Matakuliah
Tahun
: <<EKONOMI PEMBANGUNAN>>
: <<2009>>
Agricultural Transformation and Rural Development
Pertemuan 6
It is in the agricultural sector that the bottle for long–
term economic development will be won or lost
(Gunnar Myrdal, Nobel Laureate in Economics)
The main burden of development and employment
creation will have to be borne by the part of the
economy in which agriculture is the predominant
activity, that is, the rural sector
(Francis Blanchard, Director General, ILO)
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Material Outline
• Transition from peasant subsistence to specialized
commercial farming
• Issues on environment and development
• Urban development and the environment
• Policy options in developing and developed
countries
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Transition from peasant subsistence to
specialized Commercial Farming
• Subsistence farming: risk aversion, uncertainty,
and survival
• Sharecropping and interlocking factor markets
• The transition to mixed and diversified farming
• From divergence to specialization : modern
commercial farming
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Toward a strategy of agricultural and rural
development: some main requirements
• Sources of small – scale Agricultural Progress
- Technological change and innovation
- Appropriate government economic policies
- Supportive social institutions
• Conditions for general rural advancement :
- Modernizing farm structures to meet rising food demands
- Creating an effective supporting system
- Changing the rural environment to improve levels of living.
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Improving Small – scale Agriculture
• Technology and innovation
• Institutional and pricing policies : providing the
necessary economic incentives
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Conditions for rural development
• Land reform
• Supportive policies
• Integrated Development Objectives
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Environment and Development: The basic
issues
1) The concept of sustainable development, and
linkage between the environment
2) Population, resources, and the environment
3) Poverty and the Environment
4) Economic growth versus the environment
5) Rural development and the environment
6) Urban development and the environment
7) The global environment
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Urban Development and the Environment
• The ecology of urban slums
• Industrialization and urban air population
• Problems of congestion and the availability of
clean water and sanitation
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Policy Options in Developing and Developed
Countries
• What less developed countries can do
1) Proper resources pricing
2) Community involvement
3) Clearer property rights and resource ownership
4) Programs to improve the economic alternatives
of the poor
5) Raising the economic status of woman
6) Industrial emission abatement policies
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Policy options in developing and developed
countries
• How developed countries can help LDCs
1) Trade policies/trade liberalization
2) Debt relief
3) Financial and technological assistance
(development assistance)
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Policy options in developing and developed
countries
• What developed countries can do for the global
environment:
1) Emission controls (reduce harmful emissions)
2) Research and development (develop clean
technologies for themselves and for LDCs
3) Import restrictions ( alter their own
environmentally harmful patterns of demand)
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