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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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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