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Rural Institutions, Agricultural Development, and Pro-Poor Economic Growth

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  • James Roumasset

    () (University of Hawaii Manoa, USA)

Abstract

According to conventional wisdom, the ideal form of pro-poor economic development is through investment in agriculturally-led growth. In the early stages of growth, increased production decreases food prices and shifts out the demand for labor. Inasmuch as poor households disproportionately consume food and earn a relatively large share of their income from labor, both mechanisms benefit the poor. Agricultural economists typically recommend a panoply of government interventions to go along with the investments in new technology and infrastructure, including price-supports and stabilization schemes, credit and input subsidies, and crop insurance. The interventionist policy recommendations, however, are based on a variety of misconceptions and misinterpretations about farmer behavior and rural institutions.

Suggested Citation

  • James Roumasset, 2004. "Rural Institutions, Agricultural Development, and Pro-Poor Economic Growth," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 61-82, June.
  • Handle: RePEc:sag:seajad:v:1:y:2004:i:1:p:61-82
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    References listed on IDEAS

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    Cited by:

    1. Roumasset, James, 2008. "A new institutional approach to pro-poor agricultural development: Lessons from Asia," Journal of Asian Economics, Elsevier, vol. 19(5-6), pages 378-388.
    2. Llanto, Gilberto M. & Geron, Ma. Piedad S. & Badiola, Jocelyn Alma R., 2016. "Comprehensive Study on Credit Programs to Smallholders," Discussion Papers DP 2016-48, Philippine Institute for Development Studies.
    3. Herath, Deepananda P.B. & Weersink, Alfons, 2006. "Structural Changes in the Sri Lankan Tea Industry: Family Farms vs. Plantations," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25406, International Association of Agricultural Economists.
    4. Wanjala, Bernadette, 2016. "Can the big push approach end rural poverty in Africa? : Insights from Sauri millennium village in Kenya," Other publications TiSEM 5a686b22-6749-4e9e-8bf4-4, Tilburg University, School of Economics and Management.
    5. James Roumasset, 2006. "The Economics of Agricultural Development: What Have We Learned? Processes," Working Papers 200604, University of Hawaii at Manoa, Department of Economics.
    6. Majah-Leah Ravago & James Roumasset & Kimberly Burnett, 2008. "Resource management for Sustainable Development of Island Economies," Working Papers 200804, University of Hawaii at Manoa, Department of Economics.
    7. Watanabe, Michio & Jinji, Naoto & Kurihara, Mitsuyo, 2009. "Is the development of the agro-processing industry pro-poor?: The case of Thailand," Journal of Asian Economics, Elsevier, vol. 20(4), pages 443-455, September.
    8. James Roumasset, 2007. "Population and Agricultural Development," Working Papers 200702, University of Hawaii at Manoa, Department of Economics.

    More about this item

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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