Potential Contribution of Agriculture to Economic Growth in Less-developed Countries

Abstract

Substantial betterment of conditions in the less- developed countries is dependent upon both private and public action to achieve rapid increases in output. Improved tech nology is the key to higher output, but successful adoption requires additional capital and the learning of new technical and management skills. Agriculture can become a leader in economic growth by providing labor-intensive employment for rapid increases in food production. Larger food supplies also will lessen the inflationary pressures resulting from the con struction phase of a development program. With the help of technical advisers, combinations of improved technology can be adopted that will greatly increase production per acre with a small investment of capital in relation to the resulting output. The combinations usually include chemical fertilizer, improved seed, pesticides, and better soil and water management. Help also will be needed in obtaining the necessary production sup plies, in arranging credit at reasonable rates, in developing storage and marketing facilities, and perhaps even in providing for changes in the tenure system. All of these aids may need to be combined into one program in order to shift rapidly from a primitive agriculture to the beginnings of modern farming.