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WMU ECON 3880 - Agricultural Transformation and Rural Development

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Chapter 99.1 The Imperative of Agricultural Progress and Rural Development9.2 Agricultural Growth: Past Progress and Current ChallengesFigure 9.1 As Countries Develop, the Shares of GDP and Labor in Agriculture Tend to Decline, but with Many IdiosyncrasiesFigure 9.2 Cereal Yields by World Region, 1960-20059.2 Agricultural Growth: Past Progress and Current Challenges (cont’d)Roles for Government in Agricultural Development9.3 The Structure of Agrarian Systems in the Developing WorldFigure 9.3 Agriculture’s Contribution to Growth and the Rural Share in Poverty in Three Types of CountriesTable 9.1 Land Productivity in Developed and Developing Countries9.3 The Structure of Agrarian Systems in the Developing World (cont’d)Table 9.2 Distribution of Farms and Farmland by Operational Farm Size and Land Tenure Status In Selected Developing Countries in Asia and Latin AmericaTable 9.3 Changes in Farm Size and Land DistributionSlide 14Slide 15Slide 169.4 The Important Role of WomenFigure 9.4 Expansion of Modern Inputs in the World’s Developing Regions9.5 The Microeconomics of Farmer Behavior and Agricultural DevelopmentFigure 9.5 Small-Farmer Attitudes toward Risk: Why It Is Sometimes Rational to Resist Innovation and ChangeFigure 9.6 Crop Yield Probability Densities of Two Different Farming TechniquesFigure 9.7 Incentives under Sharecropping9.5 The Microeconomics of Farmer Behavior and Agricultural Development (cont’d)Slide 249.6 Core Requirements of a Strategy of Agricultural and Rural DevelopmentConcepts for ReviewCopyright © 2012 Pearson Addison-Wesley. All rights reserved.Chapter 9Agricultural Transformation and Rural DevelopmentCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-29.1 The Imperative of Agricultural Progress and Rural Development•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•Three complementary elements of an agriculture – and employment-based strategy–Accelerated output growth–Rising domestic demand for agricultural output–Non-agricultural rural labor intensive rural development activities that are supported by the farming communityCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-39.2 Agricultural Growth: Past Progress and Current Challenges •Although agriculture employs the majority of the developing country labor force, it accounts for a much lower share of total output•Agricultural production is rising but unevenlyCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-4Figure 9.1 As Countries Develop, the Shares of GDP and Labor in Agriculture Tend to Decline, but with Many IdiosyncrasiesCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-5Figure 9.2 Cereal Yields by World Region, 1960-2005Copyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-69.2 Agricultural Growth: Past Progress and Current Challenges (cont’d)•Malnutrition and famine inspire calls for a new green revolution focused on Africa.•Food price spike of 2007-2008 partly due to short term factors but long term factors may herald return to persistently higher food prices in the years ahead. •New upward spike of prices by early 2011•The presence of market failures - and poverty alleviation goals – create need for constructive government role in agricultureCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-7Roles for Government in Agricultural Development•Environmental externalities•Agricultural research and extension services•Economies of scale in marketing•Informational asymmetries in product quality•Providing institutions and infrastructure•Ensure shared growth in agriculture sector•Addressing poverty trapsCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-89.3 The Structure of Agrarian Systems in the Developing World•Three systems of agriculture•Agriculture based countries, often subsistence, but agriculture makes up large part of growth•Transforming countries, most of world’s rural people, large % of poverty incidence found there, low contribution of agriculture to growth•Urbanized countries, half or more even of the poor found in urban areas•The trend is from agriculture-based, to transforming, to urbanized economies as illustrated with the cases of India, China, Indonesia, and Brazil in Fig. 9.3Copyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-9Figure 9.3 Agriculture’s Contribution to Growth and the Rural Share in Poverty in Three Types of CountriesCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-10Table 9.1 Land Productivity in Developed and Developing CountriesCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-119.3 The Structure of Agrarian Systems in the Developing World (cont’d)•Peasant Agriculture in Latin America, Asia, and Africa–Latin America and Asia: similarities and differences–The Latifundio–Minifun dio dualistic pattern in Latin America–The fragmented and heavily congested dwarf land holdings in Asia–Africa: extensive cultivation patternsCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-12Table 9.2 Distribution of Farms and Farmland by Operational Farm Size and Land Tenure Status In Selected Developing Countries in Asia and Latin AmericaCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-13Table 9.3 Changes in Farm Size and Land DistributionCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-149.3 The Structure of Agrarian Systems in the Developing World (cont’d)•Transforming Economies: Problems of Fragmentation and Subdivision of Peasant Land in Asia–Impact of colonial rule in strengthening land tenure systems of private property rights and the consequent rise of moneylenders –Contemporary landlordism in India and Pakistan involves absentee landlordism and persistence of sharecroppers and tenant farmers–Rapid population growth resulted in more fragmentation and peasant impoverishmentCopyright © 2012 Pearson Addison-Wesley. All rights reserved. 9-159.3 The Structure of Agrarian Systems in the Developing World (cont’d)•Agrarian Patterns in Latin America: Progress and Remaining Poverty Challenges–Apart from latifundios (large holdings) and minifundios (small farms) much production occurs on family farms and medium sized


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