CHAPTER 5:

AGRICULTURE
AND
RURAL
DEVELOPMENT
LEARNING OBJECTIVES
01 examine the effects of modernization and industrialization of agriculture on economic growth and
development;
02 elaborate export promotion and its significance to international trading

03 list infrastructure development in agriculture;

explain the targets of the world for sustainable agriculture to end hunger, achieve food security, and
04
improve nutrition;
discover the ocean, seas, and marine resources as valuable inputs to rural
05 development;
06 discuss ecotourism and its relationship and implications for rural development

07 recommend possible steps in improving agricultural processes for economic

development; and
understand agriculture and rural development at work in the eyes of a
08
nongovernment organization professional.
RURAL DEVELOPMENT
• development of areas outside the urbanized economic system

• the central development of rural areas is exploitation of natural

resources such as AGRICULTURE, FORESTRY, AND FISHERIES

AGRICULTURE
• is one economic activity that does not obey the laws of demand and
supply. ( John Kenneth Galbraith, 1908)

• in economic growth and development it means income is higher and food is

cheaper and easier to obtain
AGRICULTURE AND RURAL
DEVELOPMENT
The center of the development of rural areas is the exploitation
of natural resources such as agriculture and, of course, forestry
and fisheries.

In the Philippines, the agriculture, forestry, and fisheries (AFF)

sector is crucial in contributing to the employment of almost
one-third of the country's workforce in addition to providing
raw materials to sectors like manufacturing and services.

Thus, it cannot be denied that developed agriculture and

rural areas add to productivity and economic development.
 MODERNIZATION AND
INDUSTRIALIZATION OF
AGRICULTURE
The following are the effects of modernization and industrialization of
AGRICULTURE in ECONOMIC GROWTH and DEVELOPMENT:

• Agriculture in economic growth and development means the income is higher and
the food is cheaper and easier to obtain.

• In efficiency is sustainable food production in one’s country relative to the cost of its production
EXAMPLE: labor costs, raw materials used, supplies, and overhead costs to produce agricultural
products.
 MODERNIZATION AND
INDUSTRIALIZATION OF
AGRICULTURE
The following are the effects of modernization and industrialization of
AGRICULTURE in ECONOMIC GROWTH and DEVELOPMENT:

• In specialization the production must optimize the cost and realize the maximum profit. Also, specialization paved
way for genetically improved species of plants and animals to produce more and supply increasing need for food
and raw materials.
EXAMPLE: With farm enterprises specialize in hearing production/s focusing their abilities on a narrower range
of tasks

• In mechanization it allows tremendous production of food and raw materials compared to human labor.
• Mechanization also allows repetitive tasks that may be performed by machines undeniable cut the time by
more than 80% and further eliminate wastage to its minimum.
 MODERNIZATION AND
INDUSTRIALIZATION OF AGRICULTURE
The following are the effects of modernization and industrialization of
AGRICULTURE in ECONOMIC GROWTH and DEVELOPMENT:

• Pharmaceuticals allows an increasing reliance of farms on synthetic and mineral fertilizers as well
pesticides to boost production and to eliminate the cause of possible diseases and pests addition.
EXAMPLE: antibiotics and other chemicals

• Most government policies in Asia encourage the consolidation of farms into one large farming facility to enjoy the
economies of scale as well as speed up the processes involved the production of agricultural products.
• Everything that we enjoy today as brought by industrialization is always preceded by agricultural revolution. The
need to have cheap and readily available food is the most influential factor to advance technology and processes
that serve as a catalyst to boost economic activities and a better quality of life.
 EXPORT PROMOTION
• exportation of agriculture, forestry, and fishery (AFF )products is a conjoined effort of different
agencies of the government relevant to production, marketing, improving, and transporting raw
materials and processed goods to other countries.

• According to the website of the DA, the Philippines only has two agricultural products earning $1
billion per year, and mostly in oil form-these are bananas and coconuts

• The main goals in the exportation of AFF products are in the quality and quantity generating high quality
goods in large amounts that would suffice the need of the international trading partners.

