In: Economics
Discuss the importance of Agriculture to Africa’s economic development
Obviously an adequate food base is an essential prerequisite for development. Unless this need can be met there can be little hope for successful economic, social and political development. Agricultural development in most countries is a necessary precondition for economic development unless they are fortunate enough to have other resources which can be exported to finance food imports. Even in the latter case such imports would detract from the accumulation of capital necessary for industrialization and would be unwise from a developmental standpoint, unless the country did not have suitable conditions for agriculture. Comparative economic advantage may dictate the utilization of cropland for the production of non-food agricultural products such as cotton, jute or rubber, but this practice is economically sound only if the country has sufficient food cropland to meet local needs or if the export of non-food agricultural products generates sufficient earnings to offset the cost of food imports. Thus the food question is inextricably entwined with the general problems of agricultural and economic development.
The role of agriculture in African development is that this lead to the impact of alternative growth paths on overall growth and poverty reduction in six low-income . The structure of growth is important in determining not only the total growth but also the size of a country’s poverty-growth elasticity. Although some African countries have potential sources of growth outside of agriculture, growth in the industrial sectors is, at least in the short- to medium-term, unlikely to be substantial enough in many countries. Moreover, non-agricultural growth is generally less effective at reducing poverty as agricultural growth. While the large size of the agricultural sector predetermines its potential influence on aggregate growth .
Agricultural growth is more pro-poor than industrial growth, primarily because it allows for greater participation of the poor in the growth process. While the industrial sector also has linkages to the rest of the economy, these linkages are weaker and create fewer employment opportunities for poor workers. This is similarly true for agricultural exports, which typically benefit peri-urban areas and do not necessarily benefit the poor in more remote rural areas.
Africa does face many new challenges unlike those faced by Asian countries, there is little evidence to suggest that these countries can bypass a broad-based agricultural revolution to successfully launch their economic transformations.