CHAPTER 9 - Agricultural Transformation and Rural Development

Integrated rural development An agriculture- and employment- the population overall having access Transforming countries
- The broad spectrum of rural based strategy of economic to less than 2,100 kilocalories of food - which the share of the poor who are
development activities, including development requires three basic and 4 liters of water per day on rural is very high (almost 80% on
small-farmer agricultural progress, the complementary elements: average. average) but agriculture now
provision of physical and social (1) accelerated output growth through contributes only a small share to GDP
Famine - extreme scarcity of food; a
infrastructure, the development of technological, institutional, and price growth
great shortage.
rural nonfarm industries, and the incentive changes designed to raise
Urbanized countries
capacity of the rural sector to sustain the productivity of small farmers; Agricultural extension
- rural–urban migration has reached
and accelerate the pace of these - Demonstration and training services
(2) rising domestic demand for the point at which nearly half, or
improvements over time. for improving agricultural practices
agricultural output derived from an more, of the poor are found in the
and raising farm productivity.
Agriculture made four contributions employment-oriented, urban cities, and agriculture tends to
to economic development: development strategy; and Causes of low adoption contribute even less to output growth.
- include lack of knowledge;
1. the product contribution of (3) diversified, nonagricultural, labor- Agrarian system
- lack of access to markets;
inputs for industry such as intensive rural development activities - The pattern of land distribution,
- farmers’ inability to distinguish
textiles and food processing; that directly and indirectly support ownership, and management, and the
- genuine from counterfeit seeds,
2. the foreign-exchange and are supported by the farming social and institutional structure of the
fertilizer and other products on the
contribution of using community. agrarian economy
market;
agricultural export revenues
Green Revolution - credit constraints and uninsured Latifundio
to import capital equipment;
- The boost in grain production risks; - A very large landholding found
3. the market contribution of
associated with the scientific - problems of coordination with particularly in the Latin American
rising rural incomes that
discovery of new hybrid seed varieties neighbors. agrarian system, capable of providing
create more demand for
of wheat, rice, and corn that has employment for more than 12 people,
consumer products; Three Systems of Agriculture
resulted in high farm yields in many owned by a small number of
4. and the factor market (transition from subsistence to
developing countries. landlords, and comprising a
contribution, divided between commercial agriculture.)
disproportionate share of total
the labor and capital Famine
1. Agriculture-based countries agricultural land.
contribution - for international humanitarian and
2. Transforming countries
UN purposes as a combination of child
Capital contribution was misapplied 3. Urbanized countries
malnutrition, deaths from hunger, and Minifundio
as a “squeezing of the peasantry,” but
low food access, specifically: (1) more Agriculture-based countries - A landholding found particularly in
it meant investing first in agriculture
than 30% of children suffering from - agriculture is still a major source of the Latin American agrarian system
and later reaping profits that would be
acute malnutrition; (2) more than two economic growth—although mainly considered too small to provide
partially reinvested in industry.
adults or four children dying of hunger because agriculture makes up such a adequate employment for a single
each day per 10,000 people; and (3) large share of GDP family
 CHAPTER 9 - Agricultural Transformation and Rural Development
Family farm Tenant farmer Three broad stages in the evolution Sharecropping
- A farm plot owned and operated by a - One who farms on land held by a of agricultural production - occurs when a peasant farmer uses
single household. landlord and therefore lacks the landowner’s farmland in exchange
1. The first stage is the pure,
ownership rights and must pay for the for a share of food output, such as half
- provide work for two to four people low-productivity, mostly
use of that land, for example, by giving of the rice or wheat grown.
subsistence-level traditional
Medium-size farm a share of output to the owner.
(peasant) farm - The landlord’s share may vary from
- A farm employing up to 12 workers.
Moneylender 2. The second stage is what less than a third to more than two-
Transaction costs - A person who lends money at high might be called diversified or thirds of output, depending on local
- Costs of doing business related to rates of interest, for example to mixed family agriculture labor availability and the other inputs
gathering information, monitoring, peasant farmers to meet their needs 3. The third stage represents the (such as credit, seeds, and tools) that
establishing reliable suppliers, for seeds, fertilizers, and other inputs. modern farm, exclusively the landlord provides
formulating contracts, obtaining engaged in high-productivity,
Subsistence farming - represents a compromise between
credit, and so on specialized agriculture geared
-Farming in which crop production, the risk to the landlord that the tenant
to the commercial market.
