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(2) have viewed agriculture. as solely a supplier of. with. inputs, albeit necessary. ones, to industry-led. In. industry. can. addition,. structural transformation. Furthermore, as a result, many developing countries, with the. taken. important exceptions of countries in East Asia,. reducing. poverty. have pursued industrialization. growth.. Thus,. largely at the. expense of agriculture and, more seriously, to the detriment of growth and social equality. The thesis of agriculture tool for industrialization. as an ancillary. was the dominant. hold. income. of. countries. The. some. context.. important. dissenting. be noted below.. voices. as will. This paper will argue that. of people. the. It. development. view.. in which. Indeed,. industrialization. in. the. for this transformation transfer. stages. is the. of resources. industry.. However,. interpreted. as. agriculture.. early. of. one of the major mechanisms. a. from. intersectoral. agriculture. this. in agriculture. advocates. be. theory. or. of. salient. given. during. the. active. agriculture. past. The. East. economies. As noted. by Thorbecke. and Morrison,. "It. Asian. fact. have. in either. is even. quarters. is a testament. to these. Unfortunately,. only. during. 1960's and. the. have. the. increasing. agrarian. production. 2004, p. 8).. than from stagnant. (cited in Thorbecke Therefore,. or. & Wan,. the development. of. agriculture must be placed within a more holistic framework of economic growth. The establishment. of a more dynamic. form.. activists. of the. Green. of. these. pro-agriculture. in. tremendous. and. Asian. institutions,. The. recognized. experiences. of some. namely the newly industrialized. countries,. countries. in. In the. to support the argument that the development. will. of agriculture. failure. in a symbiotic. relationship. — 26 —. the. among the. and poverty. East Asia, provide ample empirical evidence. and. experience,. foundations for economic growth with equity. past. the. be. with. the. ascendance. theories in. the. resulted. productivity. latter. period,. revision. of. after the. international. a. East. financial have. agriculture. finally in growth. reduction. second compared. to. of. of. significant. others,. role. late. in any. Revolution,. In. the. theories. coinciding. increases. output.. reconsideration. sway. period,. rise. in which synergies. can lay the. held. In the former. relationship between industry and agriculture are created. decade. of. of the. positions.. falling output". of an. experience. is much easier to extract a net surplus from. last. more made. in favor. in some. successful. the. upper. arguments years. sector. academia.. periods. the. of time. robust. productivity is necessary in order for there to be a significant surplus to transfer to industry.. were. gained. seventy. the. respective. at no point. This. the. in. their. amount. practice.. of. or less prominence. agriculture. not. will. overview. There. more. for a sustained. paper. agriculture. and. However, of. "squeeze". leading to higher. of. gave. to agriculture.. of. to lift. in a historical an. policy.. theory. profile. in terms. this. provide. public. the. developing. only. of. theories. hand. On the contrary, a delicate balance. of investment. on. overall. of poverty.. literature. to. should. wholesale. impact. in. to. also in order. of agriculture. will. evolving. agriculture's role in economic transformation must go beyond this traditional reductionist. not. section. theory. day. but. out. first. the. of. present. middlea role. contribute. growth. has. play. elevation. in. equity.. reached. can. is imperative. millions. review. have. and the. with. industrialization. agriculture. economic. paradigm among most development economists for much of the 20th century notwithstanding. to growth. after. and countries. status,. agriculture. their. lead. even. transform. section, with its. East. Asia's. Latin economy.. success. America's The.
(3) M21. main and. focus will be an analysis strategy. shortly. before. of policy. and. after the. Underdevelopment in one sector will lead to underdevelopment in the other.. start of industrialization in each region. In East Asia, extensive rural reforms provided. Unfortunately,. the basis for industrialization.. playing down the role of agriculture. Policymakers at the state level in most. success. in leveraging. East Asia's. agricultural. to the benefit of industry. policies. is in stark contrast. practice. most. economic. emphasized. developing. industrialization. countries. with. the. exception. agricultural. extreme burdens on agriculture. The small farm sector and peasantry were particularly. urban. industrial. bias. The evidence is clear that agrarian reform and robust governmental policy in infrastructure, to ensure. credit and incentive programs. food productivity. growth. were. affected. by. the. economies. while. to Latin America's ineffective policy mix of and. Asian. and. of some. neglect. East. theory. extraction. and material resources industrialization. The. of. imposed. financial. in the drive for unfair distribution. essential in propelling industry forward in East Asia (see Thorbecke & Wan, 2004; or Kay,. of assets, mainly land, in the rural sector, led to distorted development in agriculture. 2002). The forward and backward. and eventually. linkages. between industry and agriculture in the region. economy.. produced a virtuous cycle of production, consumption and economic growth. Even more remarkably, the growth coincided with. that. equitable income distribution turn fueled more growth. America. superimposed. patterns that in Conversely, Latin. an industrialization. arrested growth in the entire. The. strategy. does not take. of development. into consideration. delicate balance of investment. the. needs of both. sectors will suffer from extreme economic swings and eventually finish in crisis. In this section, the contrasting Korea. with. some. cases of Brazil and. generalizations. to their. policy upon a backward agricultural sector that was dominated by large semi-feudal. respective regions during their initial period. landownership initially agriculture. with disastrous. skewed. distribution. of industrialization. will be used to gain insight. results.. An. into the consequences. of assets. in. development strategies.. of policy choices in. was replicated in the expanding. urban centers. manufacturing. The Role of Agriculture. Paltry growth in industrial could not absorb the large. in Theory. There is a long appreciation of agriculture's. population influx from the countryside creating mass un- and underemployment.. role in development beginning with Rosenstein-. Consequently,. Rodan (1943) and Rostow (1956) who spoke. agriculture rural. the. underdevelopment. led to food shortages,. and urban. joblessness. of. inflation,. and ultimately. of "Big Pushes" and "Take-offs" respectively. They both described modernization as a process. economic crisis. The third section of the paper focuses. where. on the mutual linkages relationship between. move towards a more modern industrialized. industry. particularly. and intersectoral agriculture and during. the. initial. stages of economic growth. Each sector is reliant on the other for sustained growth.. countries. traditional one.. would. agricultural. leave behind. societies in favor of a. In Rosenstein-Rodan's. this would. be achieved. (1943). view,. by concentrating. all resources in a one-time effort of massive investment. — 27 —. their. coordinated in industry..