• The price of a good that is exported really shows how borders take so much factorization from the
source to the receiving country in terms of price.

EXAMPLE: The USA does not have warm weather all year round; hence during winter, the tomatoes that are
available in the market are imported from other warm countries. The bigger, more even, juicier, and easier to
pack tomatoes are priced with a factor of at least three times than where the source is.
 INFRASTRUCTURE
DEVELOPMENT
• Infrastructure is beneficial to agriculture and rural development as it serves as the
backbone of the AFF industry and stabilizes the movement of products within and outside
the rural areas.

• One of the major concerns of farmers is how to transport goods and some services from
their area to be sold to markets.

• the program farm-to-market- roads, bringing the farmers' produce in the most efficient way,
and attempting to reduce middlemen to ensure cost, is minimized, and revenue is optimized

• Countries that consist of islands need to consider the roll-on/roll-off or RORO ships
designed to carry heavy loads from island to island. These ships allow the produce to be
safely carried to the consumers in a timely manner.
FIGURE 5.2. ADVANCEMENT OF AGRICULTURE
IN ECONOMIC DEVELOPMENT

SURPLUS

DOMESTIC
HIGHER GDP PER
PRODUCTION
CAPITA

SAVINGS AND
INVESTMENT
 GENETICALLY MODIFIED
ORGANISM ( GMO)
• Genetically modified organisms (GMOs) are organisms in which the genetic materials is altered
using modern biotechnology, typically a recombination of deoxyribonucleic a to create new genes.

• In farm easier to integrate micronutrients into GMOs, may be designed as insect, fungus, and
virus resistant, and does not need pesticide, hence, helping the environment.

• Many scientists claim that there is no serious negative Impact on health in its consumption and that it
does not destroy the environment.
• The top Genetically modified organisms (GMO) in the Philippines are eggplant, corn, and
golden rice

• These types of crops are greatly opposed by mostly western countries out of political and
unknown fears
 GREEN REVOLUTION
• The term "green revolution" is attached to a Nobel Peace Prize winner, Norman Borlaug, in his attempt to improve crop
yield in South America and later brought to Asia through Pakistan and India.

• it is the combination of more modern mechanized vehicles, better crops and hybrids, larger farmlands, and the
application of large-scale business management skills to growing food.

• Micronutrients are another product of green revolution. It is the idea of infusing more nutrients into the produced crops.
This is the solution to the ever-growing problem of malnutrition that greatly causes more deaths and productivity,
hence, market inefficiency. The identified nutrients that were earlier given focus on are iodine, vitamin A and iron,
folate which is also known as B9, and zinc.
 GREEN REVOLUTION
• In the Copenhagen Consensus, priority in improving life is given to developing countries, which identifies that
adding micronutrients in food largely improves the health of the people. However, it was noted that there was a lack
of substantial and coordinated effort by the government and the farmers, hence agreed to have more education and
awareness on the matter.

• The Philippines determined the high value crops and created a roadmap to develop these industries. They are the
abaca, banana, cacao, coffee, mango, and rubber industries, having a clear strategic plan for the years 2018 to 2022.

• Buyers in urban and rural areas and sellers (usually in the rural areas) may use the platform that is launched by the
Philippine Department of Agriculture (RP-DA) to assist the agriculture, forestry, and fisheries sector offer and sell
their products, initially to major urban areas nationwide. Payment may be made via cash on delivery (COD) or
bank transfer and now negotiating for a more online transaction such as credit card payments and delivery service
providers.
 SUSTAINABLE AGRICULTURE
• The United Nations Department of Economic and Social Affairs (UN-DESA) released the 17 Sustainable Development Goals (SDG)
adopted by all member countries of the UN, one of them, SDG 2, "end hunger, achieve food security, improve nutrition, and promote
sustainable agriculture." Before the COVID-19 pandemic of 2020, the world was already suffering from food insecurity, classified as
moderate to severe from 23.2% of the population to 26.4% from 2014 to 2018.

