Development Economics SOCSC13

Agricultural production evolves in three stages: traditional (subsistence), diversified (mixed), and modern (specialized).

A type of farming focused on producing enough food for immediate consumption, with little surplus for sale.

Farming that combines growing crops for use and sale.

Farming that uses advanced technologies and specialized techniques to maximize commercial production.

The transition from subsistence to diversified to specialized agricultural production in developing economies.

Subsistence farmers face high risk due to uncertainty and a focus on survival, leading to limited development.

Transforming traditional agriculture requires adapting farm structures, impacting social, political, and institutional structures in rural areas.

Failure to address social and structural issues can lead to widening disparities between rich and poor in agricultural societies.

An agricultural system where most of the output is for the family's consumption.

The main foods that provide the primary nutrition on a subsistence farm.

Subsistence farms produce a small amount of food.

The main resources used in subsistence farming, rather than capital investment.

Adding more labor to the same land produces less additional output.

Subsistence farmers face risks of bad weather, land loss, and debt collectors.

These methods are often simple tools and techniques, traditionally passed down through generations.

This farming method is still commonly used in parts of Sub-Saharan Africa, and certain parts of other continents.

The idea that as you add more of one input (like labor) to a fixed input (like land), the increase in output will eventually get smaller and smaller.

Farmers in subsistence agriculture, even with limited resources, make decisions based on maximizing their potential income or output, given the constraints they face.

Even though innovation can improve output, farmers may resist adopting new technologies or crops due to factors like lack of information, trust in traditional methods, or fear of unknown risks.

The unrealistic idea that farmers have complete information about all available technologies, input costs, and how to use them effectively.

Traditional social institutions, especially those affecting women, can limit farmers' choices and ability to adopt new ideas, hindering economic progress.

It's not just about farming! It involves improving rural incomes through job creation, education, healthcare, housing, and other social services.

It aims to reduce income gaps between rural and urban areas, creating more equal opportunities for all.

It's about protecting the environment while improving rural economies, like limiting farmland expansion and using resources wisely.

The rural sector must consistently improve and accelerate progress over time to achieve long-term success.

More than half the developing world lives in rural areas. Rural development empowers people and creates a balanced, equitable society.

Farmers in subsistence agriculture face a wide range of possible prices for their crops, making it difficult to predict income and plan for the future.

Subsistence farmers tend to be cautious and avoid taking risks due to the high stakes involved in their livelihood. They prioritize survival over maximizing income.

Farmers often stick to familiar, proven techniques even if they offer lower yields, to minimize the risk of crop failure and ensure survival.

In subsistence agriculture, the main goal is often not maximizing profit but ensuring enough food for the family to survive.

Subsistence farmers may prefer farming methods that produce consistent, even if low, yields over those with higher average yields but higher risk of failure.

Providing insurance mechanisms, both financial and physical, is crucial for enabling farmers to adopt new technologies and improve productivity.

A lack of understanding about the risks and uncertainties faced by subsistence farmers has often led to mischaracterizing them as backward or lazy.

The cautious behavior of subsistence farmers, driven by risk aversion, can hinder the adoption of new, potentially more productive, technologies.

To support the development of agriculture in developing countries, it’s crucial to understand the role of risk and uncertainty in subsistence farming.

When traditional farmers seem unresponsive to apparent economic opportunities, a closer look often reveals underlying factors like risk aversion and resource constraints.

The landlord captures a majority or all of the profits from land cultivation, while the tenant gets minimal benefits.

A farming arrangement where a tenant cultivates the landlord's land in exchange for a share of the crop, often half.

When tenants face the risk of eviction or expropriation, their motivation to invest in improvements is significantly reduced.

Tenant farmers consider the potential for losing their land when calculating the benefit gained from using inputs like fertilizer.

Landlords can ensure tenant effort by monitoring their work and replacing those who don't work hard enough.

Landlords offer tenants a choice between sharecropping or renting to attract different types of farmers based on their abilities.

Despite the monitoring approach, studies show that sharecropping can be less efficient than owning the land.

Landlords often act as employers, creditors, and buyers, creating a system where tenants are dependent on them for various needs.

Using machinery to replace human labor in farming, which can increase output per worker but require large capital investment.

Agricultural innovations that can be applied equally well on both large and small farms, without requiring a lot of capital.

The introduction of high-yielding crop varieties and improved agricultural practices to increase food production.

Government policies and institutions often favor large landowners, hindering the benefits of the green revolution for small farmers.

Government policies that set low prices for agricultural products to keep food cheap for urban areas can harm farmers and hinder agricultural development.

Small farmers often work together in groups to improve their bargaining power and get better prices for their products.

Foreign investment in farmland in developing countries, potentially leading to job creation but also risks of land loss and environmental degradation.