Econ171-EEP151_Topic_13_Agriculture.pdf

Econ171-EEP151_Topic_13_Agriculture.pdf - Econ 171/EEP 151...

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Econ 171/EEP 151: Development Economics Topic 13-Agriculture David Roland-Holst University of California, Berkeley Tuesday, Thursday, 11-12:30 A1 Hearst Field Annex
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2 16 November 2017 Agriculture Agriculture in the World Economy: Overview Agriculture and Growth Agricultural Productivity Agriculture and Poverty The Neglect of Agriculture Agricultural Growth and Sustainability Share Cropping Land Reform Food Security, Famines, and Starvation
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3 16 November 2017 Agriculture and the World Economy Agriculture accounts for a small share of the world economy but remains central to the lives of a large fraction of the world. § Approximate 20% of world population engaged directly in farming (inc. small hunting/fishing/forestry sectors) representing only 2.8% of world income (World Bank 2012). § Huge variation: In India agriculture accounts for 54% of total employment and 18% of national income. § Half of the world’s population lives in rural areas (2010) and three- quarters of them depend upon agriculture. 75% of the 1.2 billion people with incomes less than 1 per day lived in rural areas relying on agriculture for livelihood. For this reason, improvements in agricultural productivity and growth are closely linked to overall economic growth and poverty reduction: § China’s economic liberalization in 1978 began with large improvements in agricultural productivity.
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4 16 November 2017 Shifting Locus of Production In 1961, global agricultural output was $746 billion (2004 prices) grown on 4.5 billion hectares using 768 million workers to feed 3 billion people. In 2011, global agricultural output was 2.4 trillion grown on 4.9 billion hectares of land for a population of 7 billion. In 1961 today’s high-income countries produced 44% of total agricultural output. The corresponding figure for 2011 is 24% even though their total production doubled. In 2009-2011, just 5 countries accounted for 42% of total cropland (Brazil, China, India, Russia and the U.S.) and more than 50% of total output. China alone produces 23% of all global output by value. In contrast, the 100 countries with the smallest shares made up less than 1% of total cropland.
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5 16 November 2017 Global Agricultural Production I
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6 16 November 2017 Global Agricultural Production II While agricultural output has grown generally, growth has been highly uneven across space and time. For high-income countries, agricultural output per capita has been flat since 1980. In contrast, Russia and the former Eastern European countries saw production collapse post 1989 and recovery is still incomplete. Sharp increases in Asia and the Pacific as well as Latin America and the Caribbean.
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7 16 November 2017 Global Production per Capita
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8 16 November 2017 Input Use I Massive increases in output made possible by improved inputs – seeds, fertilizers, machinery, irrigation.
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