• The pandemic adversely affected food producers, comprising 40% to 85% of all food producers in developing regions. Apart from this, risks
such as climate shocks, locust crises, and conflicts greatly affect agriculture. Hence, the SDG 2 aims to solve this global problem. The UN
targets the following (indicators):
• By 2030, end hunger and ensure access by all people, in particular, the poor and people in vulnerable
situations, including infants, to safe, nutritious, and sufficient food all year round

• By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on
stunting and wasting in children under 5 years of age, and address the nutritional needs of adolescent girls,
pregnant and lactating women, and older persons
SUSTAINABLE AGRICULTURE
• By 2030, double the agricultural productivity and income of small-scale food producers, in particular, women,
indigenous peoples, family farmers, pastoralists, and fishers, through secure and equal access to land, other productive
resources and inputs, knowledge, financial services, markets and opportunities for value addition,

• and non-farm employment By 2030, ensure sustainable food production systems and implement resilient agricultural
practices that increase productivity and production, help maintain ecosystems, strengthen capacity for adaptation to
climate change, extreme weather, drought, flooding and other disasters, and progressively improve land and soil quality

• By 2030, maintain the genetic diversity of seeds, cultivated plants, and farmed and domesticated animals and their
related wild species, through soundly managed and diversified seed and plant banks at the national, regional,
international levels, and promote access to fair and equitable sharing of bee arising from the utilization of genetic
resources and associated traditions knowledge, as internationally agreed
 OCEANS, SEAS, AND
MARINE RESOURCES
• The ocean, seas, and marine resources are considered vital agricultural aspects that are given
much attention, especiallly in source of that have huge coastal a that are Belagic nature.

• They serve as a main source of food security and other forms and medical derivatives
and even source of energy.
• However, the marine ecosystem is continually threatened by industrialization and the
exploitation of its resources, not to mention the effects of global warming, pollution by toxic
waste thrown into the water and negligence to protect them.

• In effect, a 100-150% rise in ocean acidity is estimated by 2100, which may adversely affect
half of the global marine life. The pandemic of 2020 may have a positive effect on our seas
and oceans as humans were forced to stay at home and industries were shut down or required
to slow down with their operations. This allowed the restoration of the ecosystem.
 OCEANS, SEAS, AND
MARINE RESOURCES
• Another UN-DESA SDG is the conservation and sustainable use of the oceans, seas, and marine resources for
sustainable development. SDG 14 targets the following:
• By 2025, significantly reduce marine pollution of all kinds, from land-based activities in particular, including marine debris and nutrient pollution
• By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts by strengthening their resilience and
taking action for their restoration in order to achieve healthy and productive oceans
• Minimize and address the impacts of ocean acidification through enhanced scientific cooperation at all levels
• By 2020, effectively regulate harvesting and end overfishing, illegal unreported and unregulated fishing, and destructive fishing practices and
implement science-based management plans in order to restore fish stocks in the shortest time feasible, at least to levels that can produce maximum
sustainable yield as determined by their biological characteristics
• By 2020, conserve at least 10% of coastal and marine areas, consistent with national and international law and based on the best available scientific
information
• By 2020, prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal,
unreported, and unregulated fishing, and refrain from introducing new such subsidies, recognizing that appropriate and effective special and
differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies
negotiation
• By 2030, increase economic benefits to small island developing states and least developed countries from the sustainable use of marine resources
through sustainable management of fisheries, aquaculture, and tourism
 ECOTOURISM
• Tourism is often described as the world's largest industry, while a small component of the overall industry,
ecotourism, is believed to be one of the fastest-growing sub-sectors.
• There are multiple definitions of ecotourism, having these characteristics: (1) ecotourism occurs "in nature"; (2)
considered to be "low impact," with minimal disturbance to the environment; (3) portion of profit should be in
conservation efforts; (4) there is education to both tourists and local people about nature and its value; and lastly (5)
ecotourism development should be undertaken, ideally with local participation in planning and management

• One way of not exploiting the natural resources is catering to tourists to experience the natural habitat of our food supply
in a non-detrimental manner. In this way, we may conserve the natural design of the land and seas by just appreciating the
beauty in the surroundings without the complications of cultivation, deforestation, extreme farming, and water
acidification.

