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By S.I. Cohen

This learn is an try and give a contribution to our figuring out of 1 of crucial reforms at present recommended through improvement economists to minimize rural poverty in constructing nations: land reform. Dr. Cohen has established his research on versions during which 3 social teams are performing: those, for brevity's sake, are known as land­ lords, peasants and the teams who contain the non-agricultural region. Peasants comprise the so-called landless peasants which western international locations quite often time period agrarian employees. the strategy will be prolonged to greater numbers of teams. The actors are concerned with quite a few actions, together with construction, intake and saving, the latter being on hand both for actual or for monetary make investments­ ment. this means that numerous wealth elements seem within the version along flows of products and prone. Use is made up of determinate types with linear and non-linear equations of a dynamic personality. The types are hired to estimate socio-economic improvement less than substitute regimes. Regimes fluctuate, at the one hand, based on which crew is in strength and, nevertheless, in keeping with the tools of financial coverage they use. it truly is an enticing characteristic of Dr. Cohen's learn that the types are utilized to 2 nations for which all of the useful statistical fabric has been envisioned: India and Chile. For either international locations a quick socio-political caricature precedes the numerical program of the types. For India 5 tools of socio-economic coverage are thought of: land transfers, measures to stimulate productiveness, credits guidelines, taxes and tenure and salary regulations.

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Agrarian structures and agrarian reform: Exercises in development theory and policy

This learn is an try and give a contribution to our realizing of 1 of an important reforms presently recommended by way of improvement economists to lessen rural poverty in constructing international locations: land reform. Dr. Cohen has established his research on versions during which 3 social teams are performing: those, for brevity's sake, are referred to as land­ lords, peasants and the teams who contain the non-agricultural region.

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Technological change; and above all 5. the general inability of the inherited land tenure system and the political system to cope adequately with the changed situation. Rapid and unexpected population growth can raise the demand for food beyond the capacity of the agricultural sector. 5 + x) percent. Looking back on the experience of developing countries we perceive that agricultural production grew in the past at an average rate of2 percent, which meant that developing countries either had to depend for their food consumption on imports, or starve.

3. 1. Demonstration models of agrarian structures and agrarian reform FEATURES OF THE BASIC MODEL Any model of agrarian reform must be a gross simplification of the real world in view of the complex interactions between the agrarian structure and the agrarian reform measures which we have briefly reviewed in the previous chapter. This recognized the basic model formulated here is a very modest description of reality and the need to elaborate and refine on it in consecutive steps is obvious. At the present stage, the analysis is greatly facilitated by considering only two groups of farmers: 'peasants' and 'landlords'.

The small regular borrowers depend, however, on merchants, middlemen and moneylenders who charge high interest rates. In addition to such explanations for the high interest rates as scarce capital and high rates of default and inflation, many money lenders have a monopoly position and are able to charge rates to small peasants greatly in excess of competitive market values. The big farmer requires relatively less credit and he can borrow from the money lender at much lower rates, given the farmer's property as security and also his power to favour his money lender in other ways when the need arises.

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