It is in the agricultural sector that the battle for long term economic development will be won or

lost.
The statement made by a Nobel Laureate in Economics, Professor Gunner Myrdal is still much
applicable to developing countries where agriculture and rural development has become an
essential ingredient of national development. Approximately, half of the world population resides in
the rural areas. Majority of the population in rural areas depend on Agriculture. Therefore,
importance of agricultural and rural development cannot be over-emphasized. Poorest rural areas
need to be develop first otherwise development in third world nations cannot be achieved.
It has come to the notice that the largest increase of per capita food production is in China while for
Africa there has been a significant decline in agricultural productivity in the same period. This in turn,
results in increased economic development in China and worsening of economic situation in Africa.
Economic life in rural areas faces problems of poverty, mounting inequality, increasing
unemployment and high population growth. All these are the consequences of neglection of
agricultural development and preference given to urban industrial economy. Advancement in
agriculture encourages progress both in rural and urban regions.
In the current scenario, share of agriculture in the overall national income has shown some steady
decline. This is because of progress in secondary and tertiary sectors. Also worthy of emphasis is that
agriculture supply raw materials to run top industries like cotton to textiles and sugar to sugarcane
industries. Apart from this, agriculture is a market for industrial products. It also accounts for
international trade in developing countries, thus sustaining a balance of payments and aid in
becoming the country self-reliant. Improvement in internal trade is also a part of agricultural
production which helps various sectors and government in many different ways. For example,

Government earns major part of their revenue in terms of land revenue, agriculture income
tax, etc.
Revenues earned by transport industry by transportation of agricultural goods.
Government also earns revenues from export duties on agricultural products.

In order to win battle for long term economic development, Government must undertake certain
policies aiming at encouraging technologies and innovation in farms. These policies should also
target the utilization of hybrid seeds, fertilizers and irrigation to bring some land in agriculture use,
realization of land reforms and breaking the cycle of unequal distribution of income in rural areas.
It is evident from the above mentioned facts and rational discussion that boosting agriculture
sectors productivity stimulates economic development in various other sectors. Hence, Gunnar
Myrdals assertion could be considered a truism.