• Sustainability can be defined in a plethora of ways, and it is in economics and the wider social sciences. These
can include monetary values, value in terms of wider sets of attributes as well as a temporal component."
 ECOTOURISM
• Ecotourism is centering on environmental sustainability by preserving the resources and allowing them to recuperate
and produce more for future generations, although we can say that this has a small impact on the food production from
agriculture; still, it is beneficial to the locality by providing revenue from tourists and promotion of the cultural
heritage of the area and empowering the identity of the people, hence, economic development.

• There must be a balance between the environment and the socioeconomic impact of ecotourism in order to realize its
value to economic development.

• The idea of minimized exploiting areas of land and seas and diverting them to a more sustainable purpose like that of
tourism may be a good indication that the ecosystem is somehow protected, biodiversity is given an opportunity to
produce more, and the hazard of over-exploitation is obviously prevented.

• Almost all the provinces in the Philippines offer ecotourism to boost revenue in ther rural areas. It is true that the
country is an archipelago, and going to these places wil have to need motorized vehicles like airplanes and ships that
utilize carbon-based source of energy and may counteract the positive effect of ecotourism.
 ADVANTAGES & DISADVANTAGES OF
TOURISM
BENEFI
• TSof the ecosystem
Conservation
• Allowing environmental recuperation
• Environmental awareness
• Promotion of culture and indigenous
peoples
• Financial and economic benefits
COS
• Disturbance toT
wild species of flora
and fauna
• May lead t overproduction of species
• May cause pollutants by tourist
• Budget of more significant purpose
may be diverted to ecotourism
• Negative externalities
CHAPTER 6:
INDUSTRIALIZATI
ON
 LEARNING OBJECTIVES
1. discuss industrialization and its contribution to economic growth and development;
2. appreciate the contributions of the first industrial revolution as a jumpstart to the current state of the world
economy;
3. compare the influences of the first and second industrial revolution and the significant development of
entrepreneurship, financial systems, and international trade;
4. discuss the innovations in the third industrial revolution and the application of total quality management to
economic development;
5. elaborate the contributions of the fourth industrial revolution and all its benefits and costs for today's
economic growth and development.
6. Identify the various modes of industrialization and the cost of industrialization.
 INDUSTRIALIZATION
• Industrialization is one of the key factors of economic growth and development, not to mention the proper use of
natural resources, utilization of real or physical assets, and employment of labor or the population.

• In the 18th and 19th centuries, Europe and the "Great Depression" in the United States of America resulted in
mass production minimizing the use of resources (inputs) like materials and labor.

• In addition, there was a widespread transformation of agricultural lands to areas that involved construction and
manufacturing, thereby increasing the financial capability of the country.

• We can synonymously compare industrialization to technology and financial dominance of an

economy.
FOUR INDUSTRIAL REVOLUTIONS
THE FIRST INDUSTRIAL REVOLUTION
• The first industrial revolution tooplace from the 1700s to the mid-1800s.

• In the study of Crafts2 in 2010, the ever-increasing demand of people for more goods led the way to
invent many things that can be used in the production of more products.

• In the mid-1700s when Britain colonized India, there had been a massive transfer of materials and
labor and inventions of machines that can be used to create products from textiles, like the spinning
jenny, the first weaving machine.

• Agriculturists were very influential in their innovations in term of producing new crops and
breeding animals to yield more than what was normal.
FOUR INDUSTRIAL REVOLUTIONS
THE FIRST INDUSTRIAL REVOLUTION
• The demand to transport the goods and labor led the way for railroad, steam engine trains, and
many machine tools, Iron and coal were the primary energy resources and led the way to the
development of steam engines to be used for more operations in factories.

• The scarcity of coal during this time, as it comes from wood, signaled the use of fireproof materials made of
iron and steel. There was a requirement to advance the knowledge and skill to extract and make use of this
material in the production processes.

CONTRIBUTIONS
• Robert Bakewell³ contributed a lot to the science of animal husbandry, devices like the seed drill of
Jethro Tull⁴, and, of course, the cotton gin of Eli Whitney.

