Question

Why is it important to know that in some countries of this region (consider either North Africa or Southwest Asia or both) agriculture may produce only a small amount of the GDP yet employ 40 percent or more of the people? What are some of the things such a relationship would indicate about the state of development in that country? What public policies would be appropriate in these circumstances—for example, should agriculture be deemphasized? How might this deemphasis affect food security?

Answer 1

These all are developing countries and over the 40 percent population of country is associated with the agricultural sector. The average incomes in these countries are relatively very low. Larger dependency on the agricultural sector is an indicative of developing countries. The manufacturing and service sectors are very low in these countries.

Following policies must be pursued:

• Government must increase expenditure on developments of infrastructural facilities.
• New technology must be used in agro sector so that additional labor must be migrated to the non agricultural sector.
• New policies must incentivise investment in manufacturing and service sector.

Many people are disguisedly employed in the agricultural sector ,thus when labor shifts from the agricultural sector, there will not be fall in agricultural output.