(4) For Rostow. (1956), modernization. accomplished. through. a natural. would be progression. of stages as higher productivity would attract investment into industry and away from. developed. world.. This break. achieved by implementing a program of import substitution industrialization (ISI). ISI called for the production of industrial products. agriculture. Lewis' (1954) dual sector model of economic. previously imported world. ISI dominated. growth formally outlined agriculture's role in the economy. He predominantly emphasized. from 1950s through. the supply side characteristics of agriculture's role in development.' The gist of Lewis'. was to be. from the developed development thought to the. 1970s and was. pursued with vigor throughout world. The. main. the developing. theoretical. issue. model consisted in the shift of surplus labor. this period became the appropriate. in agriculture. of. to industry.. Industries. could. extracting. capitalize on the low wages and incomes received by labor in agriculture by offering. agriculture. slightly. economic. higher. wages. in industry.. High. productivity in industry combined with relatively low labor costs would result in. the. savings. method. surplus. for capital accumulation. in industry.. during. purposes. It is within this context theory. counter-industrial. saw the beginnings pro-agriculture. from that of a. movement.. in. Johnston and Mellor's (1961; see also Mellor, 1973) seminal article provided the first proofs. turn could be re-invested in industry and move the economy into a cycle of growth. on the demand linkages between agriculture and industry. In addition to the supply of. and expansion.. labor and food, according. rising profits.. These high profit margins. Hence, development. was just. to Johnston. an easy matter of the transfer of subsistence. Mellor, agriculture. wage labor from low productive agriculture. for industrial. output.. in agriculture. would lead to higher. to. high productive industry. In the 1950s, according. to Hirschman's. and. could also be a market Higher. productivity wages. and income in this sector which would then. (1958) unbalanced growth model, agriculture had little to offer in terms of forward and. generate demand for industrial products. Furthermore, any remaining income, i.e.. backward linkages and thus could not be relied upon as a leading sector in economic. savings,. growth. Therefore, the only impetus for sustained growth was the creation of a vibrant industrial. sector. and backward. that. had. strong. forward. linkages with the rest of the. in agriculture. after. consumption,. could be used for investment in industry. Adelman (1984) took their theories one step. further. and. argued. for. agriculture. demand led development (ADLI). ADLI, " according to which, because of production. economy. Hirschman's thought provided strong underpinnings for the debate already. and. underway. driven rather than export-driven and increased agricultural productivity would be. at the UN Economic Commission. of Latin America (ECLA). Raul. Prebisch. (1950),. an. acceleration. so. doing,. break. their. agricultural. ECL A's director, was. arguing. of industrialization.. developing traditional commodity. countries dependency trade. with. for In. development. the. strategy. linkages,. a. country's. should be agriculture. the initiator of industrialization" Effenberger, 2011, p. 7).. could on. consumption. (Dethier &. The earlier influential work of Johnston and Mellor planted the seeds for the green revolution that took hold in the 1970's. — 28 —.
(5) M21. and. early. 1980's albeit. within. a distorted. in some. developing. large landowners farm holders.. at the expense of the small Secondly, and related to the. economic. framework. countries.. During. this period, agriculture. latter, small farm holders were proven to be. took center. stage.. Macro economists. took. more efficient in terms of land productivity. as common. sense. that. food. any advantage given to large land owners was. a consistent. supply at a competitive price was paramount for the welfare of the poor. However, as a consequence. of anemic. inequality. growth. in the developing. the late 1970's, agriculture. and. rising. world during. lost its luster. as. a cost to the economy.. so. Third, on efficiency. grounds as explained by Kay, "under allocation of resources to agriculture not only held back growth, in agriculture. as additional. investment. would achieve a higher. rate. an area of research, despite some significant improvements in productivity. This was. of return than in industry, it also hampered industrialization as foreign exchange was. evidenced,. diverted towards importing food rather than. reduction. for. example,. in. of US foreign. the. drastic. aid to agriculture. to essential raw materials for industry". from $1.2 billion in 1986 to $240 million in 1997 (Mellor 1999, p. 11). In terms of equity, only large landowners were able to take advantage of the governmental. programs. put in place. to supply credit, irrigation infrastructure and new seed varieties that were the essence of the Revolution.. Small farms, in turn, saw prices. p. 110). This urban means. bias was accomplished. of government. through. (2009:. the terms. fiat. by. predominantly. of trade: 1) government. price controls underpriced output from agriculture and overpriced inputs from industry; 2) government manipulation of. for their output decrease and their input prices. macro. increase. Similarly, landless peasants suffered from either declining wages or joblessness as a. exchange rate and; 3) legislation of heavy taxation on agriculture. Large farm owners,. result of farm mechanization. however,. Despite Revolution. the and. (Rosett, 2000).. criticism. of the. the subsequent. decline. in. influence. of. theorists, outspoken. there still remained prominent voices in favor of the role of. agriculture. pro-agriculture. Green. in development.. development. They mainly. policy. designed. to overvalue. could escape these. by negotiating. with the. the. "price twists". state. low priced. foodstuffs destined for growing urban centers in exchange. for loopholes in land reform,. lower. low interest. taxes,. rate. loans, and. subsidized inputs (Kay, 2009). While Lipton and. others4 called for massive. reforms. in. took the form of critiques of urban bias in the strategy of development and a "told you. agriculture in the late 1970s and early 1980s, mainstream development studies entered a. so". period of reflection and some disappointment at the perceived "failure of development" . ISI. attitude. of the. regarding. the. Green Revolution.. partial. failure. Lipton's. (1977). opus is by far the most consequential.. He. argued that the economic prejudice against agriculture, particularly small farmers, had a. policies had resulted in inflation, economic stagnation and debt crisis. At the same time, the Green Revolution was not the panacea. detrimental. many had expected.'. impact on growth.. main arguments. distribution. He had three. First, because of the initial. With the phenomenal success of the East. of assets, the main beneficiaries of. Asian economies of Korea, Taiwan, Singapore. new technology, as noted above, would be the. and. — 29 —. Hong. Kong,. however,. development.
