“One view, is that the agricultural sector
is simply a reservoir of unemployed or underemployed labor, with low incomes and
living standards, from which people must eventually be moved by economic growth
in the non-agricultural economy. The alternative view is that the agricultural
sector itself must generate the growth that will eventually release labor and other
resources. This paper will consider both of these viewpoints, along with various shadings in between. It will also address a series of “big picture” questions involving
agriculture’s role in development. Is agricultural growth necessary for economic
growth and poverty reduction? Will investments in the agricultural sector have high social returns? If so, what kinds of investments are likely to have the highest payoffs? Are there important tradeoffs within the agricultural sector between growth and poverty reduction? This paper does not claim to be comprehensive; the literature on agricultural development is vast (and of varied quality), and on some points there is little professional consensus. Nevertheless, the paper will offer a survey of relevant literature, including both theory and empirical studies. It will also touch briefly on the policy literature, which has focused on a somewhat different set of issues than the academic literature.”
