Skip to main content



Agriculture in the World Economy


Chapter 1. Agriculture in the World Of 1975 General Picture of Trends

The long-term character of the basic problems of world agriculture probably justifies a working assumption that the situation in 1975 will be mainly the result of factors and trends that can be currently identified. This is the approach that will be adopted in this paper. Nevertheless, it may be necessary to speculate on the advent of new policies, and to attempt a judgement as to their possible effects on agriculture. Within the limited scope of a few pages, one cannot do more than try to sketch the main lines of likely changes.
E. M. Ojala

Chapter 2. The Desirable Level of Agriculture in the Advanced Industrial Economies

The desirable level of agriculture in the advanced industrial economies is not a simple concept which can be established independently of the general environment of the particular economy. Some of the advanced economies, such as Canada or the United States, even if now considerably industrialized, have a predominantly agricultural background of history and rich agricultural resources. And the plains of Western Europe, even if now one of the world’s greatest centres of industry, led in the development of the modern economy largely because they represented one of the richest agricultural areas of the temperate zone.
E. A. G. Robinson

Chapter 3. The Search for New International Arrangements to Deal with the Agricultural Problems of Industrialized Countries

To most observers agriculture comes the closest of any industry in modern society to meeting the conditions of competition. But, in almost every industrial country in the world there has developed a series of governmental programmes for agriculture which depart widely from the free market. This intervention is too widespread in countries where the agricultural population is a distinct minority to regard it as merely the exercise of rural political power. Instead, agricultural programmes must be regarded as a search for new institutions that will be more satisfactory than the unregulated market for the production and exchange of farm products.
Dale E. Hathaway

Chapter 4. Free Trade and Planning in the Common Agricultural Policy

In order to understand the general problems of the common agricultural policy, which are the subject of this short paper, it is necessary to know a few essential facts concerning agricultural development during the past decades which are at the root of the situation today. The best that can be done in the space is to recall these facts, almost in the form of a list.
Mario Bandini

Chapter 5. The European Common Market and the Move Towards Self-Sufficiency in Food Production

The aim of this paper is to show how the creation of middle-term forecasts (provisional projections) can be used to help define objectives in agriculture and food production and, consequently, to facilitate the drafting and implementing of political measures needed to realize these objectives. The economic importance of the Six and the changes which mean that a Common Agricultural Policy is, from the outset, essential, have naturally led me to compare the actual dimension and prospects of European agriculture with the basic principles of the Common Agricultural Policy.
Claude Mouton

Chapter 6. Problems Arising for the Agriculture of a Developing Country by Virtue of its Association with the European Economic Community

In this paper I mean to do three things: (a) to outline the reasons which may lead a developing country to seek association with the European Economic Community; (b) to analyse briefly the problems which such a country will have to resolve if it is to derive any economic benefits from its association with the European Economic Community; (c) to examine the particular nature of the effort which an associated developing country will have to make in its economy to solve the afore-mentioned problems with respect to its primary sector.
D. J. Delivanis

Repercussions on Developing Countries of Present Policies in Industrial Countries


7. The Changing Patterns of International Trade Problems of Under-Developed Areas

The general theme of this Conference is economic problems of agriculture in industrial societies and repercussions in developing countries. My specific assignment is to deal with international trade problems of under-developed areas. I should, therefore, try to throw some light on the question whether or not, or to what extent, there are influences upon the trade of less developed countries that emanate from the economic problems of agriculture in industrial societies — or from the circumstances which create these problems — and from policies which these societies, all of them or some of them, apply as a result.
J. H. Richter

Chapter 8. The Changing Character of International Trade and the Problems of Under-Developed Regions

The subject of this paper, on which I was invited to speak, has been amply covered in special investigations of the UN Secretariat, FAO and other international and regional bodies, in the works of many economists, and in numerous papers.1 Finally, it has been com-prehensively discussed at the UN Conference on Trade and Development the proceedings of which offer a wide field for further investigations into the present-day trends in the development of trade. For this reason my task, as I see it, does not consist in attempting to elucidate all the aspects of the problem in hand. It would appear far more expedient to limit my report to brief comments on some problems associated with the trends in the development of world agricultural production.
V. Martinov