(6) studies took a decided turn toward optimism in the late 1980s. economic through. principally. in combination. the lens of neo-classical. economics.. institutions. that. the. to nurture. private. to. these. of economic. market. liberalized to. of their. was seen. According engine. Initial research. trajectories. payments, properly valued exchange rates and export orientation. The latter policies were. growth. was. main. the free. Open deregulated markets and trade were the prerequisites. generating. economies. analyses,. internationally. competitive. and, hence, the route to growth. with. strong. intervened. governmental in the. enterprise. market. amid a robust. regulatory framework (see World Bank, 1993). In makers on. the and. replicating. development,. 1990's, when many policyanalysts were embarking the. East. social. Asian. scientists. model. on. the. of left. and prosperity (see Balassa, 1988; or Lal, 1983). International financial institutions,. began to reconsider the proposition of stateled industrialization. It seemed curious. such as the IMF and World Bank, insisted. to them. upon the setting of conditions in so-called " structural adjustment" packages in exchange for low interest financial aid. The conditions. substitution industrialization in Latin America and other regions, in which a variant. were based on these free market. theories. that eventually became to be known as the "W ashington Consensus" (see Williamson, 1990). Upon closer examination, however, some political economists pointed out the strong. role of the. state. especially. in the. that after four decades. of import. of the state led model was the main theory underpinning the drive to development, they were going to initialize another of industrialization. and. round. urbanization.. The. emphasis on industrialization and trade was, according to these social scientists, a complete misreading. of the economic. history of the. NIC's that would lead to policy prescriptions. provision of credit and in the implementation of protectionist policies for infant industries.. compounding. Chalmers. 1998). There were no objections to policies to. Johnston. (1982) was the leading. poverty. economic dislocation. and creating. further. (see Cameron & North,. proponent in formulating a state-led theory of economic development laid out in his analysis of Japanese economic growth. This was. promote international. quickly followed by others using Johnson's train of thought in their research on the East. play an important role in growth with equity. Lefeber points this out in his expose. Asian newly industrialized. on the importance. countries. (NIC's).. trade in industrialized. products per se. Indeed, they believed market policies in trade and industrialization. of the rural. could. sector. in. In this model, the state "governed the market". development.. (Wade, 1990) and intentionally got the prices " wrong" (Amsden, 1989) in order to promote. equal distribution of wealth is not inconsistent. industrialization. &. are the impressive growth of the East Asian. Wyman, 1990;Haggard, 1989). By the mid 1990's,. economies" (1997, p. 8). However, as argued by. there appeared to be some agreement by both. Lefeber, market outcomes must be measured. market and political economists. against a strict social cost benefit analysis in. and. growth. (Gereffi. on the main. "It should be clear that a more. with a market economy.. The best examples. forces that propelled economic growth in the. order to determine their real contributions. NIC's: stable. society.. If the results demonstrated. societal. benefit, as was often. macro-economic. as low inflation,. surplus. policies. such. in the balance. of. — 30 —. to. negative. the case in.
(7) .',ER..-',.4rWV. developing. M21. countries,. M1'-'. suggest. They. were all preceded. market failure and the need for strong state. such. as Lipton. intervention.6. who largely. Ironically,. it. this. was. would. primarily. social. of. rural. scientists involved in Latin American studies. America.. who observed. rural. that. it was. the. reform policies in agriculture successful industrialization More specifically, distribution. timing. of. that lead to the. effort in the NIC's.. the reforms in the initial. of assets, i.e. the redistribution. cultivable land in the agricultural well as infrastructural to support. of. sector, as. and economic policies. these reforms, were instrumental. in paving the way towards industrialization and sustainable development in the NIC's. These "Latin Americanists" argued that to superimpose. revamped. industrialization. by. "agrarianists". (1977) and. focused. poverty. and. They. neglect. did. development. Griffin. (1979). on the extreme not,. levels. in. Latin. however,. place. within a comprehensive. strategy of industrialization and development. There was also no comparative perspective between regions.. It was this perspective. the Latin Americanists the importance. that brought. of agriculture. by. to light. in wholesale. economic transformation. As a result of this initial "push-back" on industrialization, there has been a renewed interest in agriculture policy and its role in development (see, especially, World Bank, 2007; Kay, 2009; Dethier & Effenberger, 2011;. policies on countries with dysfunctional economies and agrarian sectors, and with. Ravallion,. sharp social inequalities, would only condemn. emphasis on agriculture policies to generate sustained industrial growth and general. them to further crisis and underdevelopment. The initial works that adopted this thesis included North (1997) and Cameron and North (1998) who partially essay by Donnelly. built on an important (1984). Donnelly was. 2009).. This. essay. uses. these. studies as a staging ground to argue for a re-. economic. development.. The. re-orienting. of policy agriculture. towards the strengthening of and the rural sector is especially. urgent in those countries in the initial stages. one of the first social scientists to point out. of industrialization.. the importance implementation. middle income countries suffering from rural. of agrarian reforms and the of other social policies in. It is also necessary. in. the NIC's that lead to their vibrant industrial. poverty. In sum, a vibrant agriculture sector in the early phases of development is the key. development.. to growth with equity.. on North. and. sophisticated different. Finally, Kay (2002) expanded Cameron. development. in Asia and Latin singled. reforms. implementation. industrialization. policies. put forth. analysis. strategies. America.. out and recounted. of the agrarian to the. and. socio-economic. a. of the. Americanists the. role. of. pursued. in East. Asia. and. Latin. America. the importance. In this section, we shall establish. in the NIC's prior. significance. of the. it) in determining. trade. trumpeted. and. by his. were not the first to emphasize in. development.. of agriculture. the. reform (or lack of. the development outcomes. in East Asia and Latin America. In East Asia, despite. to note that the Latin. agriculture. Reform. His analysis. neo-classical predecessors. It is important. Agricultural. almost. transformation, studies. — 31 —. the. for the. fundamental. revolutionary-like field. most part. economic. of development overlooked. role of agriculture. the. in its rapid.
