Can economic progress and agricultural development occur simultaneously

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Is there any progress on agricultural development?

There has been strong progress on country and state-level agricultural development plans throughout the world, but we believe there are still large opportunities for improvement, as described in the first part of this article.

Why should the process of economic development begin for agricultural sector?

As a matter of fact, if the process of economic development is to be initiated and made self-sustaining, it must begin for agricultural sector. Role of Agriculture in Economic Development:

Will continuing income growth take agriculture back into disarray in developing countries?

A key question is whether continuing income growth in developing countries will take agriculture back into the disarray it experienced in the 1970s, 1980s, and 1990s. Notably, the growth in trade resulting from income growth will generally not be in the core staples, about which developing-country policy makers tend to be extremely sensitive.

How does agriculture affect the growth rate of the economy?

If agriculture fails to meet the rising demand of food products, it is found to affect adversely the growth rate of the economy. Raising supply of food by agricultural sector has, therefore, great importance for economic growth of a country. Increase in demand for food in an economy is determined by the following equation:

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What is the relationship between agricultural development and economic development?

Agricultural development makes a critical contribution to overall economic growth in many developing countries. As farmers’ incomes rise, so does their demand both for farm inputs and services, and for non-farm goods. Increased agricultural production also leads to increased demand for processing facilities.


What are the relationship between agriculture and economics?

Agricultural economics plays a role in the economics of development, for a continuous level of farm surplus is one of the wellsprings of technological and commercial growth. In general, one can say that when a large fraction of a country’s population depends on agriculture for its livelihood, average incomes are low.


How does agriculture impact the economy and development?

Agriculture, food, and related industries contributed $1.055 trillion to the U.S. gross domestic product (GDP) in 2020, a 5.0-percent share. The output of America’s farms contributed $134.7 billion of this sum—about 0.6 percent of GDP.


What are the connections between economic progress and development?

Economic growth brings quantitative changes in the economy. Economic growth reflects the growth of national or per capita income. Economic development implies changes in income, savings and investment along with progressive changes in socio- economic structure of country (institutional and technological changes).


What is the interrelationship between agriculture and development of society?

Agriculture and industries are interdependent i.e. they depend on each other. In other words, they both help each other and without one, the other cannot develop. Agriculture helps various industries by providing them raw materials, labour, a market for their goods and also food for workers in the industrial sector.


Why is agriculture important to the economy?

IMPORTANCE OF AGRICULTURAL EXPORTS America’s farmers and ranchers make an important contribution to the U.S. economy by ensuring a safe and reliable food supply, improving energy security and supporting job growth and economic development.


What happens to the share of agriculture in total economic activity as a country develops economically?

As economic development proceeds, the share of agriculture in GDP and total employment changes being high but declining in developing countries, and low but more stable in developed countries.


Why agriculture is considered as the backbone of the economy?

Agriculture makes its contribution to economic development in following ways: By providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the …


What is the difference between rural development and agricultural development?

“Agricultural Development” mainly aims at increasing agricultural products such as crops, livestock, fish and etc. Human being, land and capital are simply regarded as production goods and means. On the other hand, “Rural Development” mainly targets on people and institutions.


Can you have economic growth without economic development?

Having economic growth without economic development is possible. Economic growth in an economy is demonstrated by an outward shift in its Production Possibility Curve (PPC). Another way to define growth is the increase in a country’s total output or Gross Domestic Product (GDP).


What is the difference between economic progress and economic development?

However, the two concepts are different. While economic growth is a quantitative concept, economic development is a qualitative concept….What is Economic Development?Economic GrowthEconomic DevelopmentShort-term processLong-term processMeasurementQuantitativeBoth quantitative and qualitativeApplicable to14 more rows


Do the two forms economic growth and economic development mean the same thing?

No, Economic growth and Economic development are distinct and different in terms of their contents and coverage. Economic growth can be defined as a process whereby a country’s real national income increases over a long period of time. In other words it is concerned with increase in national income.


How does agriculture contribute to development?

Agriculture plays a very role in development. Contributes in many consumer goods like oil, clothing, etc. Further food grains are very important for underdeveloped economies. In case of shortage of food, it helps a lot in developing countries as the mass import is not possible and economically feasible for them.


How does agriculture stimulate industrial expansion?

