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The dependence of developing economies on agriculture condemns them to remaining poor

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Introduction

"The dependence of developing economies on agriculture condemns them to remaining poor" UNO's latest research confirm the above view when an article published the figures showing that the 24 percent of GDP worldwide is agricultural-related. The basic economic problem which determines the fact that Maximum Growth can be achieved if a country use its resources efficiently and produce maximum output in order to achieve economic growth. But in poor countries if agricultural productivity is low, most people must work on the land to produce enough food for the population. Few people are available for work in other activities. Therefore clearly resources are not being used carefully, as farmer themselves are not certain about the level of production they are working for. Their set targets might go wrong when crops are damaged by any reason. There are number of reason why agriculture doesn't bring development for all those agricultural countries who are producing million of tonnes of wheat, rice, other food commodities, minerals etc. Poor countries in Africa, Asia and Latin America are very often subject to droughts which seriously affect crop and pasture productivity. ...read more.

Middle

There is no direct transportation cost. Also tourism affects the economy as a whole in shape of hotels, motels, restaurants and other retail functions. In result government receive taxes, income is re-distributed among general public and so on which is beneficial for an economy. But its worth noting that tourism is affected by many external forces i.e. climatic conditions, political unrest and currency instability. In developing countries, tourism is a new activity therefore it needs to be organised in order to attract more tourist in particular areas. Industrialisation is the most common strategy adopted by third world countries for development. However, factors of production are limited in many LDC's, such as small domestic markets, non-availability of latest technology and competition from abroad cause the slow progress or probably NIL growth for LDCs considering their problems. Therefore in order to face population growth, high unemployment, an uneven distribution of incomes, dependence upon agriculture for income and occupation, tourism might be the ideal development tool for the Third World. Economically, country enjoys that penetration of foreign exchange in a country due to tourism and it also improves the Balance of Payment situation. ...read more.

Conclusion

There might be other reasons why might first world countries' population travel to these countries i.e. Business Trips, or visiting friends or relatives. Conclusion: Adopting tourism as a development strategy might be good idea for third world at some extent but it is not a perfect tool of development. In the field of agriculture, revolutionised strategies needs to be adopted i.e. changing the ways of cultivation, or the Green Revolution (development if high yielding varieties of seeds) which increase the productivity the of crop and it is very beneficial for small farmers in poor countries. Tourism might be a good idea if a country is not suffering from domestic political, social unrest, bad relations with other countries (Zimbabwe) and strive to develop gradually. Examples include Singapore, UAE, Saudi Arabia and Hong Kong where a country adopted industrialisation as a development strategy along with international trade and tourism or in the case of India/Pakistan/B'Desh still struggling to adopt industrialisation along with dependence on Primary Production at some extent. ?? ?? ?? ?? Development Economics Khurram Memon ...read more.

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