Chapter17 Dev-10

Chapter17 Dev-10 - de Janvry and Sadoulet de Janvry and...

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de Janvry and Sadoulet 1 Chapter 17 Agriculture for Development Revised November 28, 2010 I. Agriculture for development Seen in a long historical perspective, it is well recognized that agriculture has been a (if not the) major development instrument for humanity. The Neolithic saw the birth of agriculture 10,000 years BC which supported the first boom in world population. An agricultural revolution was a precondition to almost every single successful industrial revolution. Dominance of Eurasian civilizations over others originated, according to Diamond (1998), in environmental endowments and technology supporting differentially high rates of productivity growth in agriculture. Recent success stories in accelerated growth in such countries as India, China, and Vietnam were importantly derived from the rapid growth of agriculture. Current failures to industrialize and grow in many parts of the world from Sub-Saharan Africa to Yemen and Haiti are in large part due to failure for these countries to first achieve significant gains in productivity in agriculture, a “Green Revolution”. Two observations underscore the heavy costs of the failure of agriculture to grow. One is that 75% of world poverty is located in rural areas and associated with the poor performance of agriculture. The other is the periodic return of global food crises that reflect the failure of agriculture to deliver enough produce to meet rising effective demand and to adjust to new production challenges. Growth failures in agriculture, and what it takes to induce successful agricultural growth, need to be understood. This is all the more important that the conditions for successful agricultural growth are both increasingly precarious (with rising land and water scarcity, as well as climate change) and markedly different today than they were in the past as a consequence of globalization, integrated food value chains, new technological and institutional innovations, and environmental stress. Not only does a better use need to be made of Take home messages for chapter 17 1. Agriculture is a key sector for development, with the capacity to make contributions to aggregate economic growth -- through product, factor, and market contributions --, poverty reduction, and the provision of environmental services. 2. The state of world agriculture shows that many countries have achieved success in using agriculture for development, ranging from the Western Experience, to the Asian Experience, and more recently to China and Vietnam. Yet, hunger is still with us and many countries have failed to use agriculture for development to its potential, most particularly Sub-Saharan Africa and India in the last 15 years. 3. This neglect of agriculture has been due to a variety of causes, but important among those has been
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This note was uploaded on 02/09/2011 for the course ECON c171 taught by Professor Alaindejanvry during the Fall '10 term at Berkeley.

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Chapter17 Dev-10 - de Janvry and Sadoulet de Janvry and...

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