Stimulates industrial expansion: Expansion in the agriculture sector also led to the expansion of the industrial sector. When agriculturalists have savings, they can buy consumer goods, invest in industries too. This results in an indirect expansion of the industrial sector.


Why is the release of surplus manpower from the agricultural sector necessary?

Consequently, the release of surplus manpower from the agricultural sector is necessary to advance the agricultural sector and to extend the non-agricultural sector. Supply of Food and Raw Materials: Feeds the requirement of industrialization. Agriculture plays a very role in development. Contributes in many consumer goods like oil, clothing, etc.


How does Indian agriculture create employment opportunities?

Creates employment opportunities: Indian agriculture gives employment and work to a vast majority of the people to the rural crowd. In rural and backward areas, almost 70% of the masses earn their livelihood from cultivation and allied agro-industries.


Why is capital formation important?

Resources for Capital Formation: This is all more important because with the existing modern capitalist sector being small, there is little that can come from this sector by way of surpluses or profits for investments. On the other hand, agriculture, as is the case in India, is a big sized sector.


How much does agriculture contribute to the economy?

As we know that agriculture contributes almost 16% to the national income of the economy, there will be savings from the agriculturalist and it will lead to capital formation. The livestock viz. cattle, buffaloes, sheep, goats, horses, ponies, etc. also have its food from agriculture.


Why is Indian agriculture weak?

Inadequate irrigation facilities: One of the main reasons for the weakness of Indian agriculture has been the lack of irrigation facilities in the country. The farmers have to depend upon rainfall and very few of them can avail the facilities of irrigation systems.


What is the development of agriculture?

The development of agriculture requires roads, market yards, storage, transportation railways, postal services and many others for an infrastructure creating demand for industrial products and the development of commercial sector.


What will happen to agriculture as a result of industrialization?

As a result of agricultural progress, there will be extension of market for industrial products. Increase in agricultural productivity leads to increase in the income of rural population which is turn leads to more demand for industrial products, thus development of industrial sector.


How does rural economy affect social welfare?

The rising agricultural surplus caused by increasing agricultural production and productivity tends to improve social welfare, particularly in rural areas. The living standard of rural masses rises and they start consuming nutritious diet including eggs, milk, ghee and fruits. They lead a comfortable life having all modern amenities—a better house, motor-cycle, radio, television and use of better clothes.


What is the role of agriculture in the economy?

Agricultural sector plays a strategic role in the process of economic development of a country. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. ADVERTISEMENTS: In other words, where per capita real income is …


Why is agriculture important?

Agriculture is the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed. Due to heavy pressure of population in underdeveloped and developing countries and its rapid increase, the demand for food is increasing at a fast rate.


What happens to agricultural production during a depression?

During depression, industrial production can be stopped or reduced but agricultural production continues as it produces basic necessities of life. Thus it continues to create effective demand even during adverse conditions of the economy.


Why is agricultural advancement important?

Agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level.


What is the meaning of “agriculture”?

agriculture. Noun. the art and science of cultivating land for growing crops (farming) or raising livestock (ranching). annual plant. Noun. plant with a life cycle of no more than one year, and often much less. barley. Noun. grass cultivated as a grain.


What was the farming revolution?

Taking root around 12,000 years ago, agriculture triggered such a change in society and the way in which people lived that its development has been dubbed the ” Neolithic Revolution.”. Traditional hunter-gatherer lifestyles, followed by humans since their evolution, were swept aside in favor of permanent settlements …


What mutation occurred during the spread of farming into southeastern Europe?

But at some point during the spread of farming into southeastern Europe, a mutation occurred for lactose tolerance that increased in frequency through natural selection thanks to the nourishing benefits of milk.


What were the effects of the ice age on the Near East?

In the Near East, for example, it’s thought that climatic changes at the end of the last ice age brought seasonal conditions that favored annual plants like wild cereals. Elsewhere, such as in East Asia, increased pressure on natural food resources may have forced people to find homegrown solutions.


Where did the wild produce originate?

The wild progenitors of crops including wheat, barley and peas are traced to the Near East region. Cereals were grown in Syria as long as 9,000 years ago, while figs were cultivated even earlier; prehistoric seedless fruits discovered in the Jordan Valley suggest fig trees were being planted some 11,300 years ago. Though the transition from wild harvesting was gradual, the switch from a nomadic to a settled way of life is marked by the appearance of early Neolithic villages with homes equipped with grinding stones for processing grain.