• James Watt contributed to the enhancement of steam engines by introducing separate condenser
and double-acting piston motion.
FOUR INDUSTRIAL REVOLUTIONS
THE SECOND INDUSTRIAL REVOLUTION
• The second industrial revolution took place from the mid-1800s to the mid-1900s.

• Europe and the USA took the lead in the second industrial revolution. There was an immense cultivation of
knowledge in science and applied technology that solved a lot of problems during this time.

• The USA was traveled in much ease with the railroad track from east to west coasts. Stream, electricity, and
engine-powered boats, cars, and airplanes made transportation of goods and services faster and more reliable.

• In 1908, Ford was able to eliminate the skilled craftsmen for steel and iron with the “Assembler” and the perfect
part interchangeability was achieved by Cadillac in 1906.

• Statistical process control (SPC) as a tool was used to identify variability in processes, introduced by Shewhart in
1924.
FOUR INDUSTRIAL REVOLUTIONS
THE SECOND INDUSTRIAL REVOLUTION
• Other characteristics of this period are;
• the notions of entrepreneurship
• international trade, and
• the creation of a market unique for trading shares of stocks

• The progress that was experienced by industrialization paved the way for the rise of the demand for more resources
that are not afforded by entrepreneurs, hence, the creation of the stock market enabling to pool financial assets
together of businessmen and entrepreneurs to be able to manufacture goods and trade to other countries.
FOUR INDUSTRIAL REVOLUTION
THE THIRD INDUSTRIAL REVOLUTION
• The third industrial revolution took place from the mid-1900s to the year 1999.
• At the beginning of this period, scientific management was continued to be developed, and this was after the Second
World war that ended in 1945. At the beginning of this period, scientific management was continued to be
developed, and this was after the Second World war that ended in 1945.

• In 1982, Deming introduced his philosophy on the "Fourteen Points" of quality management and was adopted by many American
business organizations. And in 1987, Motorola introduced a better total quality management tool called the Six Sigma.
FOUR INDUSTRIAL REVOLUTION
THE THIRD INDUSTRIAL REVOLUTION
• Leaders in this era like the U.S., Japan, and Germany can be characterized by having sophisticated computer
technology, high speed air travel capability, and access to satellite communications, and made their way to
internationalize their manufacturing and servicing operations.

• However, this also led to the transfer of multinational companies (MNCs) to Asia because of cheaper materials and
labor. This positively affected the GDP of the key players in Asia like China, India, Hong Kong, Taiwan, Singapore,
and South Korea.
FOUR INDUSTRIAL REVOLUTION
THE THIRD INDUSTRIAL REVOLUTION
• Toward the end of the third industrial revolution, two countries were predominantly leading, they were China and India. India
changed their policies, paving the way to ease up regulations for the production of goods and services, thereby allowing small
businesses to thrive and export software programs and other high-technology products and even services like being the hub of
western call centers due to the English speaking and technological skills of its educated population.

• China began dominating the globalized economy by selling garments, toys, technological products, household things, and other
consumer products at the cheapest price imaginable, but we will see more of them in the fourth industrial revolution that is
happening today.
FOUR INDUSTRIAL REVOLUTION
THE THIRD INDUSTRIAL REVOLUTION
• Leaders in this era like the U.S., Japan, and Germany can be characterized by having sophisticated computer
technology, high speed air travel capability, and access to satellite communications, and made their way to
internationalize their manufacturing and servicing operations.

• However, this also led to the transfer of multinational companies (MNCs) to Asia because of cheaper materials and
labor. This positively affected the GDP of the key players in Asia like China, India, Hong Kong, Taiwan, Singapore,
and South Korea.
• Toward the end of the third industrial revolution, two countries were predominantly leading, they were China and India. India
changed their policies, paving the way to ease up regulations for the production of goods and services, thereby allowing small
businesses to thrive and export software programs and other high-technology products and even services like being the hub of
western call centers due to the English speaking and technological skills of its educated population.
FOUR INDUSTRIAL REVOLUTION
THE FOURTH AND FIFTH INDUSTRIAL
REVOLUTION
• The fourth industrial revolution is from the year 2000 to the present time or more commonly known as the 21st century.

