Focusing on agricultural development the chapter argues that the role of the communications system in the development process is through its impact on the adoption and use of inputs and through its augmentation of human labor. Attention is directed to the specific case of a group of agricultural households in Nepal and the direct and indirect effects of communications upon farmer productivity are examined. The data used in this case study were collected in 2 districts (Bara and Rautahat) of Nepal from October 1977 through May 1978. The districts are 2 of 75 administrative districts in Nepal and are located in the Nepal Terai. The sample is a stratified random sample of 683 households in 6 of 109 panchayats of Bara and 6 of 132 panchayats of Rautahat. All of the household heads in the sample are male. The higher incidence of extension contact in Bara most likely reflects the earlier introduction there of the Training and Visit System which stresses message saturation and the communication of appropriate recommendations via specifically trained single-purpose extension agents and carefully selected contact farmers. The structure of the extension service in Nepal is hierarchical. It was found that schooling and extension contact enhanced the relative technical efficiency of farmers in the production of late paddy and wheat. These 2 influences appeared to be substitute sources of technical information. Educational enhancement did not enhance the impact of extension exposure as might be predicted a priori. In the analysis of adoptive behavior it was found that a farmer is more likely to use chemical fertilizers on a crop the higher the farmers educational attainment. This effect of schooling was indirect with schooling affecting the farmers numeracy and numeracy affecting the likelihood of adoption. Holding constant the other determinants of adoption a farmer was more likely to grow wheat or use chemical fertilizers the greater the proportion of other farmers who do so in this farmers immediate area (his panchayat). This finding supports the diffusion of contagion model of innovation adoption.

The chapters of this volume devoted to communication economics and development progress through theory methodology international dimensions and applications to development. There is a direct carryover from these topics to the program of research outlined at the end of this chapter. The first 5 chapters deal with theoretical issues and their conceptualization as the basis for deriving a better understanding of the role of communication in economic development. The major issues for concern are the economic variables that are endogenous to communication planning in view of rapid advances in communication. The traditional assumptions of economic theory are challenged because of the need for a new model of optimal resource allocation that will account for the informational and institutional characteristics of a given economic problem. 2 questions arise: is information a marketable commodity subject to the forces of demand and supply; and what are the micro-foundations of information behavior. In this contex there are several areas that require exploration: international trade; technology; national and international markets; distribution effects; diffusion effects; and measurement. In general participants of the 1980 workshop felt that free flow of information between countries is a myth because of the nonexistence of free markets in trade. Transnational corporations exercise a considerable degree of monopoly over information. The role of information in the North-South dialogue was discussed at length with reference to market intelligence and the changing international economic order. Social efficiency was considered similar to Paretian efficiency with distributional justice. Discussion pro and con prevailed regarding the establishment of international networks through computer conferencing. In the discussion on telecommunications and development that emerged at the workshop it became evident that the technology gap between advanced and developing countries is not a good proxy for the output gap. The technology gap exists because of barriers to communication between countries or because the transfer of technology has been inappropriate. The workshop attempted to frame a taxonomic agenda for pursuing the relationship between communication and development. The following taxonomy was urged: communication supports market exchange; information helps to coordinate national economic development and it supports resource mobilization; and communication changes the perception and attitude of society to development.