Chapter 9. Repercussions of Food Surpluses in Industrialized Countries on Economic Growth in Developing Countries

Food surpluses in industrialized countries owe their existence mainly to two phenomena, namely, spectacular improvements in agricultural science and technology and effective price and income support policies for farm products and farm producers. The former have made it technologically possible and the latter have made it economically inevitable to grow more food than is needed by the populations concerned. This is what some of the industrialized countries, notably the United States, have succeeded in doing. At the same time, nearly all developing countries, accounting for two–thirds of the world’s population, subsist on national average diets which are nutritionally inadequate. The reason is twofold. In the first instance, their food production is less than adequate to meet their needs. Secondly, they lack external purchasing power to buy their food requirements from the industrialized countries who have the food in surplus. The food surpluses in the industrialized countries thus are not only physical surpluses over their own requirements but are also commercial surpluses which they cannot sell.
V. M. Dandekar

Contemporary Problems in Developed Agriculture: The Family Farm and Problems of Factor Mobility


Chapter 10. Tendencies Towards Concentration and Specialization in Agriculture

The account of concentration and rationalization trends in agriculture which I propose to give in this paper will be confined to certain countries in Western Europe and to the U.S.A. I shall not deal here with the socialist countries of Eastern Europe — partly because I have wished to limit the scope of my study, and partly because the course of concentration and specialization in those countries differs, both essentially and as to influences deciding it, from that in the Western European countries and the U.S.A.

Chapter 11. The Modern Family Farm and its Problems: With Particular Reference to the United States of America

If one were to define what is meant by ‘modernization of the family farm’, consolidation and/or farm enlargement would be rather high on one’s list of necessary requirements for modernization. So, too, would technological advance, especially the land and labour-saving varieties. Land-saving technology would be required to keep total agricultural production expanding to feed growing populations, while labour-saving technology would be required to increase per capita incomes in agriculture. These two, in turn, would require a substantial amount of off-farm migration as part of the modernization process. Another requirement for modernization would be an increasing level of education, both general and vocational, in order that farmers may handle the larger farms and the more advanced technologies which come with modernization. Still another requirement would be the existence of an institutional environment which would permit a modernized family farm to finance itself and prosper.
Glenn L. Johnson

Chapter 12. The Modern Family Farm and its Problems: With Particular Reference to the Federal German Republic

The history of Europe shows that family farms have been the predominant form of rural life of European nations. Even in the era of industrialization they have proven not only their great stability but also their adaptability to technical and economic developments, and to this day form the nucleus of European agriculture.
H. Priebe

Chapter 13. The Mobility of Rural Manpower

A net transfer of labour from farm to non-farm employment has been occurring for many decades. There have been large variations in the flow over time and among countries, but the direction has been persistent. The exodus during the last decade, however, probably exceeds that of any other previous decade.
C. E. Bishop

Chapter 14. Life and Income of Czechoslovak Co-Operatives

Opening the doors to the employment of workers (even nonqualified) in industry has removed not only all the manpower reserves from Czechoslavak agriculture, but has also led to the departure of people who would have been valuable and even necessary on the farms. In the period 1950–63, 850 thousand persons left Czechoslavak agriculture, i.e. 40 per cent of the initial number, and the rate of loss shows a rising trend.
Josef Flek

Contemporary Problems in Developed Agriculture: The Problems of Vertical Integration, Innovation and Domination


Chapter 15. Vertical Integration and Development of Farms: The Perfecting and Diffusion of Innovations in Integrated Systems

This paper proposes to examine certain effects of the vertical integration processes on the pace and methods of development of agricultural plants and, especially, the problem of the perfecting and diffusion of innovations in integrated systems. This is a field of research almost totally unexplored, however strange that may seem, and this paper contains many more working hypotheses or question marks than actual results.
Joseph Le Bihan