• The management systems like the Total Quality Management (TQM), Lean Production and Six Sigma became widely practiced
worldwide. This enabled more efficient production of goods and services traded in a globalized economy.

• The primary aim of industrialization is to increase productivity, thereby improving the standard of living of the people. You may have
known Toyota's Robina and Humanoid or even ASIMO robot of Honda from a previous search or an encounter on social media _ robots
built to assist the elderly and interpret emotions for human socialization.
FOUR INDUSTRIAL REVOLUTION
THE FOURTH AND FIFTH INDUSTRIAL
REVOLUTION
• This period of industrialization, so far, focuses on biotechnology, additive manufacturing telecommunications, and transportation. The
sudden rise of a pandemic, like the COVID-19 gave way too many researches and technology buildup in the field of medicine,
specifically, testing, relief response, care, and vaccination. Up to the moment of writing this book, we still do not have a cure for the
eradication of the virus that caused the global pandemic in the years 2020 and 2021.

• The purposes of researching and developing genetic engineering such as DNA sequencing and gene editing is to develop a treatment
for some congenital diseases, invent new materials as inputs to the production of food or medicine, and analyze data for future
advances in the field of biotechnology, not to mention the mitigation of health risks from SARS and MERS to COVID-19.
FOUR INDUSTRIAL REVOLUTION
THE FOURTH AND FIFTH INDUSTRIAL
REVOLUTION
• The fifth industrial revolution, humanism, civility, inclusivity, creativity, and purpose in a digitally enabled progressive economy are the
drivers. The Internet of things, devices, data, and digitization have already come of age.

• In the recent pandemic that the world is experiencing, a need to act quickly humanizing processes that efficiently allocate resources
that had been scarcer than ever before, Artificial Intelligence, mechatronics, and robotics had been the focus of research in most formal
universities and laboratories in the world. The fifth industrial revolution is characterized mainly by three things: profits, purpose, and
people, prospering together.
 THE MODES OF
INDUSTRIALIZATION
Mercantilism Protectionism

Laissez-faire Importation

Exportation
 MERCANTILISM
• In protecting the economy of one's country or state, it is important to optimize net exports. This
adds to more products and services available to its people and affects the increase Of the GDP of
the country.
• Lars Magnusson points out in mercantilism the shaping of an economic language that mercantilism
in its traditional form was not a well-structured doctrine containing principles to describe economic
behavior or to prescribe Policy measures.

• Rather, it was characterized by a strong emphasis on the means to achieve national wealth and
power.
 PROTECTIONISM
• A set of policies by which a government seeks to shelter its industries
from foreign competition or to help them increase exports to
international markets.

• Restriction by governments to importation of goods and services is

through increasing tariffs, import quotas, or more regulations to products
sourced from other Countries.
 LAISSEZ - FAIRE

• An economic idea that means less involvement by means of regulations of the

government to its private industries to let them operate on their own, hence
laissez- faire is a French concept that literally means "let alone."
 IMPORTATION
• In the context of trade, when there is a need for goods and services
because of a shortage of a good and/or service from another country, a
country buys from another country.

• Sometimes, it comes from the trade agreements between countries

whether importations are allowed.
 EXPORTATION

• When there is a surplus, or we want to gain from sale to another country and
increase gross domestic product, we sell them our domestically produced
goods and/ or services.

• Like importation, a trade agreement may give way to supply the needs of
other countries at a given period of time.
 COSTS OF
INDUSTRIALIZATIO
N
Industrialization, modernization,
urbanization, and capitalism are
concepts that are intertwined and
cannot really be separated.
Businesses that produce goods and
services are basically motivated by
self-interest that is maximizing profit,
which means the least possible cost
of production.
Capitalists and even governments tend to
save for future survival, and because of
the idea of laissez-faire or let alone
policy, the government tends to give
some level of freedom to producers,
which may lead to abuse of land, labor,
and other valuable resources. Although
industrialization seemed to take place for
a long time, the effect of which
happened is really fast.
Thank
You