When did rice and millet farming start?

The origins of rice and millet farming date to around 6,000 B.C.E.


When was rice first grown?

The origins of rice and millet farming date to around 6,000 B.C.E. The world’s oldest known rice paddy fields, discovered in eastern China in 2007, reveal evidence of ancient cultivation techniques such as flood and fire control.


How does economic growth affect agriculture?

Economic growth can be expected to allow improvements in infrastructure, and particularly rural infrastructure, that can have important impacts on agricultural production. These effects are challenging to estimate because economic growth facilitates investment both by stimulating demand and potentially by reducing financing constraints and because infrastructure can promote economic growth (Aschauer, 1989 ). Transportation infrastructure is particularly important for agriculture because of agriculture’s geographically dispersed nature. Because government coordination—and sometimes management—are involved, it is important to have ways to identify the benefits and costs of specific transport investments.


What are the implications of agricultural economics?

Even for those agricultural economists not focused on development, however, there are important implications for outcomes such as global demand, supply and prices of agricultural products, environmental impacts, agricultural marketing, trade patterns, and policy.


What is the most dramatic change in food marketing in developing countries?

Perhaps the most dramatic change to food marketing in developing countries in recent years has been the shift from traditional marketing channels to supermarkets. Reardon, Timmer, and Minten ( 2012) pointed to the dramatic growth of supermarkets since 1990. They identified a first wave of this process in Latin America, Central Europe, and South Africa that took the share of food sold through supermarkets from under 5% to over 50% by the mid-2000s. A second wave of growth in supermarket sales that started in the mid-1990s in Southeast Asia, Central America, and Mexico took retail shares to 30–50% by the mid-2000s. The third wave, in China, Viet Nam, India, and Russia, began in the late 1990s. Barrett, Riordan, Swinnen, and Zilberman ( 2019) provide a detailed analysis of the changes in marketing chains for food and their economic implications.


What has income growth contributed to?

Meanwhile, income growth in many developing countries has contributed to a reduction, on average, of agricultural taxation and a level of average protection that is now in line with the industrial countries.


What is the sharp increase in growth rates in many developing countries since 1990?

The sharp increase in growth rates in many developing countries since 1990 is unprecedented in the 200 years since the Industrial Revolution began. This growth has generally not taken the form of unconditional income convergence, with the lowest income countries growing faster than higher income countries.


What were the policies of the industrial and developing countries in the 1950s?

By the 1950s, there was a sharp distinction between the policies of the industrial and developing countries. Most rich countries protected their agricultural sectors, although this was more difficult for exporters than for importers. They often used administered prices, backed by storage and variable trade barriers, to stabilize their markets while transferring volatility onto world markets. Developing countries typically taxed agriculture to keep food prices down and to raise revenues. Many colonies and newly independent countries focused on food availability and used export bans or state imports to ensure availability. The agricultural policies of the developed countries enjoyed so much support in the 1950s that the disciplines against the use of quantitative restrictions were eliminated in 1955 at the request of the United States (Zietz & Valdés, 1988 ).


What has the rapid growth of developing countries since the early 1990s influenced?

The much more rapid growth of developing countries since the early 1990s has also influenced the relative importance of developed and developing countries and the direction of trade. To look at these changes, we begin in 1993 in order to exclude the immediate effects of the breakup of the Soviet Union.


Why is agriculture important in economic development?

The role of agriculture in economic development is crucial because a majority of the population of developing countries make their living from agriculture. We explain below the role of agriculture in detail and point out in what ways agriculture can …


What happens if agricultural productivity does not rise?

If agricultural productivity does not rise the marketable surplus for industrial growth has been obtained by some countries through coercion as was the case in Japan at the time of Meiji Restoration (1869) when through compulsory taxation marketable surplus was extracted from the farmers.


How does agriculture help in eradicating poverty?

In any strategy of eradication of poverty agricultural growth plays an important role. Agricultural growth raises the productivities and incomes of small and marginal farmers, and raises and employment and wages of agricultural workers. With this, it helps to reduce poverty and disguised unemployment.


How can agriculture be used to help industrial growth?

Agriculture can also be a major source of saving or capital for industrial growth of developing countries. Even, in poor developing countries, as income from agriculture is unequally distributed, rural people with high incomes can invest their savings for industrial development. In Britain at the time of industrial revolution rich landlords voluntarily invested some of their savings in growing industries. Besides, small farmers can deposit their small savings in banks operating in the rural areas and then these banks can provide loans to the industrialists for investment purposes.