Chapter 16. Innovation in Stock Farming: Information Flow from the Agricultural and Animal Food Industries

Innovation is exerting greater and greater pressure on the various sectors of the economy. With the developments of science and the rising standards of living, our societies are becoming both more productive and more exacting. They are constantly calling in question conditions of work and patterns of consumption. This means that our entrepreneurs must conform more and more closely to the Schumpeterian notion of an entrepreneur. The innovations of the present day are both technical and commercial; they concern the distribution of goods as much as their production. Moreover, they affect agriculture as well as industry. But because of the conditions peculiar to the agricultural sector, the new ideas have reached it at a later date, in original forms and with different repercussions on people’s lives and work.
Jean Valarché

Chapter 17. The Problems of Vertical Integration in Agriculture: The Hungarian Case

Vertical integration in agriculture involves the organization and co-ordination of the successive stages of agricultural and foodstuffs production. As it is a stage in the level of industrial development of productive forces, its principles are valid for agricultural sectors which have reached an industrial stage of production in countries where this evolution has taken place. Its effect on production relationships is to provide and develop those of a capitalist type in a capitalist economy and those of a socialist type in a socialist economy.
László Komló

Chapter 18. Joint Decision-Making Processes in Present-Day Agriculture

The architects of the Conference have assigned to me a broad subject, but with constraints of time and space. Within such limitations, I sketch a limited number of market-structure situations in which joint decision-making processes prevail in present-day agriculture. They apply to the United States, although they are not limited to it; broadly similar joint decision-making processes operate in other countries. A caveat is that my experience and views are flavoured, likely biased, by my observation and study of developments in my own country.
Sidney Hoos

Contemporary Problems in Developed Agriculture: Case Studies in Agricultural Policy


Chapter 19. The Income Objective in Agricultural Policies

Our starting-point for this study is a country whose national policy aims at the well-being of all its citizens, and simultaneously at raising their standard of living as rapidly as possible. We shall also assume that the more important decisions made in this country are arrived at by majority vote on democratic lines, but that at the same time great attention is paid to the opinions of minorities: to this end, there is readiness to make compromises. We assume moreover that a policy of great restraint is observed in the exercise of economic pressure, not to mention compulsion, on the common citizens when their interests as individuals conflict with the interests of the general public. This ideal democratic state must have an agricultural policy. Just what its agricultural policy shall be, is a question that is perhaps not easy to decide.

Chapter 20. Swedish Experience in Agricultural Policy

When I was invited to write this paper I was told that the case of Swedish agricultural policy seemed to be one of the few interesting ones. By the expression ‘interesting’ may, as I see it, be understood a radical and/or successful policy, which can serve as a model for other countries. If we look merely on the strictly agricultural part of Swedish economic and social policy, I am afraid I have to be disappointing.
Odd Gulbrandsen

Chapter 21. Purchasing Contracts and Price Policy as Means of Planning Agricultural Production

Since the end of the Second world war, the contract system has been gaining ground steadily in the agriculture of most of the economically developed countries. There are several reasons for this.
The development of food processing and transformation industries leads to concentration both in the demand for agricultural products and in their supply, for these industries are dependent upon regular supplies of farm produce of a given quality.
Production of agricultural inputs is an expanding industry. Anxious to widen their markets, firms in the industry often take a hand themselves in organizing both agricultural pro-duction and marketing and so initiate a process of vertical integration in agriculture. The contract system is one of the basic forms of such integration.
A revolution has taken place in food distribution. Chains of supermarkets and the multiple outlets of wholesale dealers are handling more and more of the food supplies to the public, and these chains need regular supplies of standardized products just as much as the food industries do.
In agriculture, as in industry, people are becoming more and more aware of the need to plan production.
M. Pohorille

Chapter 22. Agricultural Planning in U.S.S.R.

