Agriculture as a Source of National Economic Growth

This concept has been learned through the history of Western countries and Japan, where agricultural revolutions always preceded and supported the occurrence of industrial revolutions. More recently, the household responsibility system that marked the end of collectivization in China and the Green Revolution that multiplied yields of food grains by two or three in India allowed to accelerate agricultural growth, reduce poverty, and induce economic take-offs in other economic sectors, particularly industry in China and services in India.

This works as productivity growth in agriculture, frees labor for employment in industry and services, delivers cheap food for consumers, transfers savings and foreign exchange for investment in other sectors, and creates demand for the products of industry and services based on rising farmers' incomes.

As growth in other sectors accelerates, the share of agriculture in the economy and in total employment shrinks, a sign of success. In the poor countries of Sub-Saharan Africa, some 50 percent of the labor force. If agriculture fails to deliver more growth, little else can replace it.

Rice Cultivation in Cambodia

Reference

Byerlee, D., (2007), Agriculture for Development: the World Bank's 2008 World Development Report