What is the market contribution of agriculture?

The market contribution of agriculture means the demand for industrial products. In the earlier stages of development when urban sector is very small and markets for exports have not yet been found, agricultural sector of developing countries is a major source of demand or market for industrial products.


Why is agriculture taxed in Japan?

In Japan a tax on agriculture was levied to mobilise savings for capital accumulation. In India land revenue from agriculture has been a negligible source of State income. A committee headed by late Dr K.N. Raj recommended ‘Agricultural Holding Tax’ to mobilise savings from agriculture for economic development.


Why is there stagnation in the industrial sector?

In India it has been found that whenever there is sluggish or negative agricultural growth, there is stagnation in the industrial sector due to lack of demand for the industrial products.


How does change affect agriculture?

For example, improvements in agricultural extension and seed systems might enable farmers to switch to a more productive hybrid seed, but lack of access to fertilizer (upon which the hybrid depends) could prevent productivity increases and leave the farmer unwilling to buy hybrid seed next time. As in any complex economic system, when so many elements are interrelated, any one of them can become a constraint and stall progress.


Which countries have doubled their agricultural output?

Recent examples include Brazil, China, and Vietnam, each of which at least doubled the value of its agriculture sector within 20 years of starting its transformation. Many other countries in Africa, Asia, and Latin America are earlier on the path of transformation.


How does a PMO help in agricultural transformation?

Our experience suggests that creating a project management office (PMO) can greatly increase the chances of carrying out a successful large-scale change program. A PMO can concentrate talent, monitor implementation, act as a source of truth, and, in general, help get things done. The office can apply accepted project management technologies to break the transformation into discrete initiatives, each with specific goals, timing, and responsibility. A PMO is also charged with engaging relevant stakeholders when problems arise.


What are the SDGs for agriculture?

In addition to traditional economic development and poverty reduction goals, governments are also focusing their agricultural transformation plans on Sustainable Development Goals (SDGs) by considering, for example, climate-smart strategies, women’s economic empowerment, and biodiversity.


Why should policy makers invest in data and analytics?

Policy makers should invest in making use of existing data and analytics to comparatively assess the costs and likely outcomes of different potential transformation programs. Policy makers also need to use data and analytics to set reasonable targets and redirect programs where outcomes are not meeting targets.


What do farmers do in developing countries?

Farming households in developing countries balance a portfolio of crops, livestock, and nonfarm work. Because they feed their families with some of the farm output as well as sell into markets, they make decisions based on their potential profit, risk, and cash flow across family food consumption as well as sales.


What are the goals of government?

Governments work toward a number of different goals, including growth in agro-processing, reduced unemployment, lower poverty incidence, food self-sufficiency, economic growth, increased exports, or lower rates of malnutrition.


Why can’t we abandon economic development?

A reason that we cannot abandon economic development is that most people in the developed world like the way they live and will not give up their way of life. Asking them to do so dooms environmental advocates to political marginalization and failure.


Why do some people believe the environment must be sacrificed for economic growth?

Sloppy management, the hunger for easy money and short-term profits, and ideological rigidity lead some to believe the environment must be sacrificed for economic growth. The belief that capitalism is evil and inevitably causes environmental destruction leads others to believe that sustainable economic development is not feasible.


What are some activities that contribute to GDP?

Going to a gym, riding a bike or eating a salad are all activities that add to the GDP. But so does taking your private jet to your ski lodge, driving in your SUV to the ski slopes, and eating a steak. All consumption behaviors are not created equal and do not have the same impact on environmental sustainability.


Which cities have larger economies in 2020?

And both Los Angeles and New York City have larger economies in 2020 than they had in 1980. In case you believe this progress was due to deindustrialization, the two largest sources of air pollution are power plants and motor vehicles and we have many more of them today than we had in 1980.


Can economic growth cause environmental damage?

Economic Growth and Environmental Sustainability. There are political and business leaders who do not care if economic growth causes environmental damage and there are environmental advocates who do not believe you can have economic growth without causing environmental damage. In a New York Times piece on the climate and economics discussions …


Do consumption behaviors have the same impact on sustainability?

All consumption behaviors are not created equal and do not have the same impact on environmental sustainability. More sustainable lifestyles are emerging and they can be detected in consumption patterns. For example, young Americans seem less interested in owning cars than their older siblings and parents did.