(8) —. economic development especially in the early. collusion with the Japanese. stages. in Jenkins, 1991: p. 207).. of growth.. Taiwan,. Korea. thorough. Most notably, in Japan, and. more. agricultural. recently. China. transformation. came. prior to and buttressed the industrialization effort for which these countries are well known. recently. Indeed, many social scientists have come to the conclusion that their. astonishing. accomplishment. of equity. with. growth is, indeed a direct consequence of their agrarian reforms (see Thorbecke & Wan, 2004; Kay, 2002; North, 1997). In contrast, Latin America's failure to address agricultural. reform. resulted. in unbalanced. growth, widespread poverty and economic underdevelopment. The failure to complete agrarian reform and the costs associated with it in terms of an unfinished. industrialization. stemmed. (Hamilton. cited. This collaboration. from the fact they were granted. power over the peasantry albeit within a Japanese colonial framework (Cummings, 1987). land. The Korean War and the thorough reform shortly thereafter effectively. eliminated. the. landed. influence over policy.. elite. and. The rationale. their behind. the American push for Korean agrarian reform was to defuse rural protest among an increasingly. mobilized peasantry. and thereby. enhancing stability throughout the country. Peasants in the south were well aware of the reforms enacted in the north and would not settle for less. security. In addition, the strategic. environment. and. in north East Asia at. effort has also been minimalized in much of. the time made the changes. the research on the region's economic history. Because of the extreme application in some of. of land ownership all the more urgent. China and North Korea were both threatening more. the ISI policies, it has taken much of the blame. incursions to the south including plans for full. for Latin America's failures.. renewed. discussion. seeks. to. The following. redress. the. politico-. in the structure. conflict and invasion.. Indeed, the. security threat continues to this day.. economic history of the agriculture-industry. The elimination. of great disparities. in. relationship and establish it as a central cause. asset ownership. for the success and failure in each region.. agrarian reforms dramatically altered the distribution of wealth in agriculture in Korea.. An examination. of the country. experiences. and the sweeping post war. of Korea and Brazil will be used and are. In 1945,48.9%of farm households were tenants.. representative. This figure was reduced to 7%by 1960 (Putzel,. of the differences in economic. development strategy in their regions.. 2000, p. 5). Conversely, full-fledged landowners in 1945 were only 13.8%of the rural households. This figure rose to 69.5% by 1965 (Putzel,. Korea In Korea. during. 20th century, weakened. to retain large. Japanese. the. by reducing. their political some. by. of their. Subsequently,. the. early. part. colonialism. traditional. landowners. co-opted. the. landed. of the. also highly concentrated. severely. Remarkably,. aristocracy. influence. status,. many. 2000, p. 5). Ownership of cultivated land was. In order of the. prior to the reform.. 48.6% of rural. households. in. 1945 did not own any land at all and only 2.9% of farm households. owned 63.4% of the land. allowed. themselves. to be. Japanese. occupying. forces.. (Putzel, 2000, p. 5). By 1965, these ratios were reversed: 51.1%of the households owned 64.8%. tarred. of the land (Putzel, 2000, p. 5).. large. with a "collaborationist. landowners brush". were because. of their. — 32 —. Land. reform. in. Korea. played. an.
(9) .',ER..,.4rWV. enormous. M21. M1'-'. role in increasing. incomes. and for In. higher. rising. meant. productivity and provided the basis an agricultural surplus for industry. exchange. for. landownership. incomes, peasants an environment. and. who previously. lived in. of economic insecurity. high risk, acquiesced to the extraction agricultural. surplus by the authoritarian. incomes. character.. Second,. in the countryside. allowed. for farmers to pay for family education. that urban industry. emanating. from rural areas.. workforce. contributed. state.. and invisible. Teranishi. (1997) explains these. Resources that flow "naturally" out. of agriculture to industry based on market mechanisms because of higher rates of return. the. Not mentioned the demand. was key in shaping. indirect. "taxation". is. to. the. 1984). Finally, growing incomes in the rural sector expanded industrial goods.. While. and. This educated. immensely. productivity gains in both agriculture and manufacturing during the period (Donnelly,. in industry are considered invisible transfers. direct. had access to a. and. methods both visible. This. stable supply of educated and skilled workers. of the. This was done through concepts.. despite its authoritarian. domestic. market. for. by Putzel, however, is. profile of the rural sector that the type of production. deemed a visible transfer. In Korea, there was significant indirect taxation by way of state. that would take place in industry. Rural consumption patterns led to labor intensity. mandated. in the production. high input prices of fertilizer, seeds. and other necessary resources.. Furthermore,. the. staple. prices of rice and. other. foods. produced in agriculture were fixed below their market prices although they still allowed for meager profits (Kay, 2002, p. 1080). Fixed food prices acted. as a subsidy. for urban. process. factor utilization.. Thus industry. decent wages in urban. for manufacturers.. reinforcing. Ray, "agricultural output increased by 3.2%per. could act. as a magnet to attract the labor surplus in rural areas giving it an opportunity to earn. dwellers and helped hold down wage costs Nonetheless, according to. as the marginal. gains in rural income were spent on relatively technologically simple goods (e.g. clothing and household goods) that favored high labor. a pattern. manufacturing. of expanding. and. incomes,. annum from 1951to 1971 and by 3.8%from 1971. production and economic growth. Even today, low Korean unemployment rates are evidence. to 1982 which amounts to annual growth rate. of industry's. of 2% per capita in the latter period" (1998, p.. and appropriate. successful. absorption. of labor. factor utilization rates.'. 455). Putzel. (2000) clearly outlines. Korea's. Brazil. impressive track record of growth with equity.. Historically, Brazil's rural sector, as much. He firmly establishes the impact that agrarian. of Latin America's, has been characterized. reform. distribution. of assets. two subsectors. and income, and the subsequent. had. on. the. effects of. has. been. or constituents.. a prosperous. initial equality. prior to high speed growth. elite with access. had on growth. itself.. and. there. were three. contributed. According. to Putzel,. ways in which. to growth. equal land distribution stability and legitimacy. (2000, p. 9).. equality First,. gave rise to political for the government. government. Secondly,. there. large. by. First, there landowning. to capital, state decision-making. largesse circles.. has been an impoverished. small farm and landless peasant. sector with. little access to capital and almost no access to the state.. — 33 —. Whereas. Korea underwent. a.
