theories of agricultural development

Theories of Theories of Agricultural Agricultural

DevelopmentDevelopmentA Lecture to Undergraduate Students

Pursuing Approaches to Rural Development Course (2015/2016)

ByMangasini A. Katundu (PhD)

Moshi Co-operative University, Tanzania

ObjectivesObjectives To outline various agricultural To outline various agricultural

development modelsdevelopment models To discuss their applicability in To discuss their applicability in

third world countriesthird world countries

The resource exploitation The resource exploitation modelmodel


For many years expansion in the areas For many years expansion in the areas cultivated or grazed has been the main means cultivated or grazed has been the main means of increasing agricultural productionof increasing agricultural production

Example is the opening up of new Example is the opening up of new lands/continents by westerners during 18lands/continents by westerners during 18thth and and 1919thth centuries centuries

These new lands became important sources of These new lands became important sources of food, markets and raw materials in Europefood, markets and raw materials in Europe


The model suggest that The model suggest that ““increase in agricultural production occurs increase in agricultural production occurs as a result of the expansion in area as a result of the expansion in area cultivated”cultivated”

The model assumes that The model assumes that

surplus land and labour capacity will enable surplus land and labour capacity will enable peasant producers to expand production peasant producers to expand production rapidly under the stimulus of new markets rapidly under the stimulus of new markets even if they will have poor technologyeven if they will have poor technology

Weaknesses of the modelWeaknesses of the model The model provides little insight into the The model provides little insight into the

problem of problem of

how to generate growth in land and how to generate growth in land and labour productivity when the slack labour productivity when the slack resulting from underutilized natural resulting from underutilized natural resources has been exhaustedresources has been exhausted

Weaknesses of the modelWeaknesses of the model The model has a limited applicability in The model has a limited applicability in

third word today as there are very few third word today as there are very few countries with surplus land and most of countries with surplus land and most of the surplus lands are unsuitable for the surplus lands are unsuitable for agricultureagriculture

Agricultural growth based on the model is Agricultural growth based on the model is not sustainable over the long runnot sustainable over the long run

Strength of the modelStrength of the model The model is applicable only in The model is applicable only in

those few areas where new lands those few areas where new lands are still availableare still available

The conservation The conservation modelmodel

The conservation modelThe conservation model Developed at the time of English Developed at the time of English

agricultural revolution of 18agricultural revolution of 18thth C C

Supported by English economists such as Supported by English economists such as Malthus, David Ricardo and John Stuart MillMalthus, David Ricardo and John Stuart Mill

The model is based on two assumptions:The model is based on two assumptions:

AssumptionsAssumptions

1: 1: the model assumes that land for the model assumes that land for agricultural production is scarce and agricultural production is scarce and becoming more sobecoming more so

2: it also assumes that soil exhaustion 2: it also assumes that soil exhaustion possible, and actions to prevent decreases possible, and actions to prevent decreases in yields or to increase land productivity will in yields or to increase land productivity will have only slow effect at besthave only slow effect at best

AssumptionsAssumptions The theory propose that,The theory propose that,

““as land scarcity increase, poorer land is used, as land scarcity increase, poorer land is used, causing the marginal productivity of labour and of causing the marginal productivity of labour and of land to decline”land to decline”

To forestall these declines, To forestall these declines, high priority should be given to maintaining soil high priority should be given to maintaining soil productivity at its present level/to return soil to its productivity at its present level/to return soil to its “original”“original”

Integrated crop-livestock husbandry is suggested, Integrated crop-livestock husbandry is suggested, because livestock will provide manuresbecause livestock will provide manures

Weaknesses of the modelWeaknesses of the model

1: in the last few decades the scope of 1: in the last few decades the scope of increasing productivity of land has increasing productivity of land has become much greater than was foreseen become much greater than was foreseen by classical economists. by classical economists. In developed nations increase in agric. In developed nations increase in agric. Prod. is due to yield increases with little Prod. is due to yield increases with little or no additional landor no additional land


2: the model usually does not recognize 2: the model usually does not recognize the contribution of industrially produced the contribution of industrially produced inputs such as chemical fertilizersinputs such as chemical fertilizers

3: the model has failed totally to recognize 3: the model has failed totally to recognize the past and potential impact of the past and potential impact of technological change on the demand for technological change on the demand for land in agricultureland in agriculture


4: perhaps the great weakness of the 4: perhaps the great weakness of the model is its noneconomic nature. model is its noneconomic nature.

