficient in developed countries and inefficient, low-productivity subsistence farming in developing countries. The document outlines stages of agricultural development from subsistence to mixed farming to specialized commercial farming and discusses factors that have hindered transitions like land fragmentation, population growth, and monopolistic landowners. It analyzes the complex relationship between agriculture and rural livelihood diversification.
The document discusses trends in rural poverty and agriculture. It notes that 2/3 of the world's poorest live in rural areas engaged in subsistence farming. Agriculture has traditionally played a passive role but must now support rural development. There are two types of world agriculture - highly efficient in developed countries and inefficient, low-productivity subsistence farming in developing countries. The document outlines stages of agricultural development from subsistence to mixed farming to specialized commercial farming and discusses factors that have hindered transitions like land fragmentation, population growth, and monopolistic landowners. It analyzes the complex relationship between agriculture and rural livelihood diversification.
The document discusses trends in rural poverty and agriculture. It notes that 2/3 of the world's poorest live in rural areas engaged in subsistence farming. Agriculture has traditionally played a passive role but must now support rural development. There are two types of world agriculture - highly efficient in developed countries and inefficient, low-productivity subsistence farming in developing countries. The document outlines stages of agricultural development from subsistence to mixed farming to specialized commercial farming and discusses factors that have hindered transitions like land fragmentation, population growth, and monopolistic landowners. It analyzes the complex relationship between agriculture and rural livelihood diversification.
The document discusses trends in rural poverty and agriculture. It notes that 2/3 of the world's poorest live in rural areas engaged in subsistence farming. Agriculture has traditionally played a passive role but must now support rural development. There are two types of world agriculture - highly efficient in developed countries and inefficient, low-productivity subsistence farming in developing countries. The document outlines stages of agricultural development from subsistence to mixed farming to specialized commercial farming and discusses factors that have hindered transitions like land fragmentation, population growth, and monopolistic landowners. It analyzes the complex relationship between agriculture and rural livelihood diversification.
- 2/3 of the world’s poorest are peasant land in Asia located in rural areas and engaged - overpopulation primarily in subsistence agriculture - 3 major interrelated forces (basic concern is survival) that molded traditional - stagnation and retrogression in pattern of land ownership economic development in rural into its present fragmented areas – often the cause of poverty, condition i growing inequality, rapid population - intervention of growth & unemployment European rule – Role of agriculture colonizers Traditionally – passive and supportive: to (sharecroppers and provide sufficient low-priced food and tenant farmers ) manpower to expanding industrial economy - progressive Recently – agricultural sector and rural introduction of economy play in an important part in any monetized overall strategy of economic progress; transactions and rise integrated rural development in power of - Accelerated output growth – money-lender technological, institutional and price - rapid growth of Asian incentive changes populations - Rising domestic demand for Economics of Agricultural Development agricultural output 1. Subsistence farming - Diversified, non-agricultural, - Farming for family consumption labor-intensive rural development (staple foods) activities - Low output and productivity 2 Kinds of World Agriculture - Minimal capital investment - highly efficient agriculture - Land and labor – main factors of (developed countries) – high production productivity and output - Labor is unemployed for most of the - inefficient and low-productivity year agriculture (developing countries) – - Harsh and static environment mainly subsistence farming - Highly risky and uncertain particularly family farm ● Sharecropping and interlocking Stagnation of LDC agriculture factor markets Productivity - Occurs when peasant farmer uses Land productivity – measured as kilograms landowner’s farmland in exchange of grain harvested per hectare of agricultural for share of food output land - Leads to inefficiency Output growth – technological and biological - Screening hypothesis – charge high improvements effective rents for pure rental Peasant agriculture contracts than sharecropping ● Direct and indirect supports to small contracts farms in agriculture - Interlocking factor markets – ● Perception: sector still discriminated landowner is also employer, loan in public policy? officer, customer which gives him ● Responses to this discrimination monopoly power through several decades of RD 2. Transition to mixed and diversified thinking farming Diversification strategy within - Output – staple crops, cash livelihoods approach – movement away crops (fruits vegetables, from ‘agriculture first’ strategy that focused coffee, tea) and simple on a small farm as main platform for poverty animal husbandry reduction - Use of simple labor-saving Agriculture performance vis-à-vis devices (small tractors, diverse rural livelihoods mechanical seeders, Three dimensions of this complex animal-operated steel plows) relationship: - Use of better technology Dimension 1: ‘Rural growth linkages’ model (seeds, fertilizers and simple - Refers to the different linkages from irrigation) agriculture that result in the - Marketable surplus formation and growth of rural - Minimize impact of staple non-farm enterprises (RNFE) in rural crop failure and improve areas. income security - RNFE - important sub-sector and for 3. Specialized: Modern commercial many years in poverty reduction farming policy - Most advanced stage of - Key assumption in argument for individual holding in a mixed RNFE? market economy - Focus of policy: diversify sector - Specialized farming – pure away from agriculture commercial profit; high Dimension 1 approaches: productivity - Consumer goods and services - - Resource utilization expenditure linkages - Capital formation, - Inputs and services to agricultural technological progress, production - backward linkages scientific research and - Processing and marketing services development related to farm outputs - forward - Cultivated fruit, vegetable linkages farms, vast wheat and - Studies on growth multipliers reveal: cornfields consumption linkages dominate ● ‘Agriculture first’ strategy as the forward and backward linkages in most dominant approach to explaining total effects Research and Development Dimension 2: effects on agriculture of household-level diversification - Positive effects on agriculture as sub-sector benefits from input and output linkages in rural economy Dimension 3: Role of on-farm diversification in contrast to off-farm