Agriculture as an escape from the poverty trap

Development usually involves the transformation of an economy from one dominated by agriculture into one where other economic activities assume a greater role. Yet, whether agriculture plays a passive or an active role in the economy’s transformation from a low to a high living standard is less clear. Many development economists have paid relatively little attention to agriculture—with some notable exceptions—despite the fact that some economists have argued that there has not been any industrial revolution that was not preceded (by 50 to 60 years) by an agricultural revolution, in other words, by a substantial increase in agricultural productivity. In many development strategies, ranging from import-substituting industrialization to export-led growth, agriculture has played only a supportive role or no role at all. In particular, the interactions between agriculture and other sectors have often been ignored and frequently little emphasis has been put on enhancing technological progress, on investing in agriculture and on exploring the possibility that agriculture can trigger development elsewhere. Policies have frequently displayed, either explicitly or implicitly, an urban bias, reflected in heavy taxation of agriculture, price controls on food, a lack of rural infrastructure, too little agricultural research and neglect in the provision of social services in rural areas. On the other hand, agriculture has played a large role during the development process in a number of countries, for example, China and Japan.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Climate Action