(10) —. thorough agrarian reform prior to full-fledged. & Mueller,. industrialization,. productivity yields played almost no role in growth. The focus as far as government. in Brazil. industrialization. was grafted upon this dualistic rural structure. The consequences. of this were calamitous. in terms of income distribution. and overall. growth. Brazil represented a classic case of "t oo much squeeze on too little surplus" in. 2006, p. 4).. policy was concerned overall output through. In other. words,. was to increase the expanding cultivable. land rather than through. modernization. (i.e.. that in the end left not enough. reform) of agriculture. In the 1970s,and onwards, once it became. financial and material resources to construct. apparent that new cultivable land was nearing. a buoyant industry.. its. agriculture. In addition, according to. exhaustion,. the. government. strategies. the squeeze was particularly. agricultural modernization with the aim of increasing productivity (Mueller & Mueller,. harsh. on the. peasants: "During the ISI period, landlords were able to limit the transfer of surplus out of agriculture. at least as far as their interests. fairly successfully. switched. Kay's description of Latin America in general,. to a program of. 2006). However, according to Hudson (1997), the. modernization. program. was primarily. were concerned, while ensuring that the squeeze was borne by the peasantry and rural. geared toward large landowners and that it eventually led to their transformation into. workers who because of their poverty could not be squeezed that much" (2002, p. 1094).. large agribusiness capital intensive farms:. Nevertheless, experience onset of. Brazil's. agriculture. some impressive industrialization.. GDP grew. did. Technical change involved the development and adaptation of greenrevolution technologies, geared mainly toward large agricultural operations that had important roles for mechanization and chemical inputs. Regarding the agribusiness complexes, the government. growth at the Agricultural. 4.2% between. 1949 and. 1969. (Hudson, 1997). This impressive growth was related to two factors. First, there was a horizontal expansion of lands. for. agricultural. produce. As demand. increased,. provided strong incentives for the creation and expansion of processing industries and for the development and modernization of agricultural input industries (para. 4).. the. government reaction was to incorporate new cultivable land from the frontier areas of the country and sell them to the landed elite at concessionary order. to. ensure. transportation. prices.. production. to market,. Second, and. the. in. smooth. government. the. implemented a massive road building program to access these newly incorporated is important expansion. lands.. It. to note that the impact of land on. agricultural. growth. At the same time, in order to extract the maximum amount of surplus from agriculture,. should. Brazilian. number. of. government direct. and. price controls, export taxes or quotas, import subsidies or taxes. Indirect taxes. As pointed out by. were mainly accomplished. Patrick,. in vegetable. macroeconomic. crop. output, which was increasing at 4.3%annually,. also. could be attributed. Overvaluation. this twenty. to land expansion during. year period. a. taxation. policies. Direct taxation included agricultural. not be underestimated. 82% of growth. implemented indirect. (cited in Mueller. — 34 —. led. through. explicit. policies to support. ISI that. to exchange depressed. rate. overvaluation. the. prices. of.
(11) .',ER..-',.4rWV. agricultural. M21. exports. M1'-'. relative. to non-tradable. peasant farms) towards both urban areas and the already more advanced and capitalized sections of agriculture. In this sense it is not strictly correct to talk about taxation on or subsidization of the agricultural sector in Brazil (p. 59; my addition and emphasis).. goods. Overvalued exchange rates also acted as a surplus transfer mechanism by increasing profitability and income in protected industry at the expense of reduced profitability and income. in. agriculture.. Moreover,. farm. households were forced to use their reduced incomes to purchase relatively high priced consumer. goods. produced. by. Finally,. protected. domestic. industry.. exchange. rates were helpful to industry. overvalued. The representative poverty. by. north-east. and. of. and. that. numbers of the. cities.. harmful. clearly. leads. to agriculture. by. tradable (i.e., domestically more expensive.. making. produced). noninputs. that. plagues into. migrants. and. Brazil. is. forms. of. this. country. unmanageable. to marginal. economic. history. to the conclusion. development. urban. that. areas of Brazil. agricultural. industrialization. was. of the peasantry.. for Brazil. most of the accrued agricultural taxation resulted from indirect methods — i.e. through the effects of the market. that. The. of. legendary. translated. of rural. on the back. Oliveira (1985) argues. the. equality. has. allowing for the cheap import of necessary capital goods and inputs and, conversely,. area. on the terms. The. of. Agriculture-Industry. Dynamic. Castel-Branco's (1997) conceptualization the supply and demand components. trade — and that visible impacts were nearly negligible. Schiff and Valdes (1998),. of. however,. explaining the dynamic between agriculture and industry that engenders real development.. estimate. that. the terms. of trade. bias against agriculture was rather mild in Brazil as compared to other developing. of agriculture. Castel-Branco. is a useful starting. notes. that. there. point in. are. three. countries: 8% compared to an average of 30%. main constraints. in 18 other countries during the period from 1960 to 1984 (p. 228). While this may be true,. exchange and production of foodstuff. Both Korea and Brazil were more or less successful. Oliveira (1985) makes two important. in overcoming. that temper. points. Schiff and Valdez' conclusions:. to supply: savings, foreign. these bottlenecks.'. In terms. of savings, as outlined above, the agriculture. first, in the previous period from 1953 to 1964,. sector in both countries were able to generate. Brazil's bias against agriculture. a surplus. was 40%;and,. secondly, the bias was disproportionately against. the peasantry. laid. after the 1960's when. a credit policy was introduced. to lessen the. bias against large capital intensive. farming. by. a number. of. policies to turn the terms of trade against agriculture and in favor of industry. The labor surplus in agriculture. in both countries. also played its dutiful role in supplying a low. by providing it with low interest financing to. wage workforce. purchase inputs':. capital. Thus, in this last phase of the period income transfers occurred basically from one section of agriculture (i.e. small. implementing. to industry. accumulation,. savings. that enhanced and. profits. (particularly in the case of Korea). In Brazil, through agricultural exports, and Korea, through. generous. both countries. — 35 —. US. aid. and. exports,. were able to secure enough.
(12) foreign. exchange. in the. industrialization10. emphasizes,. initial. period. of. However, as Castel-Branco. in the long run industry. itself. industry's. manufactured. has acted as a constraint accumulation, Small markets. earnings. impact. investment". to. foster. industrial. (1997, p. 3). In this, as we will. note below, Brazil failed dismally. Finally, in respect to the foodstuff constraint, Brazil was able to supply the necessary agricultural produce and raw materials for the new migrants flocking to the urban centers by first expanding agricultural then by increasing. lands horizontally. productivity.". and. Similarly,. on. profiles. industry. on gross. have. also had. production. and. Without catered. capital. a negative consumption. a large domestic market, to those who had the. purchasing power consumer markets, wealthy.. This. profits and industry expansion.. must "generate most of the foreign exchange necessary. products.. to participate in the namely the relatively. In sum, the small domestic market. failed to stimulate the production of, and the "d omestic demand for, those labor-intensive, consumer goods — such as clothing and. Korea was able to do this by making huge. textiles. gains in productivity through infrastructural and human resource investments and, more importantly, through the redistribution of. possess a distinct comparative (Mellor & Adams, 1986,p. 293).. rural assets. It is on the demand side where Korea. opportunities. and Brazil diverge sharply and, hence, have very different outcomes in terms of growth. employment. However, industry has been unable to absorb the new migrants because. and development.. the production. In Korea's case as explained. earlier, agrarian reform had a tremendous impact on rural incomes, the consumption patterns. These in turn reinforced each other and fostered a positive sequencing of growth with equity. Brazil's agrarian failed. forward. and. horizontal. to produce. backward. expansion. food production. these. Brazil's. for sufficient. but failed to generate income. capital. of productivity intensity. earning. for higher income consumer. on the. policy. to import. which. acted. "cheap". as an. labor-saving. machinery. Third, rural migrants America. have. destitution. to cities in Latin. been left to living a life of. in shanty. towns. ( "favelas" in. Brazil's case) in urban centers. state. through. income. to the cities in search of. incentive. urban. increases. countries advantage". in the rural regions has led to. rate. In the. phase. of. exchange. for the vast majority of the rural population. subsequent. lack. a flood of migrants. positive. linkages.. allowed. Second,. developing. products lends itself to capital intensity. Capital intensity and weak labor absorption in industry was exacerbated by the overvalued. profile and ultimately on income distribution. structure. — in which. Brazil. These new. indigents have become wards of the and a strain is now. on government. faced. with. an. coffers. enormous. larger commercial. farms, rural displacement. challenge of what to do to bring these now. and unemployment. became widespread.. second. Low rural incomes in Brazil and Latin. and third generation. the fold of society.. Poverty. migrants. into. and the acute. America have had three major consequences.. inequality in Brazil in both the rural and urban. First,. areas, as a direct result of its industrialization. the. lack. of income. represented. high un- and underemployment. by. in the rural. sector has resulted in a small market for new. policies, is now the biggest impediment to Brazil's modernization and future long term. — 36 —.
