Introduction
Agriculture is critical to emerging nations’ economic prosperity, and its significance in economic development is vital since agriculture employs the majority of the emerging world’s population. Agriculture’s role in economic growth has been divided into several categories, including product, factor contribution, marketing, foreign currency, agricultural and poverty alleviation, as well as job creation (Fried et al. 5). Thus, this essay will discuss the importance of agriculture and how agriculture may influence a nation’s economic progress.
Product Contribution
The emerging markets rely on their farming to feed their populations. There are, nonetheless, a few exclusions: some nations, such as Malaysia and South Saudi Arabia, have enormous natural resource outputs that allow them to generate sufficient foreign cash to buy their people’s food (Bencze 140). However, most developing nations lack the requisite foreign currency profits to import food grains to nourish their population, forcing them to rely on their agriculture to grow enough food to fulfill consumers’ purchasing demands.
Farmers in these advanced economies must produce food in excess of their sustenance requirements in order to feed their urban populations. If the industrial and service sectors expand, farmers’ export earnings must cover the workers’ nutritional demands (Bencze 141). As the industrial and service segments grow, agricultural output and yield must improve so as to maintain economic development by nourishing the fast-growing workforce.
Factor Contribution
Agriculture contributes to economic development by providing two crucial variables — labor and capital — for industrial expansion. The agricultural industry in developing nations is relatively big, as it employs approximately 60% of the populace (Ccama 8). As a result, it has the potential to free up a large quantity of labor for use in the industrial and other non-farm sectors. On the other hand, agriculture may free up work for industrial expansion if its output grows. Thus, excess labor, generally known as the disguisedly jobless, must be mobilized in farming for the advent of the modern economic capital markets for jobs in growing sectors (Ccama 11). The lesser the pay of labor, the lower the cost of the manufacturing industry, resulting in enormous profits for entrepreneurs that could be invested back into future industrial growth and capital consolidation.
Source of Capital
Agriculture may also be a key source of savings or cash for emerging countries’ industrial expansion. Even in poor emerging nations, where agricultural revenue is unevenly distributed, rural individuals with high earnings can save for industrial growth. During the agricultural revolution in Britain, wealthy landowners freely put some of their resources into expanding companies (Ccama 14). Furthermore, small farmers can save their modest deposits in local banks, and these financial institutions can subsequently lend to industrialists for productive capital.
Market Contribution
Agriculture’s economic contribution refers to the need for manufactured goods. During the early phases of development, whenever the urban sector is tiny and exporting marketplaces have yet to be discovered, the farming industry of emerging nations is a primary factor driving the market or consumer for industrial goods. Farmers frequently grow cash crops such as sugar, jute, and cotton, and from their sales, they earn money that they may spend on manufacturing (Fried et al. 7). Furthermore, farmers who have a marketable excess of grain production (cereals as well as pulses) trade them in the market for currency, which becomes a driver of the economy for industrial goods.
The pace of economic expansion cannot be significant except if the marketplace or requirement for manufactured goods grows. In India, it has been discovered that anytime agricultural development is slow or declining, the industrial output stagnates owing to a downturn in the economy for goods (Fried et al. 8). Increased productivity and output lead to a rise in the domestic market for products or services, hastening the rate of economic growth.
Foreign Exchange Contribution
Agricultural practice is a source of external exchange profits in the early growth phases when the manufacturing industry has not yet developed considerably. In the early stages of economic growth, emerging nations frequently face a lack of exchange rates, referred to as a foreign currency deficit, in order to fulfill the import requirements for rapid industrialization (Fried et al. 10). By donating to foreign exchange profits, emerging countries access imported commodities required for industrial expansion that cannot be supplied locally or at a more significant investment return. Thus, agribusiness may substantially contribute to economic growth by generating the foreign exchange needed to acquire industrial raw materials and capital goods for developing companies. The absence of foreign exchange is a significant impediment to expansion.
Agriculture and Poverty Alleviation
Agricultural expansion boosts the productivity and earnings of smallholder farmers and the occupation and pay of agricultural employees. This contributes to the reduction of poverty and hidden labor. Furthermore, increased agricultural output lowers consumer prices and keeps inflation in check, all of which help poverty reduction (Fried et al. 10). It has been discovered that agricultural expansion offers a high opportunity for employment if a qualified agricultural growth plan is implemented. Currently, modern agricultural technology is being demonstrated by the use of high-yielding varieties, fertilizers, insecticides, and the optimal amount of irrigation water, increasing agrarian employment (Fried et al. 11). These high-yielding technological inputs allow farmers to practice multiple planting, resulting in a significant employment perspective.
Contribution of Agriculture to Employment Generation
It has been discovered that growth in the farming sector has high employment prospects if an appropriate economic strategy is sought. The use of Improved varieties, herbicides and pesticides, synthetic chemicals, and the optimal amount of irrigated agriculture, as depicted by new technology, causes an increase in job opportunities (Fried et al. 11). High-yielding advanced technologies are factors of production that allow farmers to practice multiple cropping, which has a high productivity possibility. What is required is a rise in invested capital to widen irrigation systems and other productive resources so that growers across can take advantage of innovation. The broad use of new high-yielding technologies in the rural economy would boost agricultural output and jobs. Nonetheless, irresponsible mechanized farming should be prevented to achieve maximum opportunities for employment (Fried et al. 12). Furthermore, new policies such as leasehold reforms and land acquisition through land-owning limitations must be effectively applied to promote agricultural engagement, as local farmers use more labor, have more excellent crop production, and enhance efficiency.
Conclusion
Agriculture is a significant factor in economic development since it employs most of the emerging world’s population. It is a substantial source of savings or money for emerging nations’ rapid industrialization. Nevertheless, anytime agricultural development slows, heavy industry stagnates owing to a lack of customers for industrial goods. Thus, irresponsible mechanization of farming should be discouraged to realize the full employment potential.
Works Cited
Bencze, Tibor. “The Importance of Social Capital in Agriculture.” Review on Agriculture and Rural Development, vol 8, no. 1-2, 2019, pp. 139-145. University of Szeged, Web.
Ccama, Faustino. “Importance of Mining and Agriculture on the Peruvian Economy”. Semestre Económico, vol 7, no. 2, 2019, pp. 7-39. Universidad Nacional Del Altiplano – Faculty Of Economic Engineering, Web.
Fried, Guillaume et al. “Relative Importance of Environmental Factors and Farming Practices in Shaping Weed Communities Structure and Composition in French Vineyards”. Agriculture, Ecosystems &Amp; Environment, vol 275, 2019, pp. 1-13. Elsevier BV, Web.