- Research Article
6
- 10.2307/1237443
The Transformation of Traditional Agriculture: A Case Study of Punjab, India
- May 01, 1971
- American Journal of Agricultural Economics
- I J Singh
HE PURPOSE of this paper is to report the results of a dynamic regional model of agricultural production response, developed and applied to traditional agriculture, which (1) is based on the already tested notions of economic rationality and price responsiveness in traditional agriculture; (2) incorporates several categories of response forces already studied in the case of developed agriculture; and (3) includes in an essential way the features of subsistence production and household-firm interdependence that are central to the study of production response in traditional agriculture. Specifically, recursive linear programming and activity analysis are used to analyze and simulate the production, consumption, and investment decisions of subsistence farmers in a given region. The result is an improved understanding of the process of agriculture in transition and an operationally tested method for projecting future development. There is growing evidence of the recent transformation of the agricultural sectors of such diverse economies as Israel, Nigeria, West Pakistan, India, the Philippines, Tanganyika, and Thailand [18]. These vast agricultural transformations offer an excellent opportunity to enhance our understanding of the process of development. The purpose of this study was to investigate some of the factors and conditions responsible for one of these transformations, not in its generality, but in great detail. While agricultural development remains at the center of development theory and policy, only recently has attention been given to the empirical investigation of its role in the LDC's. Though some investigations stress the importance of agricultural exports as a point of departure in the LDC's, the more fundamental problems are those associated with agricultural production response, since agricultural exports, whatever their role, cannot increase without an increase in agricultural production. A large part of the empirical work done so far on production response in the LDC's touches on a very important aspect: whether peasants in traditional or near-traditional agriculture respond to market opportunities. These studies have shown that agricultural production of specific commodities in specific LDC's is price responsive, especially when account is taken of adjustment lags due to uncertainty and the quasi-fixity of capital stocks. They show that the form and direction of this response is consistent with price theory, so that we can expect market incentives to play an important role in the transformation of traditional agriculture. These empirical findings clearly refute those who believe that cultural and institutional re-
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