Developing agriculture: pitfall to avoid and pathway to success

Abstract

That industrialization process is taking place at quite rapid rate in Asian countries and that the share of agriculture in GDP is gradually dwindled are well known: still, the importance of agriculture cannot be underestimated as the majority of Asian peoples earn incomes from agricultural activities, not to mention those who earn livings from various activities interrelated with agriculture. Hence the government policy on agriculture remains to be important. Moreover, rapid changes in world agriculture together with the increasing concern about the cost of protectionism make it necessary to consider government policy from new perspectives. To mention only few important recent structural changes in world agriculture; a) Technological advancement greatly increases the supply of commodities and have led to the food over-production situation -- contrary to the fear for 'food shortage' in 1970s -- in many developing countries: this is inconsistent with the strong protectionism in advanced countries,which is not yet reduced: b) as the resource endowments for most LDCs have been depleting at rather rapid rate and the cultivate land becomes a constraint, thereby put pressure for farmers, and government likewise, to adjust -- needless to mention that the 'flexibility', i.e., the ability to adjust to new environment, varies among the group / regions; and c) despite the fact the share of non-agricultural sector increases significantly, labor absorption in non-agriculture does not generally rise by the same rate, if this trend continues it may lead to the more unequal income distribution.