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In a predominantly agrarian region, development of the nonfarm economy is materially affected by the development of the agricultural sector. Agriculture supplies food, raw materials, and surplus labor for agro-industry.
This chapter uses an estimated social accounting matrix (SAM) to provide a detailed quantitative description of the North Arcot study region in 1982/83. The SAM framework provides a consistent, comprehensive, and detailed picture of the transactions in an economy.
Technological change, such as the replacement of traditional with modern crop varieties and introduction of irrigation, has been effective in increasing the yields and production of various crops— notably rice and wheat—as well as incomes of farmers in developing countries (Pinstrup-Andersen 1982
Agricultural technologies of the "green revolution" type have brought substantial direct benefits to many developing countries. Prominent among these has been increased food output, sometimes even in excess of the increasing food demands of a growing population.
In late 1985, the International Food Policy Research Institute in collaboration with the Rural Development Studies Bureau of the University of Zambia, the National Food and Nutrition Commission, and the Easter Provice Agricultural Development Project embarked on a major research project in Easter
This research is stimulated by the preliminary insight that rural households, even if they are poor and/or located in so-called subsistence-oriented regions, are dependent on a variety of farm, nonfarm, and nonagricultural income sources.
One aspect of the research undertaken in North Arcot in 1973/74 by the Cambridge project was a comparative study of the sample villages.
Successful agricultural development requires not only the development of physical infrastructure such as irrigation, electrification, and roads but also the increased provision of key services such as credit, transport, agroprocessing, marketing, and the delivery of farm inputs.
Agricultural growth is essential for fostering economic development and feeding growing populations in most developing countries. As land and water become increasingly scarce, this growth will depend more and more on yield-increasing technological changes of the green revolution" type.