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Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

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Page 1: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Chapter 9

Agricultural Transformation and Rural Development

Page 2: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-2

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

Page 3: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-3

Agricultural Stagnation and Growth Since 1950

Although agriculture employs the majority of the LDC labor force, it accounts for a much lower share of total output

Page 4: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-4

Table 9.1

Page 5: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-5

Agricultural Stagnation and Growth Since 1950

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

Page 6: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-6

Figure 9.1

Page 7: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-7

The Structure of Third World Agrarian Systems

Two kinds of world agriculture

Page 8: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-8

Table 9.2

Page 9: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-9

The Structure of Third World Agrarian Systems

Two kinds of world agriculture Peasant agriculture in Latin America, Asia,

and Africa– Latin America and Asia: similarities and

differences– The Latifundio–Minifundio pattern (see Table

9.4)

Page 10: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-10

Table 9.3

Page 11: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-11

Figure 9.2

Page 12: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-12

The Structure of Third World Agrarian Systems

Two kinds of world agriculture Peasant agriculture in Latin America, Asia, and

Africa– Latin America and Asia: similarities and differences– The Latifundio–Minifundio pattern

(see Table 9.4)– Fragmentation and subdivision of peasant land in Asia– Africa: extensive cultivation patterns

Page 13: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-13

Table 9.4

Page 14: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-14

The Important Role of Women

Women provide 60% to 80% of agricultural labor in Africa and Asia, and 40% in Latin America

Women work longer hours than men Government assistance programs tend to

reach men, not women

Page 15: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-15

The Economics of Agricultural Development: Transition From Peasant to Commercial Farming

Subsistence farming: risk aversion, uncertainty, and survival

Page 16: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-16

Figure 9.3

Page 17: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-17

Figure 9.4

Page 18: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-18

Figure 9.5

Page 19: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-19

The Economics of Agricultural Development: Transition From Peasant to Commercial Farming

Subsistence farming: risk aversion, uncertainty, and survival

The transition to mixed and diversified farming

From divergence to specialization: modern commercial farming

Page 20: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-20

Toward a Strategy of Agricultural and Rural Development

Improving small-scale agriculture Conditions for rural development

Page 21: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-21

Concepts for Review

Agrarian systems Cash crops Diversified farming Family farm Green revolution Integrated rural

development

Interlocking factor markets

Landlord Land reform Latifundio Medium-sized farms Minifundio Mixed farming

Page 22: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 9 Agricultural Transformation and Rural Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-22

Concepts for Review (cont’d)

Moneylender Patrón Per capita agricultural

production Per capita food

production Price bands Productivity gap

Scale-neutral Sharecropper Shifting cultivation Specialized farming Staple foods Subsistence farming Tenant farmer Transactions costs