Introduction to Part II

Abstract

World food and agriculture — past performance and future prospects — have important implications for and impact on interdependence between nations and economic sectors. The rate and pattern of agricultural growth affect changes in the structure of both national and international economies. Agricultural development both spurs overall development and, in turn, is stimulated by it. This is especially so in developing countries in view of agriculture’s importance as a source of income and employment. A rise in income and associated changes in the pattern of demand and technological progress lead to changes in the relative role of agriculture in the overall national economy. With income growth there is a shift in the composition of demand away from emphasis on food and agriculture towards the non-agricultural sector. At the same time technological progress in agriculture leads to increased labour productivity and releases the labour force from agriculture to the rest of the economy.