Agriculture and economic development
Figueroa Martinez, E.
Revista de Economia Politica 63: 7-24
1973
Document Number: 415752
The problem of agriculture within the long-term development process is analyzed, particularly in terms of productivity, level of employment and finance. Particular reference is made to the Spanish case. Four main points are made in conclusion: (1) the problem of labour underemployment in the agricultural sector is unavoidable since the required rate of growth for the whole economy and the required rate of growth of demand for labour in the agricultural sector which would produce factor equilibrium is too high to be reached. (2) There are possibilities of obtaining and maintaining equilibrium of output and of labour in disguised unemployment simultaneously, through the development process in an open economy. (3) To fully satisfy the necessary condition for this objective, the growth rate of productivity in the two sectors would need to be kept uniform, under the supposition that the relative share of labour in the non-agricultural sector would remain permanently unchanged. (4) To maintain a uniform productivity growth rate, under the pressure of increased labour, three principles have to be adopted: (a) acceleration of growth in the non-agricultural sector; (b) introduction of new techniques in agriculture; (c) stimulation of higher investment in agriculture.