Agricultural Transformation and Rural Development Pertemuan 6 Matakuliah : <<EKONOMI PEMBANGUNAN>> Tahun : <<2009>> Agricultural Transformation and Rural Development Pertemuan 6

It is in the agricultural sector that the bottle for long–term economic development will be won or lost (Gunnar Myrdal, Nobel Laureate in Economics) The main burden of development and employment creation will have to be borne by the part of the economy in which agriculture is the predominant activity, that is, the rural sector (Francis Blanchard, Director General, ILO) Bina Nusantara University

Material Outline Transition from peasant subsistence to specialized commercial farming Issues on environment and development Urban development and the environment Policy options in developing and developed countries Bina Nusantara University

Transition from peasant subsistence to specialized Commercial Farming Subsistence farming: risk aversion, uncertainty, and survival Sharecropping and interlocking factor markets The transition to mixed and diversified farming From divergence to specialization : modern commercial farming Bina Nusantara University

Bina Nusantara University

Bina Nusantara University

Toward a strategy of agricultural and rural development: some main requirements Sources of small – scale Agricultural Progress - Technological change and innovation - Appropriate government economic policies - Supportive social institutions Conditions for general rural advancement : - Modernizing farm structures to meet rising food demands - Creating an effective supporting system - Changing the rural environment to improve levels of living. Bina Nusantara University

Improving Small – scale Agriculture Technology and innovation Institutional and pricing policies : providing the necessary economic incentives Bina Nusantara University

Conditions for rural development Land reform Supportive policies Integrated Development Objectives Bina Nusantara University

Environment and Development: The basic issues The concept of sustainable development, and linkage between the environment Population, resources, and the environment Poverty and the Environment Economic growth versus the environment Rural development and the environment Urban development and the environment The global environment Bina Nusantara University

Urban Development and the Environment The ecology of urban slums Industrialization and urban air population Problems of congestion and the availability of clean water and sanitation Bina Nusantara University

Policy Options in Developing and Developed Countries What less developed countries can do 1) Proper resources pricing 2) Community involvement 3) Clearer property rights and resource ownership 4) Programs to improve the economic alternatives of the poor 5) Raising the economic status of woman 6) Industrial emission abatement policies Bina Nusantara University

Policy options in developing and developed countries How developed countries can help LDCs Trade policies/trade liberalization Debt relief Financial and technological assistance (development assistance) Bina Nusantara University

Policy options in developing and developed countries What developed countries can do for the global environment: 1) Emission controls (reduce harmful emissions) 2) Research and development (develop clean technologies for themselves and for LDCs 3) Import restrictions ( alter their own environmentally harmful patterns of demand) Bina Nusantara University