Full text: Study week on the econometric approach to development planning

1154 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 72¢ 
study should be noted, however. In the opinion of the team, 
major increases in output can be achieved only as a result of 
the simultaneous introduction of a variety of improvements (3). 
For example, a substantially higher yield for a crop would 
require new varieties, more fertilizer, heavier rates of seeding 
or planting, measures for controlling insects and diseases, and 
changed methods of cultivation. Any one of these changes 
may be largely ineffective or may even have a negative in- 
Aucnce in specific cases. 
That it is technologically possible to increase food output is, 
of course, only a necessary condition for a solution of the 
agricultural problems of the low income areas. Much must be 
done before the technological possibilities can be translated into 
food available for an increasing population with a rising per 
capita level of consumption. One of the major problems in 
making the projections necessary for a development plan is 
that of estimating when and to what degree the political and 
economic circumstances will result in the realization of the 
technological possibilities. 
The last of the four factors that influence the level of agri- 
cultural output is the nature of the incentives available to farm 
families. The incentive structure has two major elements — 
the terms of trade between agriculture and the rest of the eco- 
nomy and the relationship between effort and reward as affected 
by institutional factors as codified in the tenure system and the 
structure of the farm organization, such as individual proprie- 
torship. collective or cooperative farms. 
In a growing economy, starting from a low income level, 
savings in or from agriculture are an important source of invest- 
ment funds for the entire economv. The extent, and the method 
, @) Ibid. p. 18. « À few improved practices can be effective if adopted 
singly, but the full benefit from most improvements can be obtained only 
if they are adopted in combinations snitable for specific soil and climatic 
conditions. » 
“16] Johnson - pag. 14
	        
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