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Abstract
While both Malthus and Ricardo viewed agriculture as impediments to economic
progress, Mill and Marshall argued that the effects of diminishing returns to land could be
offset. Mill emphasized that the progress of civilization, such as roads that reduced the cost
of bringing products to market, and policy improvements, such as abolition of the corn laws,
provided substitutes for farm inputs. Marshall argued that population growth could for a
long time, through growth of organization and knowledge, offset the effects of diminishing
returns.
Had the insights of Colin Clark dominated the policies of developing countries rather
than the implications drawn from the dual sector models and the pessimistic views of
Prebisch, agriculture's contribution to economic development would have been enhanced.
The efforts to tax agriculture to support import substitution policies reduced rather than
increased economic growth. Agriculture has important contributions to make to economic
development, but must receive even handed treatment if the possible contributions are to be
realized. A major failure of all governments has been the unwillingness to recognize that
agriculture is a declining industry and to adopt policies that would assist farm people to
adjust to the decline in demand for farm labor.