Agricultural Transformation and Rural Development
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Questions and Answers

What is the primary goal of Rural Development?

  • To increase farm production only
  • To improve the quality of life and economic well-being of people living in rural areas (correct)
  • To provide sufficient low-priced food to the expanding industrial economy
  • To promote commercial farming practices

    • What is the main idea behind Integrated Rural Development?

  • To promote subsistence farming practices
  • To focus on agriculture as the leading sector
  • To provide massive government subsidies to commercial farmers
  • To adopt a comprehensive approach to rural development (correct)

    • What is a characteristic of commercial farming?

  • Diversified production for both personal consumption and sale
  • Small family farms with little government support
  • Very large landholdings with massive government subsidies (correct)
  • Low-productivity, subsistence-level farming

    • What is the primary focus of subsistence farming?

    <p>To meet personal consumption needs</p> Signup and view all the answers

    What is the typical outcome of agricultural transformation?

    <p>Farms shift towards more specialized production for the market</p> Signup and view all the answers

    What is the role of agriculture in traditional rural development strategies?

    <p>A passive and supportive role to the expanding industrial economy</p> Signup and view all the answers

    What is a characteristic of developing countries?

    <p>Agrarian economy</p> Signup and view all the answers

    What is a main cause of low productivity in developing countries?

    <p>Low education standards</p> Signup and view all the answers

    What is the dependency ratio in a country?

    <p>Percentage of those who are non-productive</p> Signup and view all the answers

    What type of unemployment refers to those who have given up searching for a job?

    <p>Hard core unemployment</p> Signup and view all the answers

    What is a problem associated with developing countries' economies?

    <p>Dependence on agricultural commodities</p> Signup and view all the answers

    What type of employment refers to those who work part-time informally?

    <p>Underemployment</p> Signup and view all the answers

    What is the primary purpose of development planning?

    <p>To coordinate economic decision making and influence economic variables</p> Signup and view all the answers

    What is a characteristic of Less Developed Countries (LDCs)?

    <p>Low level of savings and income</p> Signup and view all the answers

    What is the rationale for planning in mixed developing economies?

    <p>To address market failure</p> Signup and view all the answers

    What is the difference between a comprehensive plan and a partial plan?

    <p>A comprehensive plan covers all major aspects of the national economy</p> Signup and view all the answers

    What is the planning process in development planning?

    <p>Government chooses social objectives, then sets targets</p> Signup and view all the answers

    What is the system that combines elements of both a Market Economy and a Command Economy?

    <p>Mixed economy</p> Signup and view all the answers

    Study Notes

    Agricultural Transformation

    • Refers to the process by which individual farms shift from highly diversified, subsistence-oriented production towards more specialized production oriented towards the market or other systems of exchange.
    • Leads to a shift from subsistence farming to commercial farming.

    Rural Development

    • Refers to the process of improving the quality of life and economic well-being of people living in isolated and heavily populated areas.
    • Aims to improve the overall quality of life in rural areas.

    Stages of Agricultural Development

    • Subsistence: low-productivity, subsistence-level peasant farm conducted mainly for personal consumption.
    • Diversified or mixed family agriculture: where a small part of the produce is grown for consumption while the significant part is for sale to the commercial sector.
    • Specialized: exclusively engaged in high-productivity specialized agriculture geared to the commercial market.
    • Commercial farming: characterized by very large landholdings, massive government subsidies, and high productivity.

    Developing Countries

    • Agrarian (or at least not industrialized) with lower standards of living and a weak economy with slow or nonexistent growth.
    • Characterized by low levels of living, low productivity, high population growth, and dependency burden.
    • High and rising levels of unemployment and underemployment.

    Unemployment and Underemployment

    • Hard Core: those who have been unemployed for so long that they have given up searching for a job and no longer appear as unemployed.
    • Hidden Unemployed: those who work for a few hours a day on the family farm or in a family business or trade.
    • Underemployed: those who would like full-time work but are only able to get part-time employment, often on an informal basis.

    Dependence on Agriculture and Export of Primary Products

    • The problem of over-dependence on agricultural commodities was examined in the context of the Terms of Trade.
    • Developing countries tend to rely heavily on agricultural commodities for export.
    • The Planning Mystique: the almost universal acceptance of development planning as the surest and most direct route to economic progress in the initial decades after World War II and decolonization.
    • The Nature of Development Planning: a deliberate governmental attempt to coordinate economic decision making over the long run and to influence, direct, and in some cases even control the level and growth of a nation’s principal economic variables.
    • Comprehensive plan: sets targets to cover all major aspects of the national economy.
    • Partial plan: covers only a part of the national economy, such as industry, agriculture, the public sector, the foreign sector, and so forth.
    • The Need for Planning: planning process itself can be described as an exercise in which government first chooses social objectives, then sets various targets.
    • Planning in Mixed Developing Economies: combines elements of both a Market Economy and a Command Economy.
    • Market failure: a situation defined by an inefficient distribution of goods and services in the free market.

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    Description

    Test your knowledge of agricultural transformation, rural development, and the concept of integrated rural development. Learn about the process of shifting from subsistence-oriented production to market-oriented production and improving the quality of life in rural areas.

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