PutraMOOC | PRT2008M Topic 7 Agriculture and Economic (Part 1/2)

Summary

This video discusses the crucial role of agriculture in the economy, particularly in developing and least developed countries. It highlights agriculture's impact on poverty reduction, its contributions to GDP, and employment in rural areas. The video also explores the evolving challenges in food production, especially in the face of a growing global population and limited resources. Key topics include agriculture's historical importance, its declining share in high-income countries, and the need for greater efficiency in food production, particularly in Asia. The video provides insights into how agriculture shapes economies and responds to emerging global challenges.

Takeaways

• 😀 Agriculture played a vital role in reducing poverty and hunger, especially in developing and least developed countries, as it was historically the main driver for economic activities.
• 😀 A 2005 World Bank study in India found that growth in rural areas and the agricultural sector had a much greater impact on poverty reduction than growth in other sectors.
• 😀 As agriculture expands, it has a spillover effect on the development of infrastructure like roads, schools, and hospitals, which encourages people to stay in rural areas.
• 😀 Agriculture is a key component of the primary sector in the economy, contributing to the overall structure of economic sectors (primary, secondary, and tertiary).
• 😀 In Malaysia, agriculture contributes about 7% to the GDP, reflecting the broader trend of shrinking agricultural contribution to GDP in many developed economies.
• 😀 High-income countries, such as the U.S. and the UK, have seen a decline in agriculture's contribution to GDP, but this does not mean agriculture is unimportant — it reflects a shift to a larger economy.
• 😀 In middle- and lower-income countries, agriculture still plays a much larger role in the economy, both in terms of GDP contribution and employment.
• 😀 Employment in agriculture is still significant in lower-middle-income and upper-middle-income countries, especially in rural areas, where labor-intensive agriculture is prevalent.
• 😀 The global population is expected to rise from 6.8 billion in 2009 to 9.5 billion by 2050, which will increase demand for food, posing a challenge for global agricultural production.
• 😀 The share of cereal production, which is a staple food for many, is highest in Asia, where both production and population are concentrated, but efficiency in land use needs to improve to meet future demand.

Q & A

What role did agriculture play in reducing poverty and hunger in developing and least developed countries?

Agriculture was the primary driver for reducing poverty and hunger in developing and least developed countries. A study by the World Bank in 2005 found that growth in rural areas and the agricultural sector had a much greater impact on reducing poverty in these regions.

What is the 'spillover effect' in the context of agriculture?

The spillover effect refers to the indirect impacts of agricultural growth on other sectors. As agricultural production increases, it leads to the development of infrastructure like roads, communication systems, schools, and hospitals, which help rural populations thrive and continue farming.

How is agriculture categorized within the three major economic sectors?

Agriculture is categorized under the primary sector, which is one of the three major economic sectors, alongside the secondary sector (industry) and tertiary sector (services).

What is Malaysia's agricultural contribution to its GDP, and how does it compare to other sectors?

In 2012, agriculture contributed around 7% to Malaysia's GDP, which is relatively small compared to the service sector, which contributed 55%. However, this reflects a global trend where agriculture's GDP share is often small but still significant.

How has the contribution of agriculture to GDP changed in high-income countries since 1980?

In high-income countries such as the U.S., Australia, and the UK, the contribution of agriculture to GDP has significantly decreased since 1980. For example, South Korea's agricultural contribution dropped from 16% in 1980 to just 3% in 2012, reflecting industrialization and technological advancements.

What is the trend in agricultural employment across high-income and middle-income countries?

Agricultural employment has been declining in all countries, with high-income countries experiencing a slower decline due to technological advancements. In middle-income countries, however, agriculture still plays a significant role in employment, often involving labor-intensive practices.

What impact will the expanding world population have on agriculture?

The expanding world population, projected to reach 9.5 billion by 2050, will result in increased demand for food. This will place additional pressure on agricultural production to meet the needs of a larger population.

How does cereal production relate to global food supply and population distribution?

Cereal production is a key component of global food supply. The distribution of cereal production is uneven, with Asia producing the most but also having a high population. This imbalance highlights potential food supply deficiencies in some regions, despite their high production.

Why is land efficiency important for future agricultural production?

Land efficiency is crucial for future agricultural production because available land for farming is limited. Regions like North America are more efficient in cereal production, but other areas, like Southeast Asia and Africa, need to improve their efficiency to meet growing food demands.

What challenges does agriculture face in meeting future food demands?

Agriculture faces several challenges in meeting future food demands, including limited land availability, the need for increased efficiency in production, and the pressure of an expanding global population. These challenges require innovation and improvement in agricultural practices to ensure sustainable food security.