Is capitalism incompatible with environmental protection?

There is nothing incompatible with capitalism and environmental protection as long as rules are in place that control the environmental impacts of the products and services we make and use. With those rules in place, a concern for environmental sustainability can and will permeate everyday decision-making in the private, …

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Introduction


Role of Agriculture in Economic Development

  1. Stimulates industrial expansion: Expansion in the agriculture sector also led to the expansion of the industrial sector. When agriculturalists have savings, they can buy consumer goods, invest in i…
  2. Providing employment: When there is an increase in the agriculture sector, its production, more employment opportunities will also be generated.  Direct employment in the crop raising,  agri…
  1. Stimulates industrial expansion: Expansion in the agriculture sector also led to the expansion of the industrial sector. When agriculturalists have savings, they can buy consumer goods, invest in i…
  2. Providing employment: When there is an increase in the agriculture sector, its production, more employment opportunities will also be generated.  Direct employment in the crop raising,  agriculture…
  3. Resources for Capital Formation: This is all more important because with the existing modern capitalist sector being small, there is little that can come from this sector by way of surpluses or pro…
  4. Supply of Foreign Exchange: Agriculture can contribute a great deal in earning foreign curren…


Place of Agriculture in The Indian Economy

  1. The major source of livelihood: One of the major sources of livelihood is agriculture. More than 70% of the rural Indian people depend on agricultural activities in one sense or the other for their…
  2. Increase in foreign trade: Agriculture in India plays an important role in the enhancement of international trade. The commodities which are exported from India are oil cakes, tea, vegeta…
  1. The major source of livelihood: One of the major sources of livelihood is agriculture. More than 70% of the rural Indian people depend on agricultural activities in one sense or the other for their…
  2. Increase in foreign trade: Agriculture in India plays an important role in the enhancement of international trade. The commodities which are exported from India are oil cakes, tea, vegetables, and…
  3. Creates employment opportunities: Indian agriculture gives employment and work to a vast majority of the people to the rural crowd. In rural and backward areas, almost 70% of the masses earn their…
  4. More capital investment:  In today’s world modern agricultural equipment is used for cultivati…


Loopholes in Carrying Out Agricultural Activities

  1. Poor inputs and techniques: The techniques and methods of cultivation have been old and inefficient. It results in a high cost of production and low productivity. These methods have not undergone a…
  2. Inadequate irrigation facilities: One of the main reasons for the weakness of Indian agriculture has been the lack of irrigation facilities in the country. The farmers have to depend upon rainf…
  1. Poor inputs and techniques: The techniques and methods of cultivation have been old and inefficient. It results in a high cost of production and low productivity. These methods have not undergone a…
  2. Inadequate irrigation facilities: One of the main reasons for the weakness of Indian agriculture has been the lack of irrigation facilities in the country. The farmers have to depend upon rainfall…
  3. Indebtedness of the farmers: There is an old saying that the farmers in India are born in debt, live in debt and bequeath debt. The reasons for their indebtedness are many such as hereditary debt,…
  4. Low adoption of improved technology: The adoption of high yielding varieties (HYV) is very ra…


Progress of Indian Agriculture

  1. Government Measures: Through the five-year plans, the government of India has played an active role in the development of agriculture. Proper objectives have been laid down in the various plans. Ac…
  2. Expanding Government’s Role: From the first five-year plan, the government realized that for the development of agriculture, the government has to play an important role which would b…
  1. Government Measures: Through the five-year plans, the government of India has played an active role in the development of agriculture. Proper objectives have been laid down in the various plans. Ac…
  2. Expanding Government’s Role: From the first five-year plan, the government realized that for the development of agriculture, the government has to play an important role which would be a crucial on…
  3. Laudable objectives: The objectives of different plans are varied from time to time. Somewhere the aim was to increase productivity and elsewhere to improve the quality of food grains. Land reforms…
  4. Appropriate measures: In order to achieve these objectives many measures have been taken …


Conclusion

  • Agriculture is the Indian economy’s most important sector. India’s farm sector is the largest industry. Approximately 70 per cent of people in India are either farmers as a vocation or as workers. The share of GDP is just 18 per cent. But it provides employment for around 50 per cent of the workforce in the country. It provides food in India for about 135 crore people. India has be…

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