(13) .',ER..-',.4rWV. M21. M1'-'. growth. There is one final point of importance. Asian policy makers.. in reference to Castel-Branco's analysis of the. outflows. demand factor role in the agriculture-industry. implementing. relationship.. Asian governments. invested heavily in rural. public infrastructure systems, education. such as roads, irrigation and health facilities to. It is the. expansion. as the. Industry's. rising. and. issue of industrial. main engine demand. agricultural. of growth.. of manufactured. consumer. and investment. To. buttress. counter-balance from. the. agriculture, agrarian. rural. reform,. development.. Their. impact. developed countries is clear on this point.. investments were absent in Latin America. Therefore, as Teranishi (1997) points out,. all economically. advanced. countries,. high. be underestimated.. productivity gains in industry have always led to a decrease in agriculture's share of GDP. while. output. Accompanying agriculture's fall in output, industry becomes the focal point. to be a substantial. of investment,. production,. and. economic. there. and. Brazil, ISI. of. there also needs. amount of gross investment. going into agriculture as wel1.12 This lesson was not learned until recently in Latin. the agriculture terms of trade turns positive as result of government efforts to protect In Latin America, including. These kinds of. resources out of agriculture,. America. Another. competition.. productivity. needs to be a net transfer. growth. Eventually, as seen in Europe, North America and Japan, through public policy. agriculture against international. and. East. on. cannot. output. many. to. goods places it at the center of growth (CastelBranco 1997, p. 4). The historical record in In. agricultural. surplus. in addition. point. on. the intersectoral. that needs unmentioned. agrarian. transfer. reform. of resources. highlighting but often goes in the literature is the efficient. failed to produce an industrial structure in the. allocation of resources engendered by reform. Takeuchi and Hagino (1998) in their research. initial stages capable of taking on the role of. on. engine of growth.. underscore. Instead, underdevelopment. in both agriculture. and industry. resulted in. economic external and internal imbalances that have hampered development in general.. the. transfer. as industrialization due. ensured. inelasticities. balanced assets. industrialization. growth. prior. to. drive.. by redistributing embarking. on. its. in the. Philippines. They recognize. to. advances.. productivity. This is largely. differences,. in food as general incomes rise,. industry compared to agriculture.. of industry. the case, a bias in policy towards. faced a barrage. biased. policies through. much the same as Latin America a variety of discriminatory practices. income. and finally, to the larger investment returns in. As noted, Korean. farmers. like. Castel-Branco and others that agriculture's share of GDP output will naturally decline. In contrast East Asia and Korea in particular rural. flows. this point.. and, eventually. This being industry. services, is indeed warranted.. However, Takeuchi. and Hagino. (1998) note. in order to extract surplus from agriculture.. that in the case of the Philippines, inequitable. Yet, East Asian countries were well aware that. distribution. too much extraction. fostered an inefficient allocation of resources. or neglect of agriculture. would be a constraint on industrialization development.. and. An inexpensive food supply for. the new urban work force was paramount. in agriculture. of income (i.e. land distribution) and industry. which hindered. and distorted development in both sectors.. for. — 37 —.
(14) —. A transfer of capital out of agriculture will lead to sustained growth only if this is done efficiently towards more socially profitable investments coupled with a relatively balanced income distribution. In the case of the Philippines, however, some great financial conglomerates are criticized for creating highly oligopolistic market structures which are seen as responsible for the inefficient resource use and uneven income distribution (p. 15).. their impact sector.. on the rural. The effect these. non- agriculture incomes. and,. especially,. significant.14. on. poverty. reduction. In most developing. reform. that. and a fairer. economic. distribution. resources. unproductive. without. were. agrarian of assets,. steered. toward. business ventures which in the. end impaired short and long term growth. This occurred through state corruption which created. and. further. exacerbated. distorted. investment incentives. The Philippine case resembles to a large extent Latin America's experience where the landed elites have had a foot in both agriculture and industrial production. Their rent seeking behavior is well evidenced in their ability to influence and capture public policy in both sectors. The elites were able to manipulate advantage. policy to their. and, inversely, to the disadvantage. are. countries,. where well over half the labor force is directly engaged in agriculture and where the majority of the poor still reside, it is imperative redress. the. agriculture. economic. balance. to. between. and industry.. For Mellor and Adams They contend. have on. fomenting growth in the rest of the economy. that promote as credit and. (1986), policies. technological change, such financial incentives for the. purchase of high yielding seeds, fertilizers and irrigation, lead to increased incomes through higher productivity farmers typically increments. and profits. Land owning spend 40% of their income. on such locally produced. such as textiles,. transportation. goods. and health. services, and housing (Mellor & Adams, 1986, p. 292). The small local enterprises that produce such goods tend to be highly labor intensive and therefore provide employment opportunities increases. to the rural poor. This in turns. the purchasing. power of the rural. poor which leads to further spending in the rest of the economy and "to new rounds of. of general social and economic welfare.13. growth" (Mellor and Adams, 1986, p. 293). In sum, poverty reduction is the direct result. Forward. of increased. and Backward. Agriculture Mellor. Linkages. between. and Industry (1999), Mellor. and. Adams. (1986) and Lefeber (1997) argue that many developing countries, particularly in Latin. farm earnings. spent on locally. (i.e. rural) produced, labor intensive goods and services that drives employment for the rural. population.. In terms. of overall. economic growth and development, a rise in. America and Africa, have gone too far in the. rural incomes increases the demand of labor. neglect of agriculture. intensive products. surplus.. and the extraction. This is manifested in the imposition. of at times unreformed. extreme agriculture. ISI policies sector.. one of the first economists need. of its. for rising. upon. an. Mellor was. to emphasize the. agricultural. incomes. and. utilization. that lead to better factor. (i.e. labor). in urban. industrial. production (Mellor, 1999). Furthermore, labor intensive manufactured goods are more in line with the natural advantage. of developing. time, firms specializing. — 38 —. comparative. countries:. "Over. in the production. of.
