Subject: Economic Development

Explain the contributions of agriculture in the economy.

Informations:

Agriculture has long been the way of life for the majority of people in underdeveloped countries. This way of life has been carried down from generation to generation, tying the families together in such a way that it may be passed down indefinitely. Modernization and industrialisation, on the other hand, put an end to this fantasy of living a simple and happy existence. Agriculture is mostly concentrated in rural regions. There's a lot to talk about when it comes to rural income sources. The finest basis for industrialisation is agriculture. The industrial sector requires a substantial amount of resources and product.

Agriculture's primary goal is to provide enough low-cost food and labor to the growing industrial sector. This is the most important sector in emerging countries' economic growth. Lewis' two-sector model "is an example of a theory of development that lays a significant focus on fast industrial growth, with a cheap food and surplus labor agriculture sector powering this industrial expansion." (Todaro et al., 2013)

"Nobel laureate Simon Kuznets proposed an early scheme, noting that agriculture made four "contributions to economic development": the product contribution of inputs for industry such as textiles and food processing, the foreign-exchange contribution of using agricultural export revenues to import capital equipment, the market contribution of rising rural incomes that create more demand for consumer goods, and the factor market contribution, divided between the labo and the factor market." (Todaro et al., 2013)

Agriculture has the capacity to keep up with population growth. It may possibly have debunked the Malthusian trap, which explains why population grows faster than food supply. Countries have put in place measures to address the issue of hunger. They even undertake environmental and natural resource protection projects. One example is the Green Revolution, which is the increase in food output connected with the scientific discovery of novel hybrid wheat, rice, and maize seed types that have resulted in high agricultural yields in many developing nations. (Todaro et al., 2013)

Agricultural system refers to the pattern of land allocation, ownership, and administration, as well as the agrarian economy's social and institutional framework. The three agricultural systems are as follows: (Todaro et al., 2013)

1. Agricultural is still a key source of economic development in agriculture-based nations, owing to the fact that agriculture accounts for such a substantial percentage of GDP. 2. The majority of the world's rural inhabitants reside in nations that are undergoing transformation, according to the research.

3. In urbanized nations, rural-urban migration has reached a stage where cities now house roughly half or more of the poor, and agriculture contributes even less to production growth.

The needs for agricultural and rural development are as follows:

1. enhancing small-scale farming 2. give the required incentives 3. agrarian reform 4. government initiatives that are beneficial