AGRICULTURE FOR ECONOMIC DEVELOPMENT IN DEVELOPING ECONOMIES

Agriculture for Economic Development in Developing Economies

Economic development and economic growth

Economic development can be seen as the augmentation of economic quality. It generally evolves from an enhancement in quality of life of the inhabitants of the economy. Economic growth, on the other hand, is more concerned with the “quantity” of economic output, or economic worth in monetary terms.

Economic growth is essential for creating the resources necessary for better living which can eventually result in economic development; however, economic development makes economic growth sustainable. Development of the people will improve self reliance of local communities, social justice and participatory decision making. Economic growth does not, however, inherently contribute to human development, because, there must be social, political and environmental values put in place to achieve it. Although, it can be generally agreed that one of the most prominent features of a developing economy is in its display of national self-reliance. In other words, such an economy will have an industrial sector functioning with high capacity utilization. Such an economy will be able to feed itself, generate primary goods for industrialization, process these resources and sell locally as well as export.

The significance of agriculture in economic development of a developing nation

Now, several have contended that industrialization is the backbone of any developed economy, but for a developing economy, is that really true? Let’s look at agriculture.

In a developing economy like Nigeria, agricultural development will enhance Nigeria’s chances/prospects of economic development, based on some significant facts:

• Nigeria is labour rich/abundant and capital scarce, thus it will be easier for her to fund agricultural development without having to borrow so much from the outside world;
• Industrialization can be easily woven into the economy for further development through the processing of simple agricultural produce (for starters), and as the agro-processing manufacturing business grows, it can attract foreign investors, which then will bring about larger scale agro-processing industries, further enhancing economic development through job creation, increase in per capita income, influx of foreign technology, increase in technological know-how of the locals, etc;
• Agriculture on its own is the greatest avenue for employment generation, food creation, poverty alleviation (right from the farming of the produce to trade, to processing of the produce);
• Agriculture is more labour than capital intensive, which is what Nigeria needs and can afford on its own (given its natural factor endowments);
• Produce farmed from for export may have low price elasticity in the global market, but if unique processing methods are used, Nigeria can create a niche for herself with a variety of products that will have higher price elasticity in the global market;
• Most forms of industrialization, pharmaceuticals and cosmetics all stem from and require agricultural products as input for production.

Simply put, both agriculture and industrialization will promote human and environmental development, transport and communication facilities, healthcare, etc. Agriculture will only get the developing nations there easier and faster.