The model generally measures land and The model generally measures land and productivity only in physical units productivity only in physical units

Strength of the modelStrength of the model It will be unfair to reject the theory as It will be unfair to reject the theory as

totally uselesstotally useless

Agricultural development within the Agricultural development within the framework of the conservation model has framework of the conservation model has been capable in many part of the world, been capable in many part of the world,

of sustaining rates of growth in agricultural of sustaining rates of growth in agricultural production in the range of 1.0% per year production in the range of 1.0% per year over long period of time e.g. China from over long period of time e.g. China from 1950s to 1960s.1950s to 1960s.

The location The location modelmodel

The location modelThe location model Initially formulated to explain geographic Initially formulated to explain geographic

variations in the location and intensity of variations in the location and intensity of agricultural production in an industrializing agricultural production in an industrializing economyeconomy

The major assumption here is that The major assumption here is that

““urbanization determines the location of urbanization determines the location of production of agricultural commodities and production of agricultural commodities and influences the techniques and intensity of influences the techniques and intensity of cultivation”cultivation”

AssumptionsAssumptions Specifically the model assumes that,Specifically the model assumes that,1: economic development occurs in a specific 1: economic development occurs in a specific

locational matrixlocational matrix2: these locational matrices are primarily 2: these locational matrices are primarily

industrial-urban in compositionindustrial-urban in composition3: the existing economic organization works 3: the existing economic organization works

best at or near the center of a particular best at or near the center of a particular matrix of economic development and it also matrix of economic development and it also works best in those parts of agriculture which works best in those parts of agriculture which are situated favorably in relation to such are situated favorably in relation to such center center

The modelThe model Suggests that,Suggests that,

““the agricultural countries/places the agricultural countries/places located closer to the market/urban located closer to the market/urban areas are characterized by higher areas are characterized by higher product prices, land values, and rates product prices, land values, and rates of land use”of land use”

Access to urban-industrial centers is Access to urban-industrial centers is also associated with machinery also associated with machinery investment per hectare and per man investment per hectare and per man but has little effect on other inputsbut has little effect on other inputs

Weaknesses of the modelWeaknesses of the model The model have limited application in poor The model have limited application in poor

countries where:countries where:1: a major problem is to initiate and 1: a major problem is to initiate and

accelerate economic growth at a sufficient accelerate economic growth at a sufficient rate to absorb the growing labour force rate to absorb the growing labour force rather than the geographic distribution of rather than the geographic distribution of economic activityeconomic activity

2: the technology necessary for rapid 2: the technology necessary for rapid agricultural growth is not availableagricultural growth is not available


3: the “pathological” growth of urban 3: the “pathological” growth of urban centers resulting from population inflow centers resulting from population inflow from rural areas is running in the demand from rural areas is running in the demand for nonfarm workersfor nonfarm workers

Strength of the modelStrength of the model However, where is some concern in However, where is some concern in

industrial location, industrial location, the model has much more significant the model has much more significant implications for agricultural developmentimplications for agricultural development

The diffusion The diffusion modelmodel

The diffusion modelThe diffusion model The model suggests thatThe model suggests that

The diffusion of better husbandry practices The diffusion of better husbandry practices and of crop and livestock varieties has been and of crop and livestock varieties has been a major source of productivity in agriculturea major source of productivity in agriculture

The route to agricultural development is, in The route to agricultural development is, in this view, this view, through more effective dissemination of through more effective dissemination of technical knowledge and a narrowing of technical knowledge and a narrowing of dispersion in productivity among individual dispersion in productivity among individual farmers and among regionsfarmers and among regions

