Agriculture in Economic Development Strategies: The Philippines

Abstract

This paper discusses the general character of post-war Philippine economic develop ment and the elements and implications of an agricultureand employment-led de velopment strategy (AEDS) that is deemed superior to addressing the twin problems of abject poverty and high unemployment and underemployment in the Philippines. AEDS, proposed as an alternative development strategy, calls for the elimination of the biases of public policy against agriculture, thereby giving agriculture a central place in the development process. The key is to enhance rural income growth and industrialization through the employment and income multiplier effects of productivity increases in agriculture. While agricultural growth is not the ultimate objective of development policy, it is a critical step which must not be missed, for the mechanism of agricultural growth and the sequence of employment and income multiplier effects it sets in motion throughout the economy represent the key to a rapid, broad-based, and self-sustaining economic development.