Agriculture's importance economic progress Essay

Agricultures importance sparing progress - Essay ExampleAgriculture which is preponderantly the base of systems of economy in most of the under developed countries is the primary occupation of rural people in those countries. It is primary because it supplies elementary necessities of human life, provides basic inputs for industries and, in addition to these, purveys goods for exports and otherwise purposes. . . . the rise in agricultural point of intersectionion . . . makes important contributions to general economical training and that, within considerable limits at least, it is whiz of the preconditions which must be established before a take off into self sustained economic growth becomes possible (Nicholls, 1970). Earlier development economists corresponding Arthur Lewis (1954), Hirschman (1958) and Fei and Ranis (1961) have identified and analyzed how agriculture contributes to the overall economic growth of a country (Higgins, 1982). They highlighted that the unlimited labor supply in the agricultural firmament of an underdeveloped country can be transformed to industrial sector and the ability of agriculture to transfer its abundant resources to other sectors actually lead the economic growth of any country. Contribution of agriculture in an economy is judged by the value of the total quantity of output in the Net National return (NNP). A ratio between the output of agricultural sector and the output of non-agricultural sector or the proportion of the former in the NNP furnishes reasonable evidence non only of the nature of economy but also its stage of development. Simon Kuz lollys (1961) observes that an increase in the net output of the agriculture is, in and of itself, sum of the increases in the net outputs of the several sectors (61). So long as the rate of growth of the non-agricultural sector is higher than that of the agricultural sector, the proportional contribution of agriculture in the total product will decline. His model for a ssessing the product contributions to the NNP quite explicit and it is delineated as follows dP=A.a+O.o Where, A= Product of Agriculture O = Product of all other sectors P= Total Proudct =(A+O) a=rate of growth of A o=Rate of Growth of O d= change. The increment in the total product is the aggregate of products of sectarian outputs as multiplied by their respective rates of growth. Role of Agriculture in Economic Development- Traditional approach The traditional and preliminary approaches proposed by development economists like Lewis, Fie and Ranis highlighted the important roles of agriculture sector in the economic development of any country (Vogel, 1994). A fast track development of this sector is crucial for other sectors as well. Only a strong and efficient agricultural sector can feed the growing population of a country, provide employment, play vital role in the foreign trade and earning of foreign exchange and give a strong base to the industries. Because of these multifac eted functions of agriculture, it has got a multiplier effect on any countrys socio-economic and industrial scenario. Thus according to the traditional analysis the role of the agricultural sector is intent to the source of food, source of livelihood, role in foreign trade, capital/savings transfers and its role in industrial development (Stringer, 2001). Source of Lively hood around of the developing countries depend on agriculture and allied activities for their livelihood. Agriculture provides immense employment opportunities to the masses and this assumes much significance when the growing working force does not come out of the yoke. The figure may be varied from 10 percent to 60 percent in the contemporary scenario generally prevailing in the developing and underdeveloped countries across the globe (Stringer, 2001). Importance in the context of food security The character and content of a countrys economic structure alongside the potential for its further growth and developme nt are largely dependent not only upon the quantity but also upon the typecast of its output generated and distributed in the economy (FAO, 2001). For example, an