(15) .',ER..,.4rWV. M21. M1'-'. these commodities can acquire the experience. reduction of global poverty and in the partial. and. achievement. of many. Development. Goals.. efficiency. needed. world market" On the. one hand,. competitiveness current been. to compete. international. account. bottlenecks.. industrial. would solve the trade deficits. which. have. the root of hyperinflation. sales. on the. (Mellor & Adams, 1986, p. 293). and often. and input. On the other hand, increased. on. world. markets. industrialization, earnings. The. would. employment. development. expand. and. strategy. above by and large describes. Chile. and. much. experienced. of the. of Latin. dramatic. stabilization. America. have. Most of the reforms. focused on macro-economic including. trade, the. Brazil,. economic change over. the last two decades. have primarily. Millennium. Similarly,. realization. liberalization. of. of low inflation. and. wage. policies encouraging real exchange rates. In Brazil, government policy has gone as far. outlined. as to provide low income households with direct cash transfers. Indeed, as Ravallion. the historical. experience of East Asian countries such as Korea, Taiwan and, more recently, China,. (2009) points out, Brazil has made the most recent gains in closing the poverty gap when. Thailand, Malaysia and others. The equitable. compared. distribution. enlightened. agrarian. of assets. as a consequence. of. reform was followed by productivity. labor. intensive. industries.. Rapid. industrial expansion functioned as a positive " pull" factor on surplus labor in agriculture absorbing it quickly into manufacturing. agriculture. sector. characterized. by low productivity, high land concentration and high unemployment, operated as a. governments. gives a great sense. of optimism for the future.. Brazil can bask in. the limelight now that it is the sixth largest economy in the world having overtaken Britain. Today, Brazil is viewed as a future economic powerhouse and essential driver of global growth together with its BRIC counterparts.. This is in contrast to Latin America where a backward. Brazil's. social policy under recent social. democratic. gains and profits in agriculture which created synergies throughout the rest of the economy. In the end, these countries saw the rise of vibrant. to either China or India.. This paper. has not acknowledged. all. the remarkable economic accomplishments in the developing world. Unfortunately, these achievements. must be tempered.. Much. negative "push" factor. It induced the massive. of the progress. migration. poverty over the past four decades is the result of China's efforts to alleviate the most. into. of impoverished. the. capital. margins. intensive. opportunities. of. rural populations cities.. industry for. Moreover,. offered few work. these. new. desperate. migrants.. extreme forms of rural deprivation.. economic economies,. Much the. progress. developing. industrialization. has. been. world. since. period. of the. made the. in. initial. 1950s and. 1960s. Great strides have been made in the. of. For those. populations living in rural areas outside of China, life is still a daily challenge. Thus, notwithstanding. Concluding Observatione. in the global reduction. the. stabilization those. success. of. in some. developing. countries. that have not undergone. including. macroBrazil. a thorough agrarian. reform are still suffering from extreme social inequalities. and pervasive poverty especially. in the rural sector.. — 39 —.
(16) This paper light. on. both. theory. the. was an attempt. bias and. to shed. against. agriculture. practice.. In the. in first. section, a general review of the literature development against. discerned. agriculture. a. ubiquitous. on bias. and a misunderstanding. the. two. sectors. enlightened while. policy. the. case. exposed. the. would. highlighted. perils. as. The. intent. of this. the. resource. need. to. from the. and. equal. direction. and. quantities. 1950s to 1980s concentrated surplus. of. Most economic theory extraction. on the necessary. from. agriculture. in. in. initial and. agriculture. policies in successful East Asian countries by social scientists involved in Latin American development that there was a. and. more comprehensive. of their. Industry,. revealed. become. economic. history.. that growth. Their. analysis. with equity in these countries. pointed. out. engine. the. a fundamental economic. of free market. of. Agriculture. thinking of development has at last fostered extensive research on the role of agriculture in development.. support. and. redistribution. industrialization. of land. assets. had a significant. propelling growth Brazil's relative. in industry. neglect of. prior. to. approaches. impact on Conversely, agriculture. issues. alike. the principal This important. must. goals paper. economic crisis in the 1990s. The latter was. vital. coupled with an extreme poverty problem in. require. further. both rural and urban areas that still affects. growth. of investment. Brazil today.. as investment. the. final. section,. and intersectoral. the. transfers. coherent. areas. health. system,. upon.. No. research.. has. lose sight. covered. all in. of. one. these. and been are. the. devising Before. to comment. on. of which the. in human. only. of. among. development.. First,. in education. doubt,. never. and. strategy.. like. of development,. between. semi-. be considered. involved. development I would. synergies,. — 40 —. not. variables. concluding,. poverty. income. of economic has. basic. Practitioners. should. as they. most. and. middle. countries.. and. stimulate. importantly,. of the. equity. for. for. periods. demand. More. to addressing. plays. early. can. is one. especially. a. In. in an. synergies. the. Supply,. particularly of the peasantry and small farmers resulted in slow industrial growth and. linkages. must. here. industry. areas. industrialized. these. as. economy.. sector,. of growth. in. growth.. of rural. policy-makers. the. others,. decline the. in creating. with. accelerate. their. In Korea,. role. linkages. the second section, demonstrated the impact that different policies in agriculture had on trajectories.. and. emphasized. development. reduction. development. as. industrialization.. other. The case studies of Korea and Brazil, in. motor. too. paper. economy.. and not, as originally thought, to be the result This re-. within service. the. and. inevitably. later. principal. The. in the. Castel-Branco will. least. between. many. noted. of growth. and. advanced. are As. by. at. development.. industry. agriculture. a main. industry. linkages. ignore.. the. as a necessary. backward. to. however,. of. proposal.. to underscore. to. stages. It. author's. first". was. Asia,. neglect.. agriculture. and. important. was primarily the result of the initial support of agriculture in the form of agrarian reform neo-liberal policies.. paper. of. America. this. "agriculture. complement. the. East. Latin. to interpret. recognize. order to induce industrial growth. It was not until a reinterpretation of economic. understanding. an. forward. and. and. of agricultural. be a mistake. argument. benefits. Korea. of Brazil. of the linkages between the sectors including transfers.. in. the. two will. impact. capital,. on such. in a competent lightly also. touched important.