The diffusion modelThe diffusion model Every intelligent farmer is an Every intelligent farmer is an

experimenter, no need for and experimenter, no need for and experimentation stationexperimentation station

An experiment station, which is An experiment station, which is necessarily constituted for scientific necessarily constituted for scientific research, cannot touch many of the most research, cannot touch many of the most vital problems of farmingvital problems of farming

Strength of the modelStrength of the model The model has provided the major The model has provided the major

intellectual foundation for much of the intellectual foundation for much of the research and extension efforts in farm research and extension efforts in farm management management and production economics since the and production economics since the emergence in 19emergence in 19thth c. of agricultural c. of agricultural economics as a separate sub-discipline economics as a separate sub-discipline linking agricultural sciences and linking agricultural sciences and economicseconomics

Weakness of the modelWeakness of the model

The model failed to generate either The model failed to generate either rapid modernization of traditional rapid modernization of traditional farms or rapid growth in agricultural farms or rapid growth in agricultural outputoutput

The high-pay off input The high-pay off input modelmodel

The high-pay off input The high-pay off input modelmodel

The model focuses on two aspects:The model focuses on two aspects:

1: how to create and provide to farmers the 1: how to create and provide to farmers the new, higher-payoff technology embodied new, higher-payoff technology embodied in capital equipment and other inputsin capital equipment and other inputs

2: how to increase the productivity of 2: how to increase the productivity of labourlabour

AssumptionsAssumptions The model suggests that, The model suggests that,

““economic growth from the agricultural economic growth from the agricultural sector of a poor country depends sector of a poor country depends predominantly upon the availability and predominantly upon the availability and price of modern high-pay off inputs ”price of modern high-pay off inputs ”

““When they succeed in producing and When they succeed in producing and distributing these factors (nontraditional) distributing these factors (nontraditional) agricultural factors (fertilizers, higher agricultural factors (fertilizers, higher yielding seeds, technology, human yielding seeds, technology, human resource) cheaply, investment in agriculture resource) cheaply, investment in agriculture becomes profitable”becomes profitable”

The modelThe model

Suggest that,Suggest that,““the key to transforming a traditional the key to transforming a traditional agricultural sector into a productive agricultural sector into a productive source of economic growth is investment source of economic growth is investment to make modern high-payoff inputs to make modern high-payoff inputs available to farmers in poor countries”available to farmers in poor countries”

The modelThe model Three types of higher-productivity Three types of higher-productivity

investmentinvestment1: agricultural experiment stations to 1: agricultural experiment stations to

produce new technical knowledgeproduce new technical knowledge

2: industrial sector to develop, produce, and 2: industrial sector to develop, produce, and market new technical inputsmarket new technical inputs

3: capacity of farmers to use modern 3: capacity of farmers to use modern agricultural factors effectivelyagricultural factors effectively

Strength of the modelStrength of the model The model has successfully contributed to The model has successfully contributed to

efforts of developing high-yielding modern efforts of developing high-yielding modern grain varieties suitable for tropics. e. g grain varieties suitable for tropics. e. g Mexico 1950s, Philippines 1960sMexico 1950s, Philippines 1960s

and rapid diffusion of the new varieties and rapid diffusion of the new varieties among farmers in several countries in Asia, among farmers in several countries in Asia, Africa, and Latin AmericaAfrica, and Latin America

Policies based on the model are appear Policies based on the model are appear capable of generating a sufficiently high rate capable of generating a sufficiently high rate of agricultural growth to provide basis for of agricultural growth to provide basis for overall economic development in line with overall economic development in line with modern population and income requirementsmodern population and income requirements

Weakness of the modelWeakness of the model The model is incomplete,The model is incomplete, The mechanism by which resources The mechanism by which resources

are allocated among education, are allocated among education, research, and other alternative public research, and other alternative public and private sector economic activities and private sector economic activities in not fully incorporated into the in not fully incorporated into the modelmodel

Thank youThank you

theories of agricultural development

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