2d) Agricultural development is one aspect of rural development

The functions of agriculture in the development process, as outlined in the last chapter, indicate that agricultral development cannot take place without a simultaneous development of other sectors. This holds true fur industry and services, as well as for non-agricultural parts of the rural sector. Even is it starts there, rural development goes far beyond agricultural development and,, in accordance with the system concept, includes all aspects. For instance, in many overpopulated countries, a more favourable land-man ratio, which is necessary for increasing agricultural productivity, cannot be attained by the physical extension of the farms. Here, the possibilities lie in the application of improved technology and better management systems. This, again, is a function of development in non-agricultural fields of the rural area, i.e. training, research, and marketing facilities. Othe rexamples could be quoted. While the important fields involved in and to be incorporated into the rural development policy will be dealt with the subsequent chapter, two will be mentioned here already because of their importance:

  • Agricultural development depends on a suitable framework of institutions which have to be created or adapted to the requirements. These include administration, communication, market, credit and extension services, at village, regional and national level.
  • Land tenure is one of the utmost importance for the prospects of agricultural development because it restricts access to land and to other resources, and leads to underutilization. It determines the power^structure and the incentive to produce, save, and invest, and restricts mobility. We all are aware of the difficulties of changing the existing land tenure system, which can be-successfully accomplished only if it is accompanied by a reform of land management and by the supply of supporting services like credit, marketing, and extension. It should also be understood that land reform is a permanent process. There is no ideal land tenure system, but only one adapted
    to the social, econmic, and political situation, and, as this is changing, land tenure has to be adjusted constantly.