Why agriculture is important

For a study of development economics, agriculture is fundamental, especially for the poorest countries.

Corresponding lesson: http://mruniversity.com/why-agriculture-important

Most development economics,

especially at low levels
of per capita income,

is about agriculture.

In poor countries, agriculture
simply is most of the economy,

and for most of the last 12,000 years,

agriculture has been
the most important economic sector

in all regions of the world

until, of course,
recent industrialization.

The advent of cheap readily available food

is one of the greatest advances
in human history.

It has meant that human beings

can turn their attentions
and energies away

from simply finding something to eat

to building more important tools
or to creating more art and music

or to spending more time with other people

or whatever it is they want to do.

Cheap food has enabled all of this.

It's common consensus that increases
in agricultural productivity

are the most effective means
of poverty reduction

especially for people living on,
say, a dollar or two a day.

The growth in agricultural productivity
brings at least two benefits:

first, real incomes
from farming employment can be higher;

and second, food is much cheaper
and easier to get.

Agricultural revolutions are, in fact,
the precursors of industrial revolutions.

The Industrial Revolution in England,
in the 18th century,

was preceded by significant advances
in agricultural productivity.

The success stories of economic
development in the 20th century

were again preceded by advances
in agricultural productivity.

Agriculture is a base upon which
an economy can build further growth.

Furthermore, simply having enough to eat
brings many indirect benefits.

For instance, imagine a child
going to school hungry.

The child probably will not learn
very effectively.

Imagine a child growing up hungry.

The child will be more prone to diseases.

The story of economic development

is, in large part, a story of cheap
and readily available foodstuffs.

To read more on some of these points,

look at this reference

or google "agriculture poverty reduction."

Transcriber: Michel Smits
Reviewer: Maurício Tanaka