The possibility of planning agricultural production by the state is a considerable advantage of a socialist economy. As is well known, there is practically no country that today pursues a laissez-faire policy in the area of agriculture. In almost all countries agricultural production is controlled by the state to some extent, as examples, we can cite the system of the Commodity Credit Corporation in the U.S.A., the policy of a dirigement of farming in France, the extensive system of subsidizing agricultural work in England, etc.
K. P. Obolenski

Chapter 23. The U.S. South as an Under-Developed Region

Economic development (whether national or regional) is a longrun historical process which cannot appropriately be examined without reference to the past. For this reason, the present paper takes 1930 as the historical turningpoint between the U.S. South’s long period of economic lag and the more recent period in which it has closed much of the gap in material well-being between itself and the rest of the United States. We shall therefore begin by examining the relative status of the Southern economy in 1930, followed by a discussion of the historical, social and political factors which help to account for the South’s lag behind the national economy. We shall then turn to a statistical documentation of the substantial spurt in the South’s rate of economic development during 1930–60, concluding with a discussion of the job that remains if the South is finally to achieve full economic parity with the other regions of the United States.
William H. Nicholls

Conceptual Problems in the Analysis of Agricultural Development


Chapter 24. Process in Farming Versus Process in Manufacturing: A Problem of Balanced Development

It is Wicksteed who first pointed out the ‘fascinating’ analogy between the laws of satisfaction and those of production.1 A trivial idea by now, the formal identity between consumption and production theory comes from the fact that in both cases the main problem is one of maximizing an ordinary function of several independent variables subject to a budget constraint.
Nicholas Georgescu-Roegen

Chapter 25. Problems of the Re-Structuring of Agriculture in the Light of the Polish Experience

The title of this paper could give rise to a misunderstanding about the author’s opinions. It is therefore worth starting by indicating his disagreement with simplified conceptions of agricultural re-structuring when these conceptions centre on one of the forms of land concentration. This is not to deny the importance of the problem of land ownership within the context of the factors determining the socio-economic and technical-economic structures within this sector. But in the developed countries, it is a long time since agriculture was dominated by reciprocal factor substitution of land and labour both at the level of production forces and at the level of the relations of production. It is the substitution of either or both by a third factor, namely, by man-made and accumulated means of production, which becomes decisive in determining agricultural structures. This is manifested in several ways: in the increasing divergence between the price of land and the theoretical product of the capitalization of the farming rent that might be derived from the same land as a holding; in the diminishing importance of rent in the total cost of production; and so on. The old race for new land, even land less favourable to cultivation, is being replaced by a gradual trend of abandoning regions which were, until recently, agricultural.
J. Tepicht

Chapter 26. Turning-Points in Economic Development and Agricultural Policy

The purpose of this paper is threefold: To show that economic development does not follow a single line of an elegant ‘take off’, but that there are several turning-points in the main trends of development, many pitfalls of structural changes, and those of policy changes to match.
Rudolf Bićanić

Chapter 27. Equity and Productivity Issues in Modern Agrarian Reform Legislation

Understanding of the economic implications of land tenure systems rests on a dual foundation. First, there is a set of historical generalizations about the consequences of alternative tenure arrangements for economic growth. There is also a set of logical deductions about the effect of alternative tenure arrangements on resource allocation and output levels derived from the neo-classical theory of the firm. Among Western economists, economic history and economic logic have combined to produce a remarkable unity in doctrine to the effect that an agricultural sector organized on an owner-operator pattern (a) achieves a more efficient allocation of resources and (b) makes a greater contribution to national economic growth than under alternative systems.
Vernon W. Ruttan

Chapter 28. The New Synthesis of Rural and Urban Society in the United States

Changes in United States agriculture during the past quarter of a century have been so thoroughly documented that at first glance it seems difficult to illuminate them further. However, I believe I have found a new way of looking at these changes which has far-reaching implications.
Karl A. Fox

Chapter 29. The Terms of Trade of Agriculture in Context of Economic Growth

In a competitive economy, where the value marginal productivities of the factors of production are equal in all sectors, the terms of trade of one sector are meaningfully measured by the rent realized by factors specific to this sector. If there are no specific factors, there is no problem of terms of trade.
Yair Mundlak


Weitere Informationen