(17) .',ER..-',.4rWV. M21. factors in development.. M1'-'. An economy can only. be as vibrant as its human resources. some developing. economies,. appear to have leap-frogged yet have managed. Second,. such as Brazil, agrarian reform. to attain. high economic. growth rates. Is this strategy replicable, or even desirable, for countries such as in sub Saharan. Africa which are just embarking. the road to full-fledged industrialization?. on. Also,. can countries, like Brazil, which have yet to confront their rural poverty, solve this issue without some kind of agrarian reform? Given the wealth disparity within and between both urban and rural sectors, is long term growth sustainable via this development strategy? These questions indeed require answers.. author. wishes. , Lefeber argues that market failure is a more apt description for the lack of effective demand during economic recessions in advanced capitalist economies. In contrast, developing countries lack of longer term effective demand particularly among low income groups is largely the consequence of labor surplus relative to other resources (Lefeber, 1997,p. 2). 7 After. Korea's. successful. to. thank. Professor. Lilian Hatano for her valuable comments and suggestions in improving this work. Also, the author is indebted to James Jensen for his assistance in proof reading an earlier version of this paper. Needless to say, all remaining errors are entirely the author's responsibility. industrialization. from 1960s through to the 1980s, industrial factor utilization has moved from labor intensity to capital intensity in the mode of production as Korea has climbed the technological ladder precipitated by the relative scarcity of labor. See, for example, Amsden (1989) for a history of Korea's industrialization and labor absorption rates. 8 Kay (2009) also emphasizes. Endnotes. 1 The. 6 In fact. the differences. between the state's treatment of peasant and large landowning farms. He points out that because Lipton (1977) fails to make this distinction, ultimately his analysis is flawed. According to Kay, it is imperative to take into account the agrarian social class structure in order to provide clarity to the historical mechanics of political and economic growth in the developing world.. 2 For a cold war critique of Marxism against 9 Brazil performed marginally. the peasant see Rostow (1955). 3 For a good discussion. on the supply and. demand characteristics of different theories of agriculture's role in development see CastelBranco (1997). His paper is discussed in more detail later in this essay. 4 See. for. example. Griffin. (1979) . Some economists and theorists even went beyond Lipton's call for reform to suggest much more 'progressive' agrarian options. See, for example, Byres (2004) and Karshenas (2004). 5 For a sense of the pessimism during period see Easterly, 2002.. this. better than the. rest of Latin America in terms of these supply constraints. In the rest of Latin America, there were constant shortages of foodstuffs, high rural unemployment and massive poverty in the agrarian sector as a consequence of highly neglected domestic agriculture. The end result was a lack of surplus to finance industrialization. See North & Cameron, 1998; Kay 2002; and Kay, 2009. 16In Brazil. , however, in the later stages of ISI, the constant lack of foreign exchange spawned deficits, spiraling inflation and ultimately economic crisis and paralysis (see Williamson, 1990or Easterly, 2002). 11But. — 41 —. , as mentioned,. this occurred. at the.
(18) —. expense of the rural rural modernization. 12 Karshenas. peasantry. and overall. (2004) makes the same point in. his research of Japan and Taiwan's history of net and gross resource transfer flows between agriculture and industry. He emphasizes that a dynamic framework of analysis of the resource flows between the sectors will better capture their overall impact on growth: "Withi n a more dynamic framework the net surplus transfer in each period becomes less important than the growth enhancing interactions between sectors as epitomized by the gross flow of resources..." (2004, p. 174; my emphasis on "interactions; emphasis of "gross" is in the original). 13 The implication of Takeuchi. 15 It. was. that. economic. vacuum. pointed. and. political. out. policy an. entirely. forces. does. not. would agrees.. underpinning. underway. Professor take. understanding. context. author. by. of. be. the. place the. desirable.. Research. on. economics. and forthcoming. Hatano in a socioThe. the. social. is already. in another. paper.. References. Adelman, I. (1984). Beyond Export-Led Growth. World Development, 12 (9), 937-949. Amsden, A. (1989). Asia Next's Giant: Korea and Late Industrialization.. South New. York: Oxford University Press.. and Hagino's. research is that much more attention needs to be paid to the small farm. There is a wealth of research (see, for example, Berry & Cline, 1979; Lipton, 1977 or Griffin, 1979;and more recently, Chand, et al, 2011) that documents superior productivity and efficiency in the small farm sector vis-a-vis large farms. The main conclusion of these authors is that policies which result in resource allocation towards large farms is unwarranted and market distorting and should be revised and corrected. However, there have been critiques from both the right (see Mueller & Mueller, 2006) and from the left (see Byres, 2004). These critiques suggest that a new paradigm is necessary. With the arrival of globalization, new technologies and the subsequent integration of agricultural production into global food supply chains, scale economies favoring large farms has negated the small farm efficiency arguments. Obviously, the ramifications of the arguments from the left and right regarding agrarian structures lead to very different conclusions of the main problems and policy recommendations.. Balassa, B. (1988). The Lessons of East Asian Development:. An Overview,. Economic. Development and Cultural Change, 36 (3), 273-290. Berry,. R.A. & Cline, W. (1979). Agrarian. Structure and Productivity in Developing Countries. University. Baltimore: Press.. Johns Hopkins. Byres, T. (2004). Neo-Classical Neo-Populism 25 Years On: Deja vu, Deja Passe. Towards a Critique. Journal of Agrarian Change, 4 (1-2), 17-44. Cameron, M. A. & North, L.L. (1998). Development Paths at the Crossroads: Peru in the Light. of the East Asian. Experience, Latin American Perspectives, 25 (5), 50-66. Castel-Branco, C. (1997, November).. Strengths. 14 Lefeber (1997) in more general terms and. and Weaknesses of the Analysis of the. Adelman (1984) in more expansive terms also argue this point forcefully.. Relationship. — 42 —. between. Agriculture. and. Industry. Retrieved March 10, 2012 from.
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