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What is one way that farmers in India improve their agricultural techniques?
The World Bank's credit programs primarily support large farmers in India.
False
How many low-income families in Mexico benefited from the World Bank's multipurpose projects?
75,000
The International Fund for Agricultural Development (IFAD) focuses on integrating ______ and landless people into the development process.
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Match the following organizations with their primary focus:
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Which of the following activities is NOT mentioned as part of the World Bank’s projects in Mexico?
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The World Bank emphasizes that its financial contributions can be effective without appropriate national policies.
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What assumption does the Lewis model begin with regarding the economy?
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The marginal product of labor in the subsistence sector can be negative.
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What amount did IFAD disperse from 1978 to 2014?
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Who was awarded the Nobel Prize for Economics in 1979 for contributions to development economics?
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Agriculture is subject to diminishing returns due to the fixity of the supply of __________.
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Match the following concepts with their descriptions:
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What is one of the reasons that has held back industrial development in several developing countries?
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Labour is typically in short supply in low-income countries.
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What wage differential is often necessary for the industrial sector to secure an adequate supply of labour?
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The transfer of resources from agriculture to industry may occur in the form of _______ or _______.
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Match the country with its historical method of extracting agricultural surplus:
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Which economic model suggests that rural–urban migration is influenced by wage differentials?
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Industrial wages are generally lower than agricultural wages in low-income countries.
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What significant tax did Japan rely on for government revenue between 1880 and 1900?
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What was a major issue faced by farmers in rural Africa in the 1980s and 1990s?
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Subsidies are considered a financial burden that benefits all farmers equally.
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What program has led to renewed commitment to agriculture in Africa?
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The World Bank is focused on boosting agricultural __________ and agricultural-related investment.
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Which of the following is an alternative to subsidies mentioned in the content?
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Smart subsidies should be unlimited in time to ensure lasting benefits for farmers.
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Match the following terms with their definitions:
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Name one public good that needs investment to support African agriculture.
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What is the relationship between the price of agricultural goods and industrial goods?
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A higher price of investment goods positively correlates with agricultural growth rate.
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What is required to maintain equilibrium between agriculture and industry?
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The agricultural growth rate is a function of investment relative to output and the productivity of __________.
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Match the following concepts with their descriptions:
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Which of the following factors negatively affects the growth of agriculture?
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Industry can invest if the terms of trade fall below a certain minimum level.
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What influences the growth rate of the industrial sector?
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Study Notes
Agricultural Productivity in Africa
- African agriculture was largely ignored by governments and donors during the 1980s and 1990s.
- The Comprehensive Africa Agricultural Development Programme aims to refocus investment on agriculture, emphasizing rural infrastructure like roads and healthcare.
- Market failures often prevent farmers from accessing credit, insurance, and essential inputs, trapping them in poverty despite available technology.
- Smart subsidies can alleviate the inability of poor farmers to secure credit or accept risks, while promoting better agricultural practices.
- Targeted subsidies should be temporary and promote commercial distribution to avoid long-term dependency.
- Kenya’s liberalized fertilizer distribution is mentioned as a possible alternative to subsidies.
The World Bank's Role in Agriculture
- The World Bank prioritizes enhancing agricultural productivity and related investments.
- Initiatives in India involve 'contact' farmers sharing knowledge, aiding over 10 million families, especially in supplementing irrigation access.
- Rural projects in Mexico have benefitted around 75,000 families through investments in various sectors, including irrigation and healthcare.
- The World Bank's effectiveness is linked to the commitment of national policies regarding pricing and land reform, needing local investment to complement funds.
- Institutional reforms are crucial for developing the rural sector and enhancing agricultural productivity.
Importance of Institutional Investment
- External institutional investment is vital in early development stages for agricultural and industrial growth.
- The stagnation of the rural sector can hinder industrial development in low-income countries.
- Resource transfer from agriculture to industry can occur through capital or labor, with labor migration typically towards industrial opportunities due to better wages.
Labor Dynamics in Rural and Urban Sectors
- Urban industrial wages are often double agricultural wages, creating a wage differential that drives labor migration.
- Labor transitions are facilitated by the expectation of better living conditions and opportunities in urban settings.
- Government interventions, such as taxation, may sometimes be used to mobilize agricultural capital, as seen historically in Japan and Soviet Russia.
Application of the Lewis Model
- The Lewis model describes a dual economy with a capitalist sector alongside a subsistence agricultural sector, presuming an abundance of labor in agriculture.
- In an underdeveloped economy, labor productivity in agriculture may be negligible, contributing to a slow transition to industrialization.
- Agricultural productivity is subject to diminishing returns due to land limitations, often resulting in surplus labor unable to find adequate employment.
Interdependence between Agriculture and Industry
- Surplus food production enables industry to lower costs and accumulate capital, suggesting a symbiotic relationship between agriculture and industrial growth.
- Industrial growth depends on terms of trade, affecting agricultural investment based on the price of industrial goods relative to food prices.
- The interaction between agricultural output and industrial demand necessitates a balanced economic framework where both sectors grow in tandem to maintain stability.
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Description
Explore the crucial role of agriculture in enhancing productivity in Africa. This quiz delves into the historical neglect of African agriculture and the revitalization efforts led by the Comprehensive Africa Agricultural Development Programme. Test your knowledge on the challenges and advancements in this field.
