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Abstract
In most countries in sub-Saharan Africa at present, the majority of the
population is engaged in agriculture, with economies in the very early stages
of structural transformation - the process whereby a predominantly agrarian
economy is transformed into a diversified and productive economy dominated
by manufacturing and services. These countries are characterized by low
levels of farm productivity, limited growth of non-farm employment and high
rates of population growth.
This paper focuses on the factors involved in fostering a country’s structural
transformation. This process of transformation has many dimensions.
Among these we emphasize interactions between four factors: increased
agricultural productivity, rural industrialization, the expansion of agricultural
markets, and the demographic transition. All of these are critical to reducing
agriculture’s share in the total labor force and promoting broad-based
economic growth.
In this paper, we assess the relevance of the East Asian experience, primarily
that of Taiwan, for the task of determining priorities for agricultural and rural
development in the countries of sub-Saharan Africa, in spite of their very
different historical and cultural antecedents and physical environments.
Important lessons emerging from the East Asian experience are that the
transformation of the structure of a predominantly agrarian, semi-subsistence
economy cannot be achieved without substantial increases in agricultural
productivity. Second, the structural transformation process must take
advantage of the positive interactions between agricultural and industrial
development. These interactions depend on the expansion of the marketed
share of agricultural output, which enables farm cash incomes to rise.
Finally, we emphasize that demography matters in that increasing the growth
of non-farm employment relative to the growth of the total labor force can
accelerate structural transformation.