Agriculture's Role in Africa's Productivity
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Questions and Answers

What is one way that farmers in India improve their agricultural techniques?

  • By following international standards
  • Using traditional practices only
  • Through government mandates
  • By learning from field agents (correct)

    • 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.

    <p>small farmers</p> Signup and view all the answers

    Match the following organizations with their primary focus:

    <p>World Bank = Rural development and credit access IFAD = Improving food production for the poor UN = Multilateral agricultural assistance Field agents = Knowledge dissemination among farmers</p> Signup and view all the answers

    Which of the following activities is NOT mentioned as part of the World Bank’s projects in Mexico?

    <p>Taxation reforms</p> Signup and view all the answers

    The World Bank emphasizes that its financial contributions can be effective without appropriate national policies.

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

    What assumption does the Lewis model begin with regarding the economy?

    <p>A dual economy with a modern sector and a subsistence sector</p> Signup and view all the answers

    The marginal product of labor in the subsistence sector can be negative.

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

    What amount did IFAD disperse from 1978 to 2014?

    <p>$15 billion</p> Signup and view all the answers

    Who was awarded the Nobel Prize for Economics in 1979 for contributions to development economics?

    <p>Arthur Lewis</p> Signup and view all the answers

    Agriculture is subject to diminishing returns due to the fixity of the supply of __________.

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

    Match the following concepts with their descriptions:

    <p>Marginal Product = Additional output produced from one more unit of labor Subsistence Wage = Minimum wage required for survival Diminishing Returns = Decreased output per additional unit of input Dual Economy = Economic structure with both modern and traditional sectors</p> Signup and view all the answers

    What is one of the reasons that has held back industrial development in several developing countries?

    <p>Stagnant rural sector</p> Signup and view all the answers

    Labour is typically in short supply in low-income countries.

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

    What wage differential is often necessary for the industrial sector to secure an adequate supply of labour?

    <p>A wage differential to offset higher living costs and other factors.</p> Signup and view all the answers

    The transfer of resources from agriculture to industry may occur in the form of _______ or _______.

    <p>capital; labour</p> Signup and view all the answers

    Match the country with its historical method of extracting agricultural surplus:

    <p>Japan = Land tax during the Meiji Restoration Soviet Russia = Expropriation of land United States = Voluntary taxation China = Collectivization of farms</p> Signup and view all the answers

    Which economic model suggests that rural–urban migration is influenced by wage differentials?

    <p>Rural-urban migration model</p> Signup and view all the answers

    Industrial wages are generally lower than agricultural wages in low-income countries.

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

    What significant tax did Japan rely on for government revenue between 1880 and 1900?

    <p>Land tax</p> Signup and view all the answers

    What was a major issue faced by farmers in rural Africa in the 1980s and 1990s?

    <p>Access to credit</p> Signup and view all the answers

    Subsidies are considered a financial burden that benefits all farmers equally.

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

    What program has led to renewed commitment to agriculture in Africa?

    <p>Comprehensive Africa Agricultural Development Programme</p> Signup and view all the answers

    The World Bank is focused on boosting agricultural __________ and agricultural-related investment.

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

    Which of the following is an alternative to subsidies mentioned in the content?

    <p>Training for input dealers</p> Signup and view all the answers

    Smart subsidies should be unlimited in time to ensure lasting benefits for farmers.

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

    Match the following terms with their definitions:

    <p>Market failures = Challenges in accessing necessary resources for farmers Subsidies = Financial support to assist farmers Equity = Fairness in resource distribution Comprehensive Africa Agricultural Development Programme = A program aimed at improving agriculture in Africa</p> Signup and view all the answers

    Name one public good that needs investment to support African agriculture.

    <p>Rural roads</p> Signup and view all the answers

    What is the relationship between the price of agricultural goods and industrial goods?

    <p>Higher agricultural prices boost demand for industrial goods</p> Signup and view all the answers

    A higher price of investment goods positively correlates with agricultural growth rate.

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

    What is required to maintain equilibrium between agriculture and industry?

    <p>Terms of trade</p> Signup and view all the answers

    The agricultural growth rate is a function of investment relative to output and the productivity of __________.

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

    Match the following concepts with their descriptions:

    <p>Agricultural growth rate = Function of investment and productivity Industrial terms of trade = Price of industrial goods relative to food Equilibrium = Balance of supply and demand in sectors Investment ratio = Proportion of output invested back into production</p> Signup and view all the answers

    Which of the following factors negatively affects the growth of agriculture?

    <p>Higher costs of investment goods</p> Signup and view all the answers

    Industry can invest if the terms of trade fall below a certain minimum level.

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

    What influences the growth rate of the industrial sector?

    <p>Investment ratio and productivity of investment</p> Signup and view all the answers

    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.

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