Towards a strategy for rural development
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Towards a Strategy for Rural Development. Some Main Requirements. Principal Sources of Agricultural and Rural Progress. Technological Change and Innovation- no scope for improvement by moving into new land. Two major sources:

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Towards a Strategy for Rural Development

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Towards a strategy for rural development

Towards a Strategy for Rural Development

Some Main Requirements


Principal sources of agricultural and rural progress

Principal Sources of Agricultural and Rural Progress

  • Technological Change and Innovation- no scope for improvement by moving into new land. Two major sources:

  • 1. “Mechanized” agriculture to replace human labor but mechanized equipment may not be suited to land and it displaces workers creating unemployment

  • 2. Inputs for Green Revolution: hybrid seeds, water control (irrigation), chemicals (fertilizers, pesticides, insecticides)


Principal sources of agricultural and rural progress1

Principal Sources of Agricultural and Rural Progress

  • Appropriate Institutional and Government Economic Policies

  • Inputs are “scale neutral” useful at a variety of scales

  • But too often large landowners have better access to these inputs and low interest government loans while smallholders turn to moneylenders

  • Low prices for output provide no incentive for farmers to produce surplus

  • Must create incentives for small farmers—this often means less government intervention


Three conditions for rural development

Three Conditions for Rural Development

  • 1. Land reform- farm structures and land tenure patterns need to be adapted to : increasing food production and promoting benefits of agrarian progress

  • Highly unequal structure of land ownership probably single most important determinant in explaining inequitable distribution of income


Three conditions for rural development1

Three Conditions for Rural Development

  • 2. Supportive Policies- need government policies that provide incentives and opportunities and access to needed inputs

  • Must be corresponding changes in rural institutions that control production (banks, moneylenders)

  • Must be corresponding changes in supporting government services (credit, education, rural transport and feeder roads)


Three conditions for rural development2

Three Conditions for Rural Development

  • 3. Integrated Development Objectives

  • Simultaneous changes needed in income, employment, education, housing, health and nutrition

  • Lessening of rural-urban imbalances in income opportunities

  • Capacity of rural sector to sustain and accelerate these improvements over time


Land reform

Land Reform

  • What is land reform? Reorganization of landholding and tenure structures

  • Accomplished in two ways:

  • A. Expropriation-with or without compensation of privately owned estates to benefit small scale peasantry and landless

  • B. Consolidation of excessively small or fragmented holdings

  • Agrarian reform- is closely related involving redistribution of land but also provision of roads, rural electricity, rural credit, extension services


Experiments in land reform

Experiments in Land Reform

  • Zimbabwe- in 1980s state attempted to eliminate dualist structure where “white farmers” had major interests

  • Resettlement aimed to provide landless families displaced by war with land on former European farms

  • But by 1990s only 52 thousand families were moved; schemes fragmented

  • Mugabe government has expropriated European farms and the ‘backlash’ has been for these farmers to move to Zambia


Experiments in land reform1

Experiments in Land Reform

  • Indonesia- Transmigration Program

  • Dutch initiated in early 1900s where families were recruited in Java, Bali and Lombok and resettled to the Sumatra, Kalimantan and Sulawesi

  • Over 4 million people moved but results have been uneven: poor land, environmental damage, necessity to find off farm employment

  • Program was terminated in 2001


Experiments in land reform2

Experiments in Land Reform

  • Cuba- At end of Cuban Revolution in 1959 sugar companies controlled 20 percent of farmland

  • Staged expropriation of large farming units to state control

  • Enlargement of small scale private sector gave land ownership to all tenants, sharecroppers and squatters

  • Provided basis for socialist agricultural development and provision of health services and education

  • But has this system succeeded in bringing better livelihoods to Cuban families??


Vietnam economic reform or renovation doi moi

Vietnam -Economic Reform or Renovation:Doi Moi

  • Dismantling of economic communes or collectives

  • Reallocation of land use for family farms

  • Opening country to foreign direct investment- recognize value of market mechanism

  • Reform of banking sector

  • Establish real interest rates>>>Savings

  • Direct subsidies to State Owned Enterprises (SOEs) ended


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