Three major interrelated forces that stock rearing, and other activities are will not do much work and the risk to
molded the traditional pattern of conducted mainly for personal Staple food the tenant that a fixed rent will in
land ownership into its present consumption - A main food consumed by a large some years leave him no income.
fragmented condition: portion of a country’s population.
Shifting cultivation Interlocking factor markets
(1) the intervention of European rule, - Tilling land until it has been Why traditional (peasant) farmers - Factor markets whose supply
exhausted of fertility and then moving have apparently not responded to an functions are interdependent,
(2) the progressive introduction of to a new parcel of land, leaving the “obvious” economic opportunity frequently because different inputs
monetized transactions and the rise in former one to regain fertility until it are provided by the same suppliers
power of the moneylender (1) the landlord secured much if not
can be cultivated again who exercise monopolistic or
all the gain
(3) the rapid growth of Asian - is the most economic method of oligopolistic control over resources.
populations. using limited supplies of labor on (2) the moneylender captured the
Diversified (mixed) farming
extensive tracts of land. profits
Landlord - The production of both staple crops
- The proprietor of a freehold interest Cash crops (3) the government’s “guaranteed” and cash crops and simple animal
in land with rights to lease out to - Crops produced entirely for the price was never paid husbandry typical of the first stage in
tenants in return for some form of market the transition from subsistence to
(4) complementary inputs (fertilizers, specialized farming.
compensation for the use of the land.
pesticides, assured supplies of water, - can also minimize the impact of
Sharecropper adequate nonserious credit, etc.) were staple crop failure and provide a
- A tenant farmer whose crop has to never made available or their use was security of income previously
be shared with the landlord, as the otherwise more problematic than unavailable
basis for the rental contract. outsiders understood.
 CHAPTER 9 - Agricultural Transformation and Rural Development
Specialized farm Scale-neutral Three conclusions regarding the (d) the capacity of the rural sector to
- represents the final and most - Unaffected by size; applied to necessary conditions for the sustain and accelerate the pace of
advanced stage of individual holding technological progress that can lead to realization of a people-oriented these improvements over time
in a mixed-market economy the achievement of higher output agricultural and rural development
levels irrespective of the size (scale) of strategy
Specialized farming
a firm or farm. Technologies that can be
- The final and most advanced stage of applied on both large farms 1. Land Reform
the evolution of agricultural Land Grabbing or small farms 2. Supportive Policies
production in which farm output is - the growing activity of foreign 3. Integrated Development
produced wholly for the market investment in developing-country Objectives
farmland
- the provision of food for the family Rural development, though
with some marketable surplus is no Land reform - A deliberate attempt to dependent primarily on small-farmer
longer the basic goal. Instead, pure reorganize and transform agrarian agricultural progress, implies much
commercial profit becomes the systems with the intention of fostering more. It encompasses:
criterion of success, and maximum a more equal distribution of
(a) efforts to raise both farm and
per-hectare yields derived from agricultural incomes and facilitating
nonfarm rural real incomes through
synthetic (irrigation, fertilizers, rural development
job creation, rural industrialization,
pesticides, hybrid seeds, etc.) and
-is often proposed as a necessary first and other nonfarm opportunities and
natural resources become the object
condition for agricultural development the increased provision of education,
of farm activity. Production, in short, is
in many developing countries. health and nutrition, housing, and a
entirely for the market.
variety of related social and welfare
-usually entails a redistribution of the
Three types of farms services
rights of ownership or use of land
1. Subsistence away from large landowners in favor (b) a decreasing inequality in the
2. Mixed of cultivators with very limited or no distribution of rural incomes and a
3. Specialized Commercial landholdings. It can take many forms: lessening of urban–rural imbalances in
the transfer of ownership to tenants incomes and economic opportunities
Technology and Innovation
who already work the land to create
- In most developing countries, new (c) successful attention to the need for
family farms
agricultural technologies and environmental sustainability—limiting
innovations in farm practices are the extension of farmland into
preconditions for sustained remaining forests and other fragile
improvements in levels of output and areas, promoting conservation, and
productivity. preventing the harmful misuse of
agrochemicals and other inputs