A longstanding question in world politics is how to help the Third World develop. According to observers, growth in agricultural productivity is central to industrialisation and development.
Industrialisation is a key component of development. However, industrial development takes time to occur. A country that began to industrialise in 1950 won’t achieve true industrial stability until roughly 100 years later. To reach economic stability, agricultural productivity is crucial.
Examining data for the period 1960 to 1990 for 62 countries defined as developing by the Food and Agriculture Organisation (FAO) of the United Nations, researchers demonstrate the importance of agricultural productivity. The article finds that:
Researchers found the sector shifts caused by increased agriculture productivity represents 29 percent of GDP growth. It also explains the poverty of many nations low agricultural productivity.
This has clear implications for the Western world’s agricultural policy, observers say. By subsidising their already superior farming systems, Western governments are preventing the Third World from lifting itself out of poverty.
Source: Douglas Gollin, Stephen Parente, and Richard Rogerson. The Role of Agriculture in Development, American Economic Review. Volume 92, Number 2. May 2002.
For more on Third World Economic Growth http://www.ncpa.org/iss/int
FMF Policy Bulletin\15 August 2002
