1. Chapter 10 Slide 1 Copyright © 2003 Pearson Education, Inc.

2. Chapter 10 Slide 2 Copyright © 2003 Pearson Education, Inc. Agricultural Transformation and Rural Development Chapter 10

3. Chapter 10 Slide 3 Copyright © 2003 Pearson Education, Inc. The Imperative of Agricultural Progress and Rural Development n The heavy emphasis in the past on rapid industrialization may have been misplaced n Agricultural development is now seen as an important part of any development strategy

4. Chapter 10 Slide 4 Copyright © 2003 Pearson Education, Inc. Agricultural Stagnation and Growth Since 1950 n Although agriculture employs the majority of the LDC labor force, it accounts for a much lower share of total output

5. Chapter 10 Slide 5 Copyright © 2003 Pearson Education, Inc.

6. Chapter 10 Slide 6 Copyright © 2003 Pearson Education, Inc. Agricultural Stagnation and Growth Since 1950 n Although agriculture employs the majority of the LDC labor force, it accounts for a much lower share of total output n Trends in per capita food and agricultural production, 1950 -1994

7. Chapter 10 Slide 7 Copyright © 2003 Pearson Education, Inc.

8. Chapter 10 Slide 8 Copyright © 2003 Pearson Education, Inc. Figure 10.1 Index of Per Capita Food Production in Developing Regions, 1970-1994

9. Chapter 10 Slide 9 Copyright © 2003 Pearson Education, Inc. The Structure of Third World Agrarian Systems n Two kinds of world agriculture

10. Chapter 10 Slide 10 Copyright © 2003 Pearson Education, Inc.

11. Chapter 10 Slide 11 Copyright © 2003 Pearson Education, Inc. The Structure of Third World Agrarian Systems n Two kinds of world agriculture n Peasant agriculture in Latin America, Asia, and Africa –Latin America and Asia: similarities and differences –The Latifundio-Minifundio pattern

12. Chapter 10 Slide 12 Copyright © 2003 Pearson Education, Inc.

13. Chapter 10 Slide 13 Copyright © 2003 Pearson Education, Inc. Figure 10.2 Lorenz Curves of Agricultural Land Distribution by Operational Holdings

14. Chapter 10 Slide 14 Copyright © 2003 Pearson Education, Inc. The Structure of Third World Agrarian Systems n Two kinds of world agriculture n Peasant agriculture in Latin America, Asia, and Africa –Latin America and Asia: similarities and differences –The Latifundio-Minifundio pattern –Fragmentation and subdivision of peasant land in Asia –Africa: extensive cultivation patterns

15. Chapter 10 Slide 15 Copyright © 2003 Pearson Education, Inc. The Important Role of Women n Women provide 60% to 80% of agricultural labor in Africa and Asia, and 40% in Latin America n Women work longer hours than men n Government assistance programs tend to reach men, not women

16. Chapter 10 Slide 16 Copyright © 2003 Pearson Education, Inc. The Economics of Agricultural Development: Transition From Peasant to Commercial Farming n Subsistence farming: risk aversion, uncertainty, and survival

17. Chapter 10 Slide 17 Copyright © 2003 Pearson Education, Inc. Figure 10.3 Small-Farmer Attitudes towards Risk: Why It Is Sometimes Rational to Resist Innovation and Change

18. Chapter 10 Slide 18 Copyright © 2003 Pearson Education, Inc. Figure 10.4 Crop Yield Probability Densities of Two Different Farming Techniques

19. Chapter 10 Slide 19 Copyright © 2003 Pearson Education, Inc. Figure 10.5 Incentives under Sharecropping

20. Chapter 10 Slide 20 Copyright © 2003 Pearson Education, Inc. The Economics of Agricultural Development: Transition From Peasant to Commercial Farming n Subsistence farming: risk aversion, uncertainty, and survival n The transition to mixed and diversified farming n From divergence to specialization: modern commercial farming

21. Chapter 10 Slide 21 Copyright © 2003 Pearson Education, Inc. Toward a Strategy of Agricultural and Rural Development n Improving small-scale agriculture n Conditions for rural development

22. Chapter 10 Slide 22 Copyright © 2003 Pearson Education, Inc. Concepts for Review n Agrarian systems n Cash crops n Diversified farming n Family farm n Green revolution n Integrated rural development n Interlocking factor markets n Landlord n Land reform n Latifundio n Medium-sized farms n Minifundio n Mixed farming

23. Chapter 10 Slide 23 Copyright © 2003 Pearson Education, Inc. Concepts for Review, cont’d n Moneylender n Patrón n Per capita agricultural production n Per capita food production n Price bands n Productivity gap n Scale-neutral n Sharecropper n Shifting cultivation n Specialized farming n Staple foods n Subsistence farming n Tenant farmer n Transactions costs