320rk1 agricultural transformation and rural development “ it is in the agricultural sector that...
TRANSCRIPT
320RK 1
Agricultural Transformation and Rural Development
“It is in the agricultural sector that the battle for long-term economic development will be won or lost.”
Gunnar Myrdal
320RK 2
Agricultural Transformation and Rural Development: Outline
Integrated rural development Growth and stagnation of the agricultural
sector since 1950 Characteristics of agrarian systems in Latin
America, Asia, and Africa Economics of peasant subsistence agriculture
and transition to commercial farming Land reform and land markets Role of women in agriculture Case Study
320RK 3
Agricultural Transformation and Rural Development: Introduction
The heavy emphasis in the past on rapid industrialization may have been misplaced
Agricultural development is now seen as an important part of any development strategy
Although agriculture employs the majority of the LDC labor force, it accounts for a much lower share of total output
Trends in per capita food and agricultural production, 1950 -1994
320RK 4
Agricultural Transformation and Rural Development
How can agricultural output and productivity per capita be substantially increased that will benefit the small farmer and support the urban population?
What is the process by which traditional farms are transformed into commercial farms?
Why do traditional farmers resist change? Are price incentives sufficient to increase
output? How can rural development be achieved?
320RK 5
Agricultural stagnation and Growth Since 1950: Output and employment, 1995
Region % of L force in Agriculture
Agricultural output as a % of GDP
South Asia 64 30
East Asia 70 18
Latin America 25 10
Africa 68 20
320RK 6
320RK 7
320RK 8
320RK 9
Distribution of Farms and Farmland
Avg. Operational farm size hectares
% of farmland above 50 hectares
% of tenanted area in farmland
Asia:BangladeshIndiaPhilippines
1.62.33.6
Na3.713.9
20.98.532.8
Latin America:BrazilCosta RicaPeru
59.738.116.9
84.679.779.1
10.29.013.6
320RK 10
320RK 11
Structure of Agrarian Systems
Two kinds of world agriculture: Efficient agriculture- high labour and
land productivity Inefficient agriculture- diminishing
returns to labour
320RK 12
Agricultural in Latin America, Asia, and Africa
Peasant agriculture in Latin America, Asia, and Africa Latin America
The Latifundio-Minifundio pattern Resource underutilization
Asia Fragmentation and subdivision of peasant land
in Asia Africa
Extensive cultivation patterns Shifting cultivation
320RK 13
320RK 14
Latifundio-Minifundio pattern
Latifundios- employment of 12 or more Minifundios- employment of 2 or less Family farms- employment of 4-12 workers Inefficient operation of latifundios Inequality in land distribution
320RK 15
Fragmentation and subdivision
High population density and small patches of land
Equal distribution of land Traditional pattern of land ownership arose
from 3 forces:
1. Colonial rule
2. Power of money lender3. Rapid population growth
320RK 16
Subsistence Agriculture and Extensive cultivation
Importance of subsistence agriculture in the village community
Practice of shifting cultivation Right to common property such as land and
water Historical forces restricting growth of output:
Traditional farming practices Intensive and shifting cultivation Scarce labour supply during peak season
320RK 17
Economics of agricultural development
Three broad stages in the evolution of agricultural production:
Primitive stage- subsistence peasant farm
Mixed family agriculture- consumption+sale
Modern farm- specialized and commercial farming
320RK 18
Economics of agricultural development: Transition process
Subsistence farming
Diversified or
mixed farming
Specialized, modern commercial farming
320RK 19
Subsistence farming: Risk aversion and uncertainty
Small farmer attitudes toward risk: Exploding the myth of irrational producers
320RK 20
Subsistence farming: Risk aversion and uncertainty
320RK 21
Crop yield of different farming techniques
320RK 22
Incentives under share cropping
320RK 23
Sharecropping and interlocking factor markets
Sharecropping occurs when a peasant farmer uses the landowner’s farmland in exchange for a share of food output which the peasant farmer grows.
Is share cropping inefficient? Marshall’s observations Cheung’s findings Shaban’s study Hayam’s findings Recent approach to share cropping in the event of
interlocking factor markets
320RK 24
Sharecropping and interlocking factor markets
Interlocking factor markets occur when different inputs are provided by the same suppliers and these suppliers exercise monopolistic or oligopolistic control over resources.
Case study of Sharecropping and Constraints on Agrarian Reform: India at http://wps.aw.com/aw_todarosmit_econdevelp_8/0,6111,284582-,00.html
320RK 25
Land Reform: Is it inevitable for tenant’s welfare
Land reform means the redistribution of property or land rights for the benefit of the landless, tenants, and farm laborers. Agrarian reform embraces improvements in both land tenure and agricultural organization. Types of land reform intervention:
Land tenure reform External inducements or market based
incentives External controls Confirmation of title
320RK 26
Land Reform: Is it inevitable for tenant’s welfare
Land reform means the redistribution of property or land rights for the benefit of the landless, tenants, and farm laborers. Agrarian reform embraces improvements in both land tenure and agricultural organization. Types of land reform intervention:
Land tenure reform External inducements or market based
incentives External controls Confirmation of title
320RK 27
Land Reform: Inevitable for Tenant’s WelfarePoints for discussion:
What is the case for equitable land distribution?
Are big farms more efficient? Design of a land reform
Should land reform be a permanent, one-shot reform? (revolutionary) Should landlords be compensated? (evolutionary)
Alternatives to traditional land reform Market assisted land reform Tenancy reform
320RK 28
Land reforms Additional material:
Land Reforms: Prospects and Strategies byAbhijit V. Banerjee, Massachusetts Institute of Technology at http://lnweb18.worldbank.org/ESSD/essdext.nsf/24DocByUnid/86356E62C8A4329385256B9F0053E7F7/$FILE/landreform.pdf
You may like to use the points for discussion to go through the paper or rely on your class notes.
320RK 29
Toward a strategy of agricultural and rural
development Improving small-scale agriculture
Technology and innovationInstitutional and pricing policiesSupportive social institutions
Conditions for rural developmentLand reform Supportive policiesIntegrated development objectives
Role of women in agriculture (case study applies to supportive policies and integrated RD as well)
Microfinance - Hope for the Poor: The Grameen Bank of Bangladesh at Microfinance at http://wps.aw.com/wps/media/objects/277/284582/todarocasestudies.pdf