SUMMARY
The article focuses on the agriculture, industrialization, and poverty. It asserts that there all these factors or variables are interconnected. The evidence suggests that poverty is widespread in those countries, which have an agricultural economy or the agriculture sector of the economy contributed more to the Gross Domestic Product of a country. It also suggests that in those countries, the industrial base is small and most the people are employed in the agricultural sector.
The study also asserts that a more significant number of people have access to a piece of land, lower the productivity. In contrast, in the industry, more the human resource is employed; the more value is added to product or services. Also, because of the increased supply of labor, the cost of production decreases, especially in labor-intensive economies, which facilities increase in export and give local products a competitive advantage in foreign or international markets.
To reduce poverty and to expedite economic growth, the focus should be on expanding the industrial base. It will accelerate the process of urbanization and because of the rural migration region will have more land for fewer numbers of individuals, which will increase the agricultural productivity. However, this process is gradual and takes years. For instance, the after the Industrial Revolution, in Europe, it took considerable time for the urbanization process to complete and the agricultural productivity increased slowly.
However, it is evident from the evidence that because of the increase in industrial base and urbanization, poverty decreases, economic growth increases and both industrial and agricultural productivity increases. Though, the methodical urbanization should be the emphasis, as we learn that asymmetric urbanization has severe ramifications for the economy. Also, the article also asserts the technological advances, such industrialization, are essential to ensure balanced growth, in which all sectors of the economy are productive.
ANALYSIS
It was long thought that for any economy, the prime concerns are sustainable economic growth and high employment. However, studies reveal that for economies, poverty is also a great concern and in some economies despite high employment level, poverty could be widespread. For instance, if an economy is entirely agrarian or predominantly agricultural, then most of the people in that economy would be employed; however, they would be living in poverty. Therefore, it is essential that unemployment also reduces poverty.
It is also true that for any economy, it is essential to industrialize. It is because industrial economy’s growth at a higher rate and industrialization facilitates urbanization. Also, the economic opportunities, which are produced by industrial sector, are more lucrative. The example is of China, which was predominantly an agrarian economy. However, because of the rapid industrialization in the 80s and 90s, it was able to live large number out of poverty, and it was able to achieve short and long-term economic objectives. We also learn that because of rapid and consistent industrialization, the expansion of manufacturing base, China became one of the largest economies in the world.
However, this industrialization has various kinds of ramifications. For instance, because of the rapid industrialization asymmetric urbanization occurs. This asymmetric urbanization puts an additional burden on urban centers, which reduces the efficiencies of these urban centers. Also, because of this rapid industrialization economic institutions may not develop as quickly as economic growth, which adversely affects economic growth in the long run. It means that the actual growth, in the long run, is less than the potential economic growth.
In a nutshell, to address poverty and long-term economy’s growth, agriculture should be burdened off. It supplies more labor to the growing industrial sector and leaves more land per person, which